As we enter 2025, buyers, sellers, and real estate industry professionals ask the same questions: What can we expect this year? How will mortgage rates evolve? Will housing prices stabilize? And will technology continue to shape the market?
Whether you plan to invest in real estate, list your properties, or purchase your first home, staying updated about the market predictions will help you make informed decisions.
In this blog, we’ll dive into key predictions for the real estate market in 2025, exploring everything from housing and mortgage rates to the role of technology. This guide will provide valuable insights for real estate agents and their clients. So, get ready to discover how you can adapt to the evolving market in 2025!
Mortgage Rates Set To Stabilize
Mortgage rates are a crucial factor when it comes to home buying. Why? Because they directly influence the loan of money needed to purchase the property. These rates determine the interest you’ll pay on your home loan.
In December 2024, mortgage rates dipped to 6.84 percent, undoubtedly an improvement, but it’s not the result many hoped for. However, many experts predict mortgage rates will go lower over the next year.
Jessica Lautz, deputy chief economist and vice president of research at the National Association of Realtors (NAR), recently told CNBC that experts expect rates to reach the 6% range by 2025.
What Does It Mean For Realtors?
A 6% mortgage rate brings both opportunities and challenges for realtors. Higher mortgage rates can make it difficult to find affordable homes, particularly for first-time buyers or those on a tight budget, which poses a challenge and may lead to slower home sales. However, for experienced realtors, this situation also allows them to showcase their expertise by offering buyers options that simplify the home-buying process.
Additionally, higher rates could encourage homeowners to stay put, resulting in more opportunities in rental and investment property markets. Realtors who can educate their clients on market trends and position themselves as trusted agents will be well-equipped to succeed even in a tighter housing market.
Will Home Prices Increase?
Experts predict home prices will increase by 2% in the upcoming year. Although this rise is smaller than the significant fluctuations we have seen in the real estate market, the expectation is a stabilized market.
This stabilization means homes are still within reach for buyers, though competition in the popular area may keep the prices slightly elevated. Sellers can anticipate steady returns, particularly those who bought homes during the low-price period.
A 2% price increase points to a more balanced and calm environment for sellers and buyers; understanding these trends will eventually result in more tremendous success.
More Home Sales Than 2024
After a challenging 2023 and 2024, home sales are expected to rise in 2025. According to NAR reports, new home sales will increase by 11% this year. By the end of 2025, buyers are expected to buy about 4 million homes.
Many buyers are expected to enter the market next year actively, but the competition will likely be less fierce than in recent years.
Why have home sales increased? Lawrence Yun, the chief economist of NAR, predicts that many Americans will take action as job and stock numbers increase. He also predicts an increase of 2 million more jobs in 2025, which could positively impact the market, as more jobs often mean more people can afford to buy homes.
For realtors, the rise in home sales brings fresh opportunities to grow their business and support more clients in achieving their goals.
Top Cities Set To See A Surge In Home Sales
According to a report from Realtor.com, these are the top 20 cities expected to have the most significant jump in home sales in 2025:
- Colorado Spring, CO
- Miami, FL
- Virginia Beach, VA
- Richmond, VA
- McAllen, TX
- El Paso, TX
- Little Rock, AR
- Greensboro, NC
- Washington, DC
- Harrisburg, PA
- Baltimore, MD
- Charlotte, NC
- Orlando, FL
- Atlanta, GA
- Akron, OH
- Austin TX
- Augusta, GA
- Durham, NC
- Denver, CO
- Jacksonville, FC
The reasons these cities are in the top 20 vary, from houses being affordable and family-friendly compared to other areas. Realtors should focus on these areas’ key features and showcase them for exceptional growth.
Technology Still Leading Real Estate
Technology continues to shape the real estate market and is predicted never to stop. With tools making every process more manageable, no realtor can aim for success without it.
Tools like IDX integration, CRM systems, and data analytics empower real estate agents like never before. They help reach a broader audience, generate leads, and close deals.
Technology has simplified the home search process for buyers with online listings, virtual tours, and even AI recommendations based on personal preferences. And for sellers, advanced marketing strategies and automated systems help target the right audience.
In this time and age, technology is no longer just a tool; it’s a driving force behind the industry’s continued growth and success. It makes every transaction as easy as a breeze.
New Year, New Leads With Oley
While the year may have changed, our team’s commitment to providing our clients with remarkable service remains the same. We aim to create the most exceptional websites for realtors to generate more leads than ever.
Why Are Our Websites The Best?
Imagine having a website that does everything without the heavy price. With Oley, you don’t have to imagine. And that’s why we’re the best in the business!
Our IDX-integrated websites are customizable, stunning, and perfect for showcasing your listings and getting the most clients.
So, what are you waiting for? Get Started Today!
Explore our pricing plans, find the perfect fit for your needs, and book a free demo to see how we can help you thrive in the business.
Let this year be where your business takes off with Oley by your side!
2025 Awaits: Ready For The Shift In Real Estate Market?
As we enter the new year, the market changes require strategic thinking and adaptability. With mortgage rates stabilizing and home prices seeing modest growth, staying updated on all these changes is the key to the utmost success.
With the proper knowledge and approach, 2025 could be a year of growth and success for all involved in the real estate world. Luckily, the Oley team is here for it all. From providing you with the perfect knowledge to providing you with our services to enhance your digital presence, we’ve got you covered.
Partner with us now and see the results yourself!
