The housing market in January 2025 kicked off the year with a calm but telling pace. After the holiday slowdown in December, January showed subtle shifts in momentum—more new listings, slightly increased inventory, and buyers beginning to re-enter the market with caution. Here’s a look at how the numbers shaped up and what they mean as we head into the rest of Q1.
Inventory Inches Up
One of the most notable changes in January was the slight rise in homes for sale, moving from 20 active listings in December to 24 in January. It’s not a flood of inventory by any means, but it’s a sign that some homeowners are beginning to test the waters early before the spring rush.
New listings jumped to 23, up from just 5 in December, marking a 360% increase month-over-month. While many of these homes are still lingering from the slower winter months, the new inventory gives buyers a bit more breathing room and could encourage more activity in February.
Buyer Activity Remains Measured
Pending sales remained flat at 18 homes, the same as December, while closed sales dropped to 13 from 22 the previous month. This isn’t surprising for January, which often reflects the lagging effects of the holiday season when fewer homes go under contract in December.
But while buyer activity hasn’t surged yet, it’s worth noting that the absorption rate (pending sales) held firm at 94.7%, and the absorption rate (closed sales) came in at 68.4%—both indicators of a still-strong seller’s market.
The months of inventory remained relatively balanced with 1.5 months based on closed sales and 1.1 months based on pending sales. These low numbers reflect a tight market where supply is not meeting demand, especially for well-priced homes in desirable locations.
Prices Hold Steady
Home prices in January showed resilience. The median sold price came in at $685,000, only a slight dip from December’s $685,000, signaling a flat but steady pricing trend as we entered the new year.
Sellers still had to negotiate slightly, with homes selling for 97% of their original list price, a slight dip from the 99% seen in December. However, this number is in line with seasonal expectations—buyers tend to be more cautious right after the holidays.
The price per square foot averaged $369, up from $362 in December, suggesting that buyers remain willing to pay premium rates for updated and well-presented homes.
Days on Market: A Tale of Two Extremes
January also saw a spike in average days on market, jumping to 59 days, the highest figure recorded in the past year. The average CDOM (Cumulative Days on Market) rose to 52 days, also a yearly peak.
These numbers can largely be attributed to stale listings that carried over from late 2024. Homes that weren’t priced right or didn’t show well sat longer, pulling up the average. In contrast, well-prepped and competitively priced homes still moved relatively quickly, often within the first couple of weeks.
What This Means for Sellers
If you’re planning to list this spring, January’s data is a reminder that preparation matters. Buyers are still active—but more selective. Homes that are outdated, overpriced, or poorly marketed are sitting longer. On the flip side, those that are clean, staged, and priced right are selling at strong prices, even in slower months.
This is the time to start preparing—decluttering, handling light updates, and talking to an agent to put together a plan. Getting ahead of the spring wave could mean less competition and more attention on your home.
What This Means for Buyers
January’s market offered buyers a slight advantage in terms of negotiation and choice. Fewer bidding wars and more time to evaluate homes created a window of opportunity. But as we move into February and March, buyer competition is likely to heat up again.
If you’re planning to buy this year, now’s the time to get pre-approved, finalize your criteria, and stay ready to act.
