Real Estate Investing
As we inch closer to 2025, real estate experts have started releasing predictions for what the housing market may look like. From mortgage rates to home prices, here's an overview of what buyers and sellers can expect as the new year approaches.
One of the key factors influencing the housing market is mortgage rates. The good news? Rates are projected to come down by 2025, making home buying more affordable for many. As inflation cools, experts predict a gradual decline in rates across the year.
Here are the average mortgage rate projections for each quarter of 2025:
These rates are averages based on estimates from Fannie Mae, the Mortgage Bankers Association (MBA), the National Association of Realtors (NAR), and Wells Fargo. If these trends hold, 2025 could be a favorable time to secure a mortgage compared to the higher rates we've seen in recent years.
With lower mortgage rates on the horizon, buyer demand is expected to pick up, leading to an increase in home sales. As more buyers re-enter the market, it's anticipated that the total number of homes sold in 2025 will rise.
Here are the forecasts for total home sales in millions:
The average prediction from these sources sits at 5.4 million homes sold, showing a positive outlook for market activity. This is good news for sellers looking to list their homes in a more competitive environment.
While more homes are expected to sell, prices are also forecasted to rise—but not at the dramatic pace we saw during the pandemic. The increase will likely be moderate, driven by a higher number of buyers entering the market.
Here are the percent appreciation forecasts for 2025:
The average price appreciation across all forecasts is 2.6%, indicating that while home prices will go up, the rate of increase will be more manageable for buyers. Still, it’s important to act sooner rather than later if you’re planning to buy, as prices are not expected to fall.
If you're thinking about buying or selling a home in 2025, these forecasts can help you plan ahead:
Let’s connect to discuss what these trends mean for your specific situation and how we can help you make the most of the opportunities in the 2025 housing market! Whether you're buying or selling, it's important to stay informed so you can make the right move.
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