What Do Experts Forecast for the 2025 Housing Market?

The housing market is set to change in 2025, which is why I’m breaking down what the experts are forecasting for interest rates, prices, and demand.

Right now, the No. 1 question I’m getting is, “What’s going to happen to the housing market in 2025?” I get it; a lot of people had plans to move this year but put things on hold due to higher mortgage rates and a slowing market. This begs the question: Will 2025 be any different? The short answer is yes, although there probably won’t be a dramatic shakeup that flips the market on its head. Today, I’m going over what the top experts are forecasting for mortgage interest rates, home prices, and buyer demand in 2025. Plus, I’ll share my insights on how you can get ready for these changes before the new year even starts: 1. Mortgage rates will ease slightly. It’s no secret that higher mortgage interest rates have hurt affordability for buyers and caused our market to slow down. U.S. existing home sales hit a 14-year low in September 2024, and one of the biggest reasons why is that would-be buyers are sitting on the sidelines waiting for rates to drop. While Fannie Mae and Freddie Mac aren’t predicting rates to crash to where they were a few years ago, most experts believe rates will fall below the 6% mark for the first time since Q2 of 2022. Since mortgage rates are a key factor in housing affordability, this is fantastic news for buyers sitting on the fence.

"Buyers need to take advantage of this window before it’s too late."

2. Home prices will increase slightly. While home prices have stagnated recently or even come down in some areas of the country, prices are projected to rise in 2025. Different institutions have varying forecasts, but prices are expected to rise 2.6% when you average their predictions. This is a modest increase compared to what we’ve seen over the last few years, but it projects stability for our market. Homeowners don’t have to worry about prices crashing, while things will stay relatively affordable for new buyers. 3. More buyers will enter the market. Lower interest rates and steady prices mean demand for homes will increase. According to the Senior Economist at Wells Fargo, “Lower financing costs will likely boost demand by pulling affordability-crunched buyers off of the sidelines.” As these buyers enter the market, the pace will speed up. Homes will sell faster, competition will increase, and supply will decrease as more buyers fight over fewer options. So what does this all mean for you? If you want to sell, 2025 is looking to be a great year for the market, so we recommend you start planning your move now so you can get a head start. On the other hand, buyers need to act fast. There will be a very short window where rates are lower, but home prices haven’t increased yet. If you’d like to plan for 2025, whether you’re looking to sell or buy, please call or email us. We’d love to help you plan your next move!

Should We Consider a Lowball Investor Offer?

A lot of homeowners are confused about why they’d ever accept a lowball investor offer, but they provide maximum convenience in exchange for the discount.

Recently, We received a call from a friend asking about a “lowball” offer they received while trying to sell their home. Even though they had priced their home very reasonably, this offer was well below what they were expecting—what was happening? As it turned out, this offer came from an investor. In case you aren’t aware, offers from investors are becoming more common all across the country. According to Business Insider, 44% of homes were purchased by investors in 2023, and this number is expected to increase. So, if investors pay below market value for homes, why do so many people accept their offers? Does it make sense for you to consider an investor offer when selling? To answer these questions, today, We're going over three key benefits of investor offers you should consider when selling your home: 1. Investors don’t care about the condition of your home. To get top dollar on the open market, you need to put in a little work. Painting, landscaping, staging, marketing, and more are necessary to truly maximize your sale. If you don’t have the time or money to put in this work, or you just don’t want to deal with the hassle, you might want to consider an investor offer. They will pay for your home as-is, which means they don’t care if it’s a bit of a fixer-upper.

"Investors offer maximum convenience in exchange for a lower price."

2. Investors close quickly. The market is a little slower than it used to be, and this can be a huge hurdle if you need to move as soon as possible. Fortunately, investor sales often move quickly. They’re used to buying homes on a regular basis, and there aren’t many negotiations when selling to an investor since they don’t care much about the condition of your house. They may even be willing to give you flexible closing terms to make it easier for you to find housing after moving. 3. Investors pay in cash. In real estate, cash is king. One of the most common reasons why real estate deals fall apart is because the buyer can’t secure proper financing from a bank. However, you don’t have to worry about that with cash buyer investors. Real estate agents love working with cash buyers because there’s no delay; if they have the money, they can get it to you immediately. While it might initially seem like an investor is trying to lowball you, the truth is that they provide an option that gives you maximum convenience. If that sounds like something you might be interested in, call or email me, and We can get you a free quote for an instant cash offer on your home. On the other hand, if you’re determined to get the best price possible, We can help get your home ready for the open market with as little stress as possible. We look forward to hearing from you!