Housing Market Forecast For 2025

This guide covers the housing market forecast for homebuyers for 2025.  The housing market forecast for homebuyers in 2025 may look different than it does today. According to recent predictions, total housing completions will likely decrease slightly in the coming year. While this may concern some, it is essential to note that the mix of housing types may change. This is what Lauren Wright, the President of The Wright Realtor, says about the housing market forecast for 2025 for homebuyers.

As we look toward a hopeful future for the local housing markets, there is a lot of anticipation and excitement for what lies ahead in 2025.

The ever-changing housing market has seen many rollercoaster rides over the past few years, and the forecast for 2025 is no different. Overall, the housing market forecast for May 2025 will likely look different than today. Total housing completions are expected to decrease slightly, but the mix of housing types is likely to shift. The shift in housing could be attributed to several factors, including changing demographics, rising home prices, and a growing preference for walkable neighborhoods.

The Housing Market Forecast for 2025 in the Number of Houses Being Built

The number of houses built in the US 2020 was 1.6 million, a record high reported to the National Association of Home Builders. This number is expected to drop slightly in 2025, with estimates ranging from 1.5 million to 1.7 million. The decrease in new construction could be attributed to many factors, including a decline in the availability of labor and building materials and a potential drop in demand due to economic uncertainty. Despite the expected decrease in total housing completions, the mix of housing types is likely to shift. Single-family homes are expected to remain the most popular type of housing in 2025. Still, the demand for other types of accommodation, such as apartments and townhomes, is likely to increase. This shift in the mix of housing types could be given to some factors, including changing demographics, rising home prices, and a growing preference for walkable neighborhoods. Speak With Our Loan Officer for Mortgage Loans

Housing Market Forecast For 2025

The housing market forecast for 2025  is also expected to be more competitive. With more people looking to buy houses, competition for the same properties will exist. This could mean higher prices and more opportunities for sellers to get a good deal. In addition to new construction, the housing market forecast for 2025 is expected to be influenced by technology.

Smart homes are becoming increasingly popular, which will likely continue into 2025. Innovative home technology can help buyers find the perfect house for their needs and help sellers market their properties more effectively.

Overall, the housing market in 2024 is expected to remain strong and continue its upward trend. With the anticipated increase in new construction and the influence of technology, the housing market is expected to stay competitive. This could mean higher prices for buyers and more opportunities for sellers to get a good deal. Home builders are seeing a rise in housing inventory. Due to a spike in inflation and high rates, home builders have been lowering prices on new homes and offering more incentives.

Housing Market Forecast in 2025 from a Realtors Perspective

The housing market, in general, has been a hot topic of conversation over the past several years, with the market experiencing a steady price increase since 2017. As we move into 2025, experts predict the market will remain steady and strong. This is great news for those looking to buy or sell a home shortly. But what does this mean from a Realtor’s perspective? Let’s look at the housing market forecast for 2025 and what it means for Realtors. Again, Lauren Wright of The Wright Realtor says the following:

The housing market forecast 2025, home prices will make a slight housing correction due to the growing home inventory. Inflation and high rates have taken a toll in home sales.  Seasoned real estate agents are seeing home prices will see in a drop in home prices due to several factors, including the FEDs lowering-interest rates, homes remaining longer in the market, and increase of housing supply.

Realtors will have an excellent opportunity to capitalize on the market. Those who can find great deals and negotiate favorable terms for their clients will be able to make a great living in the coming years. In addition to rising home prices, the housing market forecast for 2025 also predicts and equilibrium of homes as well a home prices. This means that Realtors will have plenty of opportunities to find buyers for the homes they are representing.

Housing Market Forecast Comparison of Homeowners Versus Renters

Buyers will be eager to buy homes in the coming years, therefore realtors must be prepared to find the best deals. Finally, the housing market forecast for 2025 predicts that the rental market will remain strong. This means realtors will have plenty of opportunities to find tenants for rental properties they are representing. Dino Hasapis, a veteran real estate agent with Compass Realty and an associate contributing editor at GCA FORUMS said the following:

Lenders should also take advantage of the current market conditions and provide competitive rates and terms to potential buyers. With the right approach, the housing market in 2025 should be strong and continue to be a great opportunity for homebuyers.

Realtors can capitalize on the market as demand for rental properties increases by helping landlords find quality tenants. Overall, the housing market forecast for 2025 is good news for realtors. The market is expected to remain strong, with prices rising and the need for housing remains high. Realtors will have many opportunities to make a great living in the coming years. Those who can find great deals and negotiate favorable terms for their clients will be in an excellent position to take advantage of the market.

