As we move through the early months of 2025, the Abilene real estate market has shown encouraging signs of stability and growth. However, it’s important to understand the context behind the numbers to gain a clear picture of what’s happening in our local market.

2025’s Strong Start – But Keep the Numbers in Perspective

Year-over-year statistics show a significant 25% increase in home sales compared to the same period in 2024. While this appears impressive, it’s worth noting that January and February of 2024 saw a roughly 20% decline from 2023 activity levels. This means the recent jump is more of a return to typical market behavior rather than an extraordinary surge in demand.

Still, this steady recovery is a positive sign as we head into the traditionally busy spring selling season.

Inventory Levels and a Shifting Market

Inventory levels remain healthy, contributing to a more balanced market that continues to lean slightly in favor of buyers across most price points. Homes in the $800,000+ range are firmly in buyer’s market territory — a trend that has persisted even when the market was much tighter in 2022 and 2023.

For sellers, this shift highlights the importance of strategic pricing and preparation. The market has favored buyers for several months now, and with more options available, sellers must focus on making their property stand out.

Competing with New Construction

A key factor for sellers to consider is the increase in new construction inventory. Buyers continue to show a strong preference for newer, updated homes — even at slightly higher prices. In contrast, homes that require updates or renovations are seeing increased resistance in today’s market. The gap between the asking price of updated homes and those needing work has widened considerably.

The Rising Cost of Renovations

One major reason for this widening gap is the rising cost and time commitment involved in home remodeling. Labor shortages, material costs, and supply chain delays have pushed renovation expenses to historic highs. As a result, many buyers are more inclined to pay a premium for a move-in-ready home rather than commit to extensive post-purchase upgrades.

For homeowners considering selling, investing in high-value improvements like kitchen upgrades, bathroom remodels, or updated flooring can still deliver a solid return on investment — especially when done strategically.

Economic Uncertainty and Interest Rates

While economic uncertainty remains a concern as the government navigates spending cuts and tariffs, it’s important to remember that market volatility is common during transitions in national leadership. Historically, these periods of fluctuation tend to stabilize in the months that follow.

On the positive side, interest rates have pulled back slightly, and we’re currently enjoying the lowest rates of 2025. This favorable environment presents a promising opportunity for both buyers and sellers as we approach the spring season.

For deeper insights into the broader economic outlook and mortgage rate trends, we recommend these recent updates from NAR economists:

• Instant Reaction: Jobs Report – March 7, 2025
• Instant Reaction: Mortgage Rates – March 13, 2025

Final Thoughts

As we enter the heart of the 2025 real estate market, both buyers and sellers can find opportunities with the right strategy. Sellers should focus on competitive pricing, strong property presentation, and understanding how to position their home effectively against new construction. Buyers should take advantage of the current interest rates and explore their options in what is currently a favorable market environment.

If you have questions about navigating the Abilene real estate market or want to discuss your next move, reach out to one of our experienced agents today. We’re here to help you succeed!

Abilene Housing Market Update – January 2025

January marked a steady start to the 2025 Abilene housing market, showing signs of recovery but still working through key challenges. While year-over-year stats show a significant increase in sales, it’s crucial to put those numbers in perspective—sales in both 2023 and 2024 were over 35% lower than previous years.

This means that while the market is improving, it’s still navigating economic shifts, higher mortgage rates, and buyer hesitation.

Interest Rates & Market Outlook

One of the biggest factors impacting the market is mortgage rates, which have remained stubbornly high despite some small recent decreases. Inflation concerns and global economic uncertainties make it difficult to predict when rates will meaningfully decline.

📌 Read more on the latest interest rate insights from NAR Chief Economist Dr. Lawrence Yun:
➡️ Instant Reaction – CPI, February 12, 2025

📌 See how mortgage rate trends are shaping up:
➡️ Instant Reaction – Mortgage Rates, February 13, 2025

Should You Wait for Lower Interest Rates?

It’s important to set realistic expectations—we won’t see the ultra-low rates from the COVID era again anytime soon (if ever). Even when rates do drop, home prices will likely keep rising due to demand.

