As we step into the New Year, I wanted to take a moment to share my personal thoughts on the housing market moving forward. While I'll be diving into more data-driven posts in the future, today, I just want to focus on what I’m seeing and feeling in the marketplace right now.
The big question I’m hearing from clients and colleagues alike is: What's the housing market going to be like in 2025?
Here’s my take: I think we’ll experience more of the same. The market in 2025 will likely feel very similar to 2024, with one major theme: stability in the midst of challenges. Inventory is expected to grow slowly, and interest rates are likely to remain high.
As of 1/14/2025, the national average for a 30-year fixed mortgage is hovering around 7.25%. While I do believe rates will decrease from where they are, my gut (and what I’m hearing from others in the industry) suggests that we won’t see rates drop much below 6.75% in 2025. Of course, I hope I’m wrong and we see more significant relief! But for now, I’m preparing for more of the same.
2025: The Year of the "Needs Market"
With rates where they are, I foresee 2025 being what I like to call a “Needs Market.” This means that those who are actively buying or selling will primarily be people with urgent needs to make a move—whether that’s because their current home no longer suits their family, they're relocating for work, or other major life events (like marriage, divorce, or a change in lifestyle) are prompting the need for change.
Now, of course, there will always be exceptions. There are some homeowners who may have the luxury of waiting or choosing the best time for a sale, and there are always those lucky enough to own in highly sought-after neighborhoods or with homes that are in high demand. But my general advice is this: Unless you’re in one of those fortunate situations, it’s probably not the best time to sell right now.
That said, if you are in a situation where a move is necessary, be sure to consult with a professional to help guide your decision-making process. The market can be tricky to navigate, and there’s no one-size-fits-all approach.
