2025 Housing Market Forecast: What Buyers and Sellers Need to Know
The U.S. housing market is poised for a turnaround. After back-to-back years of sluggish activity, the latest NAR housing report signals a potential housing market recovery ahead. According to Chief Economist Lawrence Yun, both home prices and sales activity are expected to rise — giving buyers and sellers a fresh reason to re-engage.
Current Market Conditions: What’s Holding Buyers Back
It’s no secret that mortgage rates have made homeownership more challenging. Elevated rates in 2024 sidelined many potential buyers, while homeowners holding low-interest loans delayed listing. The result? Record-low sales and limited inventory.
But Yun points out that inflation is cooling and rates could ease soon — creating a shift in real estate market conditions.
Housing Market Forecast: 2025 and Beyond
Here’s what buyers, sellers, and real estate professionals should watch for:
📊 Existing home sales projected to rise 6% in 2025 and 11% in 2026
🏡 New-home sales expected to increase 10% in 2025
📉 Mortgage rates 2025 forecasted at 6.4%, falling to 6.1% in 2026
💸 Home price growth estimated at 3–4% annually
Plus, wage growth is outpacing inflation, which strengthens buyer purchasing power.
What This Means for Buyers and Sellers
Buyers: With mortgage rates expected to drop and inventory slowly improving, this could be a prime opportunity to re-enter the market. Stay pre-approved and ready to act.
Sellers: If you’ve been waiting to list, now’s the time to prepare. Demand is building, and selling your home in 2025 could position you for strong offers and shorter days on market.
Real Estate Predictions: What's Next?
If mortgage rates trend downward and inflation remains in check, 2025 could bring renewed energy to the housing market. Buyer demand is still strong — especially among renters eager to become homeowners.
The key? Staying ahead of the curve.
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