Hey there! If you’re thinking about buying or selling a home in 2025, let me give you the inside scoop on what the experts are saying. Knowing what to expect from the housing market can really help you make the right move, whether you’re planning to list your place or you’re on the hunt for a new one. Here’s an easy housing market forecast looking at mortgage rates, home sales, and prices as we head into 2025.
Mortgage Rates Might Finally Dip (Slightly, But We’ll Take It!)
We all know how much mortgage rates affect everything when it comes to buying a home. The good news? It looks like they’re projected to come down a bit next year. I’ve been keeping an eye on what some big players like Fannie Mae, the Mortgage Bankers Association (MBA), and the National Association of Realtors (NAR) are saying, and they’re all calling for a gradual decline in mortgage rates as we move through 2025.
What’s driving this? Well, with inflation easing up and unemployment expected to tick up just a little, the economy is still strong but cooling off a bit. That nudged the Federal Reserve into lowering its interest rates, and when that happens, mortgage rates tend to follow. So, while we’re not expecting anything too dramatic, even a small drop can make a difference for buyers (and sellers, too, when it comes to pricing your home right).
Expect More Homes To Hit the Market (Finally!)
If you’ve been waiting for more homes to become available, 2025 could be your year. We’re expecting both more homes for sale and more buyers jumping back into the market. Higher mortgage rates over the past couple of years had a lot of folks sitting on the sidelines, but with rates expected to come down a bit, more people will feel comfortable making a move.
What’s even more exciting is that home sales are forecast to pick up! Fannie Mae, MBA, and NAR are all estimating that about 5.4 million homes will sell in 2025. To give you some context, only about 4.8 million homes were sold in 2023, and this year we’re looking at closer to 4.5 million. So, while we won’t see a crazy surge, it’ll definitely be a step up from where we’ve been.
And with more buyers coming back into the game, we’ll see a bit more competition—which could make things interesting for both buyers and sellers.
Home Prices Are Set to Rise (But Don’t Worry, It’s Modest)
Now, let’s talk prices. If you’re a seller, you’ll be happy to hear that home prices are expected to go up. But before you start planning your big payday, keep in mind that it’s going to be a slow and steady rise. On average, we’re looking at home prices going up about 2.6% across the country.
I’ve been tracking forecasts from the top real estate pros, and while opinions vary on just how much prices will increase, everyone agrees that it’ll be a moderate climb. Of course, this depends on your local market—some areas might see bigger jumps than others. But overall, it’ll be more of a “normal” rate of increase compared to the wild price surges we’ve seen in past years.
Bottom Line: Let’s Chat About Your 2025 Plans
Staying informed on these housing market forecasts can really help you plan your next move. Whether you’re thinking of buying or selling, knowing what to expect will help you make the best decision. If you want to dive deeper into how these trends could affect your specific situation, let’s connect! I’m always here to help you figure out the best path forward, no matter where the market is headed.
Anytime between “now” and “right now” is a good time to take action on shaping your best life, and that includes where you live. Let’s get the ball rolling on your next steps.
(702) 374-6807. Or drop me a line here.
