New year, new opportunities. It’s a good time to broaden your horizons and consider buying, selling or investing in real estate. Explore five housing market predictions for 2025 that could help you make a decision.
The rise in home prices will begin to slow down.
As seen in recent months with Lee County and Auburn’s average sales prices, the increase in average home prices will start to slow down in most regions this year. This slight shift in home prices will be more in line with income, making homes more affordable to more people.
Mortgage rates are expected to even out.
One of the housing market predictions for 2025 offers a bright spot for home buyers. According to Freddie Mac, the 30-year fixed mortgage rate fluctuated between 6.08% and 7.22% throughout the last several months.
Industry experts predict mortgage rates will continue to vary initially. Rates are anticipated to stabilize at the lower end in the upcoming year and 2026. Additionally, the Federal Reserve made two interest rate cuts at the end of the year and could make up to four more cuts this year.
Inventory will continue to increase.
As demand begins to grow, inventory is expected to maintain recent growth. The real estate market will continue to see more new builds and existing homes.
More homes will sell.
With more inventory, lower rates and affordable sales prices, experts predict a health boost in home sales.
A new type of home buyer continues to emerge.
Finally, as 2024 drew to a close, industry experts noted a new kind of buyer has started to emerge.
For instance, first-time buyers are older than they used to be. Repeat buyers are paying cash for new properties, skipping the mortgage. Single women outpaced single men in purchasing homes last year, and big cities are gaining popularity again.
Summary
If these housing market predictions for 2025 piqued your interest in local real estate opportunities, reach out to Ryan Roberts to learn more. His local knowledge and expertise will be an asset from the start! Learn more about Ryan, his listings and our community by reading our blogs.