US home buyers may see a better market next year if mortgage rates stabilize, according to a report from Zillow. The report predicts that 2025 will bring more listing inventory, giving buyers more options and leverage in negotiations.
Zillow chief economist Skylar Olsen stated that buying a home in 2024 was surprisingly competitive due to high affordability hurdles. However, she expects more inventory to become available in 2025, easing competition and providing buyers with more room to maneuver.
The report forecasts 4.3 million existing-home sales in 2025, up from 4 million this year and 4.1 million in 2023. Although affordability remains an issue, with a forecasted 2.6% growth in home value, the market’s future is heavily influenced by mortgage rates.
Mortgage rates are expected to dip then rise again, mirroring their performance earlier this fall. As Zillow data shows, 13 major US metro areas are currently considered buyer’s markets, primarily located in the Southeast, including Miami, Atlanta, and Tampa, Florida.
More inventory is expected to emerge in the Southwest as well, potentially leading to additional buyer’s markets emerging.
Source: https://www.mansionglobal.com/articles/u-s-buyers-will-likely-have-more-options-in-2025-0d47a163