As we look ahead to 2025, the nationwide housing market is expected to show signs of improvement, offering a mix of opportunities and challenges for both buyers and sellers. Several reputable sources have weighed in with their projections, painting a picture of a market that's gradually becoming more balanced.
Zillow, a leading real estate platform, forecasts a modest 2.6% increase in home values for 2025, mirroring the growth seen in recent years. They also anticipate a slight uptick in existing home sales, projecting 4.3 million transactions in 2025, up from the expected 4 million in 2024. This suggests a market that's slowly regaining momentum after a period of stagnation.
The National Association of Realtors (NAR) presents a more optimistic outlook, predicting a 9% rise in existing home sales for 2025. Lawrence Yun, NAR's chief economist, attributes this potential growth to improving job numbers and recent gains in the stock market, which could motivate more Americans to enter the housing market.
However, it's important to note that these projections come with caveats. The Mortgage Bankers Association (MBA) forecasts a somewhat sluggish economy through 2027, which could impact the housing market. Mortgage rates will play a crucial role in shaping market conditions, with some experts anticipating potential rate cuts in 2025.
For potential buyers, there's a silver lining on the horizon. Zillow suggests that more inventory should become available in 2025, providing buyers with increased options and potentially more leverage in negotiations. This could signal a gradual shift towards a more balanced market, offering some relief from the intense seller's market we've experienced in recent years.
As we approach 2025, it's clear that the housing market will continue to evolve. While challenges persist, the overall outlook suggests a market that's slowly stabilizing and potentially offering more opportunities for both buyers and sellers. As always, local market conditions may vary, and it's essential for both buyers and sellers to stay informed about their specific area's trends and work closely with a knowledgeable real estate professional.