📊 Here’s a real example of how waiting may not save you money:

• A $250,000 loan with 10% down at 7% interest is only $25/month more than the same loan at $260,000 with 6.5% interest.
• Waiting could mean paying more for the home itself, wiping out potential savings on interest rates.

⏳ Waiting doesn’t always mean saving—if you’re considering buying, let’s talk about locking in the best deal before home prices climb further!

Inventory Growth = More Options for Buyers

A major positive shift is the significant increase in inventory throughout 2024 and early 2025. Buyers now have far more options across multiple price ranges—a sharp contrast to the extreme competition of 2022 and 2023.

🏡 For buyers, this means:
✅ Less competition & fewer bidding wars
✅ More choices in every price range
✅ Greater negotiating power on price & terms

If you’ve been waiting for a balanced market, now is a great time to buy!

Sellers: Still a Strong Market for You

While home prices have slightly retreated from their all-time highs in 2023, most homeowners are still sitting on significant equity gains from the past several years.

📈 Selling now means:
✔️ High buyer demand as more buyers return to the market
✔️ Strong home values due to limited long-term inventory growth
✔️ Opportunity to move before rates drop & competition increases

Whether you’re buying or selling, understanding the market is key—and we’re here to help.

🏡 Let’s Talk Real Estate!

Have questions about buying or selling in 2025? Let’s connect and build a custom strategy for your real estate goals!

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!

As we near the end of 2024, the Abilene housing market has shown signs of stability, even while activity has cooled slightly compared to earlier in the year. Inventory levels, which peaked at 4.9 months in September, have settled to a balanced 4.5 months in November. New listings have begun to slow following the rapid growth seen in Q2 and Q3, while buyer demand continues to fluctuate alongside interest rates. This is a return to a more normalized market, with steady appreciation and inventory levels resembling pre-pandemic trends. If these patterns continue, we can expect annual appreciation in the 2-4% range, with inventory holding between 4-5.5 months—a healthy, balanced environment for buyers and sellers alike.

Interest Rates and Market Impact

Volatile interest rates remain a significant factor in the current market. Rates have seen sharp fluctuations in the second half of 2024, though they are still slightly improved from earlier highs. Experts predict we’ll see further decreases in 2025, with rates potentially stabilizing in the high 5% range. However, it’s important to note that the historic low rates of the COVID era are unlikely to return, so buyers and sellers must adapt to this new reality.

New Construction Trends

One of the more notable trends this year has been the slowdown in new construction. Listings for newly built homes are down nearly 20% year-over-year as the cost of construction materials remains high and demand has softened. In response, we’ve seen the rise of national builders focusing on smaller, more affordable homes to meet mid-range buyer demand. This is a key development, as it helps bridge the gap in affordability for families looking to enter the market.

Affordability: Abilene vs. Texas

Abilene continues to shine as an affordable option compared to the broader Texas housing market. In November 2024, the median home price in Abilene was $239,000—28% lower than the state median of $333,000. This affordability translates to significant value for homebuyers looking to settle in a vibrant, growing community. Abilene’s affordability and balanced market conditions make it an exceptional place to buy and sell real estate, offering homeowners both value and opportunity.

As we step deeper into Q4, the latest October 2024 statistics reveal trends that buyers, sellers, and real estate professionals alike should watch closely.

By the Numbers:

• Median Home Price: $247,000, up 7.4% compared to October 2023. This growth reflects the consistent demand for quality homes in the Abilene area.
• Active Listings: Inventory has increased by 19%, with 827 active listings available in October. This rise could mean more choices for buyers entering the market.
• Closed Sales: Dropped 12% compared to the same time last year, totaling 154 sales for the month.
• Days on Market: Homes spent an average of 71 days on the market and 35 days to close—marking a total of 106 days, 23 more than October 2023.
• Months of Inventory: Increased to 4.7 months, compared to 3.7 months in October 2023. This indicates a slight shift toward a more balanced market.

Key Takeaways:

The steady rise in median home prices suggests the Abilene market remains robust, driven by demand even amid national uncertainties. However, the decline in closed sales reflects buyer hesitation in the face of rising interest rates and lengthier decision-making timelines.

