{"id":1396,"date":"2025-01-17T22:14:38","date_gmt":"2025-01-17T22:14:38","guid":{"rendered":"https:\/\/johnsonteamrealestate.com\/?p=1396"},"modified":"2025-01-17T22:14:39","modified_gmt":"2025-01-17T22:14:39","slug":"expert-forecasts-for-the-2025-housing-market","status":"publish","type":"post","link":"https:\/\/johnsonteamrealestate.com\/index.php\/2025\/01\/17\/expert-forecasts-for-the-2025-housing-market\/","title":{"rendered":"Expert Forecasts for the 2025 Housing Market"},"content":{"rendered":"\n
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Wondering what\u2019s in store for the housing market this year? And more specifically, what it all means for you if you plan to buy or sell a home? The best way to get that information is to lean on the pros.<\/p>\n\n\n\n

Experts are constantly updating and revising their forecasts, so here\u2019s the latest on two of the biggest factors expected to shape the year ahead: mortgage rates and home prices.<\/p>\n\n\n\n

Will Mortgage Rates Come Down?<\/strong><\/h4>\n\n\n\n

Everyone\u2019s keeping an eye on mortgage rates and waiting for them to come down. So, the question is really: how far and how fast? The good news is they\u2019re projected to ease a bit in 2025. But that doesn\u2019t mean you should expect to see a return of 3-4% mortgage rates. As Lawrence Yun, Chief Economist at the National Association of Realtors<\/em> (NAR), says<\/a>:<\/p>\n\n\n\n

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\u201cAre we going to go back to 4%? Per my forecast, unfortunately, we will not. It\u2019s more likely that we\u2019ll go back to 6%.\u201d<\/em><\/p>\n<\/blockquote>\n\n\n\n

And the other experts agree. They\u2019re forecasting rates could settle in the mid-to-low 6% range by the end of the year (see chart below<\/em>):<\/p>\n\n\n\n

<\/a>But you should remember, this will continue to change as new information becomes available. Expert forecasts are based on what they know right now. And since everything from inflation to economic drivers have an impact<\/a> on where rates go from here, some ups and downs are still very likely. So, don\u2019t get caught up in the exact numbers here and try to time the market. Instead, focus on the overall trend and on what you can actually control<\/a>.<\/p>\n\n\n\n

A trusted lender and an agent partner will make sure you\u2019ve always got the latest data and the context on what it really means for you and your bottom line. With their help, you\u2019ll see even a small decline can help bring down your future mortgage payment.<\/p>\n\n\n\n

Will Home Prices Fall?<\/strong><\/h4>\n\n\n\n

The short answer? Not likely. While mortgage rates are expected to ease, home prices are projected to keep climbing in most areas \u2013 just at a slower, more normal pace. If you average the expert forecasts together, you\u2019ll see prices are expected to go up roughly 3% next year, with most of them hitting somewhere in the 3 to 4% range. And that\u2019s a much more typical and sustainable rise in prices (see graph below<\/em>):<\/p>\n\n\n\n

<\/a>So don\u2019t expect a sudden drop that\u2019ll score you a big deal if you\u2019re thinking of buying this year. While that may sound disappointing if you\u2019re hoping prices will come down, refocus on this. It means you won\u2019t have to deal with the steep increases we saw in recent years, and you\u2019ll also likely see any home you do buy go up in value after you get the keys in hand. And that\u2019s actually a good thing. <\/p>\n\n\n\n

And if you\u2019re wondering how it\u2019s even possible prices are still rising, here\u2019s your answer. It all comes down to supply and demand<\/a>. Even though there are more homes for sale now than there were a year ago, it\u2019s still not enough to keep up with all the buyers out there. As Redfin <\/em>explains:<\/p>\n\n\n\n

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\u201cPrices will rise at a pace similar to that of the second half of 2024 because we don\u2019t expect there to be enough new inventory to meet demand.\u201d<\/em><\/p>\n<\/blockquote>\n\n\n\n

Keep in mind, though, the housing market is hyper-local. So, this will vary by area. Some markets will see even higher prices. And some may see prices level off or even dip a little if inventory is up in that area. In most places though, prices will continue to rise (as they usually do).<\/p>\n\n\n\n

If you want to find out what\u2019s happening where you live, you need to lean on an agent who can explain the latest trends and what they mean for your plans.<\/p>\n\n\n\n

Bottom Line<\/h3>\n\n\n\n

The housing market is always shifting, and 2025 will be no different. With rates likely to ease a bit and prices rising at a more normal and sustainable pace, it\u2019s all about staying informed and making a plan that works for you.<\/p>\n\n\n\n

Let\u2019s connect so you can get the scoop on what\u2019s happening in our area and advice on how to make your next move a smart one.<\/p>\n","protected":false},"excerpt":{"rendered":"

Wondering what\u2019s in store for the housing market this year? And more specifically, what it all means for you if you plan to buy or sell a home? The best way to get that information is to lean on the pros. Experts are constantly updating and revising their forecasts, so here\u2019s the latest on two […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"categories":[1],"tags":[],"class_list":{"0":"post-1396","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-uncategorized","7":"entry"},"featured_image_src":null,"featured_image_src_square":null,"author_info":{"display_name":"fawn","author_link":"https:\/\/johnsonteamrealestate.com\/index.php\/author\/fawn\/"},"_links":{"self":[{"href":"https:\/\/johnsonteamrealestate.com\/index.php\/wp-json\/wp\/v2\/posts\/1396","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/johnsonteamrealestate.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/johnsonteamrealestate.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/johnsonteamrealestate.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/johnsonteamrealestate.com\/index.php\/wp-json\/wp\/v2\/comments?post=1396"}],"version-history":[{"count":1,"href":"https:\/\/johnsonteamrealestate.com\/index.php\/wp-json\/wp\/v2\/posts\/1396\/revisions"}],"predecessor-version":[{"id":1397,"href":"https:\/\/johnsonteamrealestate.com\/index.php\/wp-json\/wp\/v2\/posts\/1396\/revisions\/1397"}],"wp:attachment":[{"href":"https:\/\/johnsonteamrealestate.com\/index.php\/wp-json\/wp\/v2\/media?parent=1396"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/johnsonteamrealestate.com\/index.php\/wp-json\/wp\/v2\/categories?post=1396"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/johnsonteamrealestate.com\/index.php\/wp-json\/wp\/v2\/tags?post=1396"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}