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June 2024 Real Estate Market Update   Written By: Ivan Marquez Executive Assistant, Hum Real Estate

Home Price Growth

An overwhelming number of the top 21 industry sources call for home price growth in 2025. The 3% average of all the forecasts represents a return to historically normal price growth, which is a contrast to the rapid and unsustainable increases seen in recent years.

In Tallahassee, we ended 2024 with a strong median listing price above the national average of $400,000. This positions the local market as competitive, offering sellers an advantage with the potential for increased demand and growth.

Mortgage Rates

Forecasts from major institutions suggest that mortgage rates will stabilize between 6% and 6.5% in 2025. This is influenced by ongoing economic conditions including inflation, job market health, and the incoming administration’s policies.

Affordability

The trend of higher rates combined with steep price increases has put pressure on many buyers. However, the 2025 forecast points to homes becoming more affordable throughout the year.

When looking at the big picture, mortgage rates are currently lower than they have been historically, but they remain higher than the rates seen over the past two decades. Many people entering the real estate market in the past two decades have not experienced these higher rates, so the key focus will be how the market adapts, especially given the high rate of home price appreciation over recent years.

Inventory

Forecasts also show an increase in inventory, which is expected to create more opportunities for buyers. 

Home Sales

Total home sales, including both new and existing homes, are expected to reach 50.1 million in 2025. This indicates a rise in sales compared to 2024. This is driven by a combination of factors such as an increase in inventory, and the acceptance of the mortgage rate environment.

Bottom Line

• Increased inventory and rising home sales suggest a steady market recovery.

• The real estate market is expected to gradually improve in 2025. 

• Home price growth is expected to stabilize around the more historical norm of 3%.

• Mortgage rates will likely fall between 6% and 6.5%.

• Affordability is expected to improve.

Tallahassee Real Estate Market Statistics