Mortgage Rates Continue to Climb:

Nationally, mortgage rates have been a hot topic, and their impact can be felt here in Abilene. The National Association of Realtors (NAR) reports the average 30-year fixed-rate mortgage currently sits at 6.78% as of November 14, 2024. While this is a slight decrease from last week, rates remain high compared to the historically low levels seen in recent years. For buyers, this translates to higher monthly payments and impacts overall affordability.

Lawrence Yun, NAR’s Chief Economist, predicts that rates could trend downward in 2025 as inflation eases and the economy stabilizes. While relief may be on the horizon, buyers and sellers should prepare for continued fluctuations in the near term.

What This Means for Buyers:

With inventory on the rise, buyers have more options to consider. However, the current mortgage rates underscore the importance of locking in the best financing terms available. Consulting with local lenders and REALTORS who understand the market is key to navigating these changes confidently.

What This Means for Sellers:

For sellers, the rise in active listings means increased competition. Ensuring your home stands out with professional photography, competitive pricing, and strategic marketing is critical. While days on market have increased, homes priced right for their value and location are still moving.

Abilene’s Resilience:

The Abilene market has long been defined by its stability and community-driven appeal. As we’ve seen throughout 2024, our market continues to hold strong even when broader challenges arise. Whether buying or selling, partnering with experienced local professionals ensures you stay ahead of the curve.

Partner With BHGRE Senter, REALTORS:

At BHGRE Senter, REALTORS, we’ve helped Abilene families and businesses navigate the market for nearly 70 years. With expert guidance and a deep understanding of both local and national trends, we’re here to help you find your perfect place. Contact Us today to get started!

Abilene MSA Housing Market Update: Q3 2024 Recap 🏡

As we move into the final quarter of 2024, let’s take a moment to reflect on the latest housing trends in the Abilene Metropolitan Statistical Area (MSA). Our Q3 data reveals some significant shifts in the local real estate market. Whether you’re buying or selling, understanding these trends is key to making informed decisions.

1️⃣ Median Price Slightly Decreases

The median home price for Abilene in Q3 was $242,000, marking a 1.2% decrease compared to the same period last year. While prices are slightly lower, it’s still important to note that this remains a competitive market with varying opportunities in different price ranges.

2️⃣ Active Listings Skyrocket

One of the most noticeable changes this quarter has been the dramatic increase in available homes. Active listings are up by 25.3%, bringing the total to 873 listings in Q3. This is fantastic news for buyers who have been facing low inventory levels over the past few years. Sellers, however, need to be more strategic with pricing and marketing as competition intensifies.

• July: We started noticing this trend in July, when inventory levels began their steady climb.
• August: By August, the pace of new listings further emphasized a shift towards a more balanced market.

3️⃣ Closed Sales Decline

In contrast to the growing inventory, closed sales dropped by 5.9%, with a total of 575 closed transactions. This aligns with what we’ve been seeing across the country as buyer demand has cooled, likely due to fluctuating interest rates and buyer caution in a changing market.

4️⃣ Days on Market & Time to Close Lengthen

Homes are taking longer to sell. The average days on market jumped to 59, and the total time to close now sits at 96 days — 18 days longer than this time last year. While this may feel discouraging to sellers, it’s an opportunity for buyers to take their time finding the right home.

5️⃣ Months of Inventory Nears 5 Months

We are now at 4.9 months of inventory, a significant jump from the 3.7 months in Q3 2023. This places us in a more balanced market, with opportunities for both buyers and sellers. If inventory continues to grow, we could see further shifts favoring buyers as we move into Q4 and beyond.

• September: By the time we reached September, the inventory had reached record levels for 2024, setting up a promising close to the year.

What’s Next for Abilene’s Housing Market?

The data from Q3 paints a picture of a market in transition. While prices have slightly decreased, the significant rise in inventory gives buyers more options and negotiating power. Sellers need to adapt to this changing environment, and it’s crucial to work with a REALTOR® who understands how to navigate this market.

For more in-depth insights into the specific months and how trends evolved, check out our detailed blogs for July, August, and September.

Want personalized advice on what these stats mean for you? Contact Us at BHGRE Senter, REALTORS® for a free consultation!