Housing market experts have shared their year-ahead outlooks, offering insights into what to expect in 2025. While there won’t be boom times, there will be some small improvements.
One key area of focus is mortgage rates. Industry forecasts suggest rates will remain high, with averages ranging from 6.3% to 6.8%. The Redfin panel predicts rates will fluctuate throughout the year but remain in the high-6% range.
Home prices are also expected to rise, albeit modestly. Forecasts vary between a 2.6% increase (Zillow) and a 4% gain (Redfin). Home sales are predicted to increase, with forecasts ranging from 1.5% (Mortgage Bankers Association) to 9% (National Association of Realtors).
Several factors will influence the housing market in 2025, including urban revitalization efforts and pet-friendly policies. Redfin expects mayors in Blue Cities to enact pro-business policies, drawing workers back into coastal cities. Zillow predicts pet-friendly policies will become nonnegotiable for rental property managers.
In terms of inventory, Realtor.com forecasts 4.1 months’ worth of homes for sale, marking a balanced market. This will provide buyers with more options and potentially lead to increased sales volumes.
Overall, while the housing market won’t experience boom times in 2025, it’s likely to see some small improvements, driven by changes in mortgage rates, home prices, and sales volumes.
Source: https://eu.usatoday.com/story/money/personalfinance/real-estate/2024/12/19/housing-market-forecasts-for-2025/76943094007