Abilene Housing Insights: 2024 Wrap-up and December

The Abilene housing market saw notable shifts throughout 2024, culminating in a dynamic December that showcased the resilience of both buyers and sellers. Below, we break down the key trends from December 2024, followed by an overview of the year as a whole.

December 2024 Market Highlights

The final month of the year demonstrated a mix of challenges and opportunities in the Abilene real estate market:

1. Median Price:
   December’s median price reached $246,000, marking a significant 14.4% increase compared to December 2023. This highlights sustained buyer demand and rising property values.
2. Active Listings:
   The number of active listings grew by 16.5%, with 769 properties on the market. This represents increased options for buyers compared to the tight inventory seen earlier in the year.
3. Closed Sales:
   Closed sales were down 13.4% year-over-year, with 152 properties sold in December. While fewer sales closed, this reflects broader market conditions influenced by affordability challenges and interest rate fluctuations.
4. Days on Market:
   Homes took an average of 104 days from listing to closing—14 days longer than the same time last year.
5. Months of Inventory:
   Inventory climbed to 4.3 months, a jump from 3.5 months in December 2023, signaling a shift toward a more balanced market.

2024: A Year of Resilience and Adaptation

The Abilene real estate market in 2024 saw its fair share of challenges, from rising interest rates to slower transaction timelines. However, the year proved that both buyers and sellers are willing to adapt, showcasing optimism in the local market.

Key Takeaways from 2024:

1. Rising Home Prices:
   The median home price for the year was $245,000, a 6.6% increase over 2023. This steady growth in home values reinforced the stability of the Abilene market, even as national trends pointed to a slowing pace.
2. Inventory Growth:
   Active listings surged by 26.8%, with 786 properties on the market at some point in 2024. More choices gave buyers greater opportunities but didn’t entirely alleviate affordability concerns.
3. Fewer Closed Sales:
   Total closed sales dropped 3.7% year-over-year, with 2,153 transactions completed. Higher borrowing costs and economic uncertainty slowed activity, particularly in the second half of the year.
4. Market Dynamics:
   Homes spent an average of 98 days on the market, a 13-day increase over 2023. The 4.3 months of inventory throughout the year suggested the market was transitioning toward balance, favoring neither buyers nor sellers.

Economic Context and Its Impact

Broader economic conditions shaped the Abilene housing market in 2024:

• Federal Reserve Policies:
  With the Federal Reserve maintaining its benchmark interest rate, mortgage rates remained elevated. This impacted affordability, particularly for first-time buyers. However, the decision to hold steady in December provided some stability to end the year.
• Inflation Trends:
  Inflation remained a hot topic, though the latest Consumer Price Index (CPI) report suggests easing pressures. This bodes well for 2025, potentially paving the way for rate reductions and increased activity in the housing market.

Looking Ahead to 2025

As we step into the new year, Abilene’s housing market is well-positioned for a balanced and steady recovery. Inventory remains healthy, and easing inflation could provide relief to buyers seeking affordability. Meanwhile, sellers will continue to benefit from strong price growth, especially for homes priced in high-demand ranges.

For those considering buying or selling in 2025, it’s an exciting time to make a move. Our agents at Better Homes and Gardens® Real Estate Senter, REALTORS® are here to help you navigate the evolving market with expertise and care.

Interested in learning more? Contact us today to discuss your real estate goals!