2025 Housing Market Forecasts
2025 Housing Market Forecast:
As we step into 2025, it’s essential to understand how the housing market is projected to evolve. Here are the key forecasts shaping the year ahead:
Mortgage Rates Are Expected to Decline Slightly
According to experts, mortgage rates are anticipated to settle between 6% and 6.5% by the end of the year. While this is a slight decline from previous years, there could still be some fluctuations along the way. Here's a breakdown of 2025 mortgage rate forecasts for 30-year fixed-rate loans from top industry sources:
- Redfin: 6.8%
- CoreLogic: 6.5%
- Wells Fargo: 6.41%
- Fannie Mae: 6.3%
- Moody’s Analytics: 6.3%
- Realtor.com: 6.2%
- NAHB: 6.12%
The average forecast from all nine sources is 6.36%, signaling a more stable environment for potential homebuyers.
Home Prices Are Projected to Rise
National home prices are forecasted to grow at a more sustainable pace, but the appreciation rate will vary by local market conditions. On average, experts predict a 3% price appreciation across the nation. Some standout forecasts include:
- AEI Housing Center: 5.5%
- Wells Fargo: 4.9%
- Goldman Sachs: 4.4%
- Redfin: 4.0%
However, not all projections are optimistic. For instance, Moody’s Analytics expects a slight decline of -0.4%, and Morgan Stanley anticipates a -2% drop. These differences highlight the importance of understanding your local market trends.
More Homes Will Be Available
One of the most exciting predictions for 2025 is the expected increase in housing inventory. The number of homes for sale is projected to grow by 15% by the end of the year. This means buyers will have more options as inventory rises, creating opportunities for both first-time buyers and those looking to upgrade.
According to Mike Simonsen, founder of Altos Research:
“2025 is poised to continue the trend of rising inventory across the country. We’ll probably finish 2025 with 15% more homes available than we have now.”
What Does This Mean for You?
With mortgage rates stabilizing, home prices appreciating, and inventory increasing, 2025 could be a pivotal year for buyers and sellers alike. Whether you’re considering buying your first home, upgrading, or selling, now is the time to align your real estate goals with these market trends.
Let’s Plan Your 2025 Goals
Want to dive deeper into how these forecasts could affect your real estate journey? Let’s connect and discuss strategies to navigate this dynamic market. Together, we can make 2025 your most successful year yet in real estate.
Some Highlights
- Wondering what to expect when you buy or sell a home this year? Here’s what the experts say lies ahead.
- Mortgage rates are projected to come down slightly. Home prices are forecast to rise in most areas. And, there will be more homes available for sale.
- Want to know more about what this could mean for your plans this year? Let’s connect to discuss your 2025 goals.
