There are ten housing markets to watch in 2025. The Real Estate market will show real signs of life. The Federal Reserve’s gradual monetary policy easing is expected to stabilize mortgage rates around 6% in 2025. This stability will encourage more buyers to enter the market, driving existing home sales to approximately 4.5 million units.NAR predicts a 2% rise in home prices, setting the median price for existing homes at $410,700.
With stable rates and favorable market conditions, new construction is gaining momentum. More homeowners are selling their properties, boosting inventory levels. Builders will construct 1.45 million housing units annually, closing in on the historical average of 1.5 million.
Housing starts are projected to reach 1.45 million units annually, approaching the historical average of 1.5 million.
“Home buyers will have more success next year,” said Yun. “The worst of the affordability challenges are over as more inventory, stable mortgage rates, and continued job and income growth pave the way for more Americans to achieve homeownership.
Top 10 Housing Markets to Watch in 2025 (Alphabetically):
– Boston–Cambridge-Newton, MA-NH
– Charlotte-Concord-Gastonia, NC-SC
– Grand Rapids-Kentwood, MI
– Greenville-Anderson, SC
– Hartford-East Hartford- Middletown, CT
– Indianapolis-Carmel-Anderson, IN
– Kansas City, MO-KS
– Knoxville, TN
– Phoenix-Mesa-Chandler, AZ
– San Antonio-New Braunfels, TX
Market Trends for 2025
The Federal Reserve will gradually ease monetary policy, stabilizing mortgage rates around 6% in 2025.”
This rate stability will likely attract more buyers, pushing existing home sales to an estimated 4.5 million units. Furthermore, NAR predicts a 2% rise in home prices, setting the median price for existing homes at $410,700.
New construction is gaining momentum, and more homeowners are selling their properties. This is driven by stable rates and favorable market conditions, improving inventory levels. Builders will launch 1.45 million housing units annually, approaching the historical average of 1.5 million.
“Home buyers will have more success next year,” said Yun. “The worst of the affordability challenges are over as more inventory, stable mortgage rates, and continued job and income growth pave the way for more Americans to achieve homeownership.”
If, after reading this article, you might think about selling your home in 2025 or turning from renter to homeowner, don’t hesitate to get in touch with me. It would be my honor to help you reach your goals.
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