The market remains subdued as many buyers await anticipated rate cuts. Uncertainty surrounding U.S. tariffs and the new president’s policies has led to increased caution among purchasers. I anticipate that the first quarter of 2025 will reflect the slow pace observed at the end of 2024, as the market adjusts following the rapid price increases of 2021-2022. It’s important to remember that interest rate changes are tools used to balance market and economic conditions in real time. https://statscentre.
To help you understand the statistics without delving too deeply into the numbers, here’s a quick overview of the key terms we use:
- HPI (Home Price Index): Represented by the red dashed line on our graph, this index shows the price of a “typical” home by filtering out extreme values.
- Median Price: Shown as the green dashed line, this is the middle value of all home sales—half the homes sold for more and half for less.
- Average Price: Depicted by the purple dashed line, this is the overall average price, which can sometimes be influenced by very high or low-priced homes.
This graph ties directly into our market commentary by visually demonstrating how these indicators reflect the current state of the market. It offers a clear, straightforward snapshot of home pricing trends, making it easier to see how the market is adjusting over time.
