What to Expect in the 2025 Housing Market

As we approach 2025, National Association of Realtors® (NAR) economists are anticipating significant shifts that could bring optimism to both buyers and sellers. Experts are suggesting that home sales will rise, mortgage rates will moderate, and the profile of home buyers will change in the upcoming year.

A Glimpse of Stability Amid Shifting Rates

One of the most significant changes expected in 2025 is the potential stabilization of mortgage rates. While buyer’s likely will not see the return of 4% rates in 2025, declining inflation may contribute to rates in the low 6’s, making home loans more affordable. This shift could revive buyer enthusiasm, especially among those who were previously priced out of the market.

However, while affordability may improve, the rate of recovery will likely vary regionally. Urban centers and high-demand areas could still experience elevated prices due to limited inventory.

An Increase in Home Sales

An increase in the number of jobs available could prove beneficial for the housing market in 2025. Other factors that may lead to an increased number of home sales include the growing population and inventory increasing.

Less Dramatic Price Increases

NAR Chief Economist, Lawrence Yun, predicts increased supply in the upcoming year. If this does in fact occur, increases in home prices will “not be as outrageous and will be more in line with wages.”

A Different Buyer Demographic

NAR’s 2024 Profile of Home Buyers and Sellers presented some interesting observations regarding demographics in the 2025 housing landscape. Trends we can expect to see include all-cash buyers due to the equity gains many homeowners have experienced, multigenerational buyers as families combine incomes to afford homeownership, and single buyers as a result of lower marriage rates.

For more detailed insights on what to expect in the 2025 housing market, visit the full article on the National Association of Realtors ®  website here.

About Jenny Vossler

Years working in real estate has taught me that everyone, including YOU, deserves a real estate agent who is highly experienced, has local knowledge, proven systems and procedures, and local connections in and out of the real estate industry. Whether you are buying, selling or investing, the transaction you’re about to embark on will have a large financial impact on your future.  Please make sure you choose an agent with unparalleled professional skills and high ethical standards to represent you. Give me a call – I look forward to learning about your real estate needs and personally discussing how I can be of service to you. I can be reached by call or text at (435) 559-1260, or by email at jennyvossler.homes@gmail.com.