As 2024 came to a close, the real estate market saw surprising strength. The median sales price of existing homes in December was higher than in November—a rare occurrence during a typically slower season. Historically, real estate experiences month-over-month price declines in late Q4 due to seasonality. However, December's median sales price capped off a year of growth, with a 10.3% year-over-year increase—the highest on record for any month in 2024. This surpassed April's previous peak by 0.7%.
For the entire year, the median sales price jumped from $275,000 in 2023 to $291,580 in 2024. Looking ahead, the Heartland MLS region could surpass a $300,000 median sales price in 2025 if appreciation exceeds 3%.
Listings on the Rise
December saw a solid 3.88% increase in new listings compared to December 2023. Throughout 2024, listings rose in 10 out of 12 months, with slight declines in January and November. The November dip was minor (0.19%) and likely influenced by election-related hesitancy. Meanwhile, January’s drop can be attributed to harsh winter weather, reminiscent of last year when temperatures plummeted to -4°F during a football game, dampening activity
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Contracts and Closings
After four months of positive growth in contracts written, December saw a slight decline of 0.58% compared to 2023—a difference of just 11 contracts, which is negligible. Given the 16% year-over-year growth in earlier months and rising interest rates, this small dip isn’t surprising.
Closings, however, surged in December, up over 16% year-over-year. Many of these closings stemmed from contracts written in late October and November, with buyers rushing to finalize deals before year-end. January 2025 is expected to remain strong, as contracts signed in late November close out.
Days on Market Insights
In 2024, days on market data for closed resale properties revealed that:
67% of homes went under contract within the first 30 days.
16% sold within 31–60 days.
Just under 17% sold after 61+ days.
Homes priced between $250,000–$550,000 moved the fastest, while properties at lower and higher price points lingered longer on the market.
Sales Volume and Historical Context
While national reports claim 2024 had the fewest home sales since the late 1990s, our region bucked that trend. A total of 36,417 residential properties sold in 2024, surpassing the 35,553 homes sold in 2023. To find lower yearly totals, we’d need to go back to 2014. The market's peak was in 2021, with 47,480 residential sales. Residential sales include single-family homes, condos, townhomes, and multi-family properties (up to 4-plexes) and both resale and new homes.
Challenges for 2025
The residential market faces several headwinds in 2025, including:
High mortgage rates: Rates are now above 7% as of January 24, compared to a low of 6.2% in September 2024. Although the Federal Reserve has lowered its benchmark rate, mortgage rates remain disconnected.
Potential tariffs: These could raise costs for home construction and renovations.
Inventory constraints: Many homeowners are reluctant to sell due to current rate conditions.
Despite these challenges, 2024’s resilience offers optimism as we navigate 2025.
Kyle Niemann
Engel & Völkers Kansas City
(913) 900-0001
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