arhome realty blog

a positive real estate market outlook for 2025

As we step into the new year, the real estate market continues to evolve, presenting both challenges and opportunities. According to Lawrence Yun, chief economist of the National Association of REALTORS®, the market is on a positive path forward. Below are key factors shaping the 2025 housing market and what they mean for those looking to buy or sell their homes. 

1. rising home sales.

Home sales are expected to rise in 2025, driven by favorable market conditions that encourage increased activity. The rise in population hasn't matched the rise in home sales, signaling there is pent up demand and can indicate a strong market ahead. Additionally, the influx of new jobs further supports a positive housing outlook, as job growth typically correlates with a thriving real estate market.

2. leveling out of mortgage rates.

After many upticks in mortgage rates in recent years, experts predict that the rates should stabilize, but won't decline drastically.  While lower rates offer some relief to potential buyers, the current rates remain relatively high, which may discourage many from entering the market. Despite this, homeowners who secured lower rates in previous years may still face new life milestones/changes that will prompt them to buy or sell in the near future.

3. increasing inventory of homes for sale.

The market is experiencing a much-needed growth of new listings, both for new and existing homes. This increase in inventory, coupled with an improving economy, is expected to draw more buyers and sellers into the market. With more options available, buyers will have greater flexibility, easing some of the pressure that has characterized recent years.

4. increasing home prices, but at a slower pace.

Home prices will continue to rise in 2025, but the pace of growth is expected to slow compared to previous years of record numbers. This moderation is good news for buyers who have been grappling with affordability challenges. For sellers, this means your equity is predicted to remain stable. As more inventory of homes is projected to enter the market, home prices should rise at a slower pace than previous years. 

While predicting the exact trajectory of the housing market is a challenging task, industry experts offer valuable insights that help us anticipate potential trends and shifts. As we look ahead, increasing home sales, stabilizing mortgage rates, rising home prices, and a growing inventory of homes for sale are some key factors to consider. It's essential for prospective buyers and sellers to stay informed, work with knowledgeable professionals, and adapt to market conditions in order to navigate the ever-changing landscape of the housing market successfully.

talk to an arhome agent

Contact us for a free market analysis.

Source: National Association of REALTORS®.