If you were house-hunting in 1995, you might remember flipping through newspaper listings, calling real estate agents from a landline, and driving around town to spot "For Sale" signs. Fast forward nearly 30 years, and the home-buying process looks nothing like it did back then. But while technology has revolutionized the way we search for homes, the housing market itself has some striking similarities to 1995—especially when it comes to home sales volume.

In 2024, existing-home sales hit 4.06 million—the lowest level recorded since 1995, when only 3.85 million homes were sold. But here’s the catch: the country has grown by more than 74 million people since then, making today's housing crunch even more significant. Let’s take a closer look at the key differences between these two periods and what they mean for buyers and sellers today.

Housing Inventory Then vs. Now

One of the biggest differences between 1995 and 2024 is housing inventory. At the end of 1995, there were 1.58 million single-family homes available for sale, compared to just 1.00 million in December 2024. While 2024’s supply was slightly better than the previous year, the numbers still fall far short of demand.

To put it into perspective, in 1995, the housing market had a 4.8-month supply, meaning if no new homes were listed, it would take 4.8 months to sell everything available. By 2024, that number dropped to 3.7 months, reflecting a much tighter and more competitive market.

Affordability: How Far Did a Dollar Go?

If you think home prices are sky-high today, you’re not wrong. The median home price in 1995 was $114,600 (or about $241,000 when adjusted for inflation). In 2024, the median price reached an all-time high of $407,500.

While today’s mortgage rates—averaging 6.72% in 2024—are lower than 1995’s 7.93%, the affordability gap has widened dramatically due to rising home prices. In 1995, a household needed an income of $32,112 to afford a median-priced home (equivalent to $65,957 in today’s dollars). But in 2024, that figure skyrocketed to $103,824, making homeownership much more difficult for first-time buyers.

Who Could Afford to Buy? Then vs. Now

With lower home prices and slightly higher interest rates, 42% of buyers in 1995 were first-time homebuyers. In contrast, in 2024, that share dropped to just 24%—a historic low.

The age of the average first-time homebuyer has also increased from 31 years old in 1995 to 38 years old today. The biggest hurdle? Student loan debt and high living costs make it harder for young buyers to save for a down payment.

Looking Ahead to 2025: Signs of Hope?

While 2024 was a challenging year for homebuyers, there’s reason to be optimistic. Mortgage rates have started to ease, and inventory levels are slowly improving. If these trends continue, 2025 could bring better opportunities for buyers—especially those who have been sitting on the sidelines waiting for more affordability.

If you're thinking about buying or selling in Brevard County, now is the time to start preparing. Stay informed about the latest market trends and work with a local expert who understands the unique challenges of today’s real estate market. Reach out today to discuss your options and make the most of what 2025 has in store!