Housing Market Forecast For 2025 from a Lenders Perspective

As we look ahead to the remainder of 2024, the housing market’s future is top of mind for many lenders. With the current market conditions, it can take time to predict the future. However, some key factors can help us understand the housing market in the coming years. One of the first things to consider is the current state of the economy. With the continued projected growth of the economy, the housing market is expected to remain robust and continue its upward trend. Lauren Wright of The Wright Realtor, a Chicago-Area real estate agent and an associate contributing editor at GCA FORUMS, adds the following:

One of the most significant changes to the housing market for 2025 is the decrease in new construction. This is due to the a over supply in home inventory and the extension of homes sitting on the market.

There needs to be an equilibrium of demand for housing and new homes to meet that demand. New construction is expected to be a significant driver of the housing market versus supply of homes in 2025.  This is good news for homebuyers meaning more affordable housing options for home buyers. The way the housing market was going since 2019 was not healthy. Home prices in many areas appreciated 50% or more. Such a out of control swing, even though it is an upward swing, breaks the housing and mortgage system and model. Everything that happened in the housing, mortgage, and credit markets was a recipe for disaster waiting to happen. Skyrocketing home prices, inflation out of control, historic high mortgage rates, and an economy with no sense of purpose and direction. Get Qualify For A Mortgage Loans, Click Here

How The Economy Determines The Housing Market Forecast For 2025

Coming out of the pandemic has greatly impacted the housing market, with many areas experiencing a decrease in home sales. Then within months, we had the reverse. A major boost in home sales, thus, spiking home prices where many homebuyers were priced out of the housing market. While this has been an unsettling time for many, it is also an opportunity for lenders to take advantage of the market and provide better financing options to potential buyers.

Another key factor to consider is the availability of financing and loan products. This is a great opportunity for buyers to take advantage of the market and get a better deal on their mortgage through creative financing.

In addition to the country’s current state of the economy and availability of financing, the housing market in 2025 will also be affected and determined by the current trends in home construction. With the demand for new homes increasing, builders will likely continue to build more homes in the coming years. This will help to keep the local housing market strong and competitive. New construction will help ensure an adequate supply of homes for potential buyers. Finally, it is also important to remember to consider the effect of the new tax laws.

Housing Market Forecast in 2025 and Tax Benefits For Homeowners

The tax laws have made it easier for homebuyers to deduct certain expenses from their taxes, such as mortgage interest and property taxes. This can keep costs down and help make owning a home more affordable for buyers, stimulating the housing market. Overall, the outlook for the housing market in 2025 is positive. Marga Jurilla, an associate contributing editor of GCA FORUMS Mortgage Group shares the following:

With the current economic conditions, availability of financing, and new tax laws, buyers should be able to take advantage of the current market and find the best home for their needs.

Marga Jurilla has successfully guided many homeowners through obtaining a home on both the lending and real estate side. She does not represent buyers or sellers but offers free consultation in 48 states at GCA FORUMS Mortgage Group by connecting homeowners, buyers, and sellers to the needed sources.

Housing Market Forecast For 2025 from a Mortgage Brokers Perspective

A mortgage broker provides lending, but they work alongside many wholesale mortgage lenders. Mortgage brokers are a powerful resource for borrowers as they can sometimes have hundreds of choices that are greatly in demand in the current market. A bank, credit union, or specific lender may only have one product to offer. Mortgage brokers has many lenders competing for their business with unique loan products. John Strange of GCA FORUMS Mortgage Group shares the following:

It may be one of those loan products that is the best financing alternative in this market, so it is wise to see what mortgage brokers are seeing for the remainder of 2024. Mortgage brokers say the housing market forecast for 2025 will likely remain strong despite a long overdue housing correction.

Hoping to see lower mortgage rates and increasing the demand for local housing will see home prices fall due to the sudden surge of home prices since 2019. Home builders have gone overboards and built too many homes. With the combination of large inventory of homes, high rates, soaring inflation, skyrocketing homeowners insurance premiums, surging property tax increases, and out of control homeowners association fee increases, a housing correction is a healthy thing for the housing market. Get connect With Our Expert for Your Mortgage Loans

Housing Market Forecast For First-Time Homebuyers

The current housing in some markets is also experiencing an increase in first-time buyers. With low mortgage rates and rising prices, first-time buyers may struggle to compete with more experienced buyers.  As the economy recovers and settles from the pandemic, more people will be looking to purchase a home, leading to increased competition and higher prices.

In addition to stabilization of home prices, mortgage brokers are hopeful that mortgage rates will lower in 2025. Low mortgage rates mean that buyers will be able to afford to borrow more money and will be able to have larger homes.

Stabilization in the housing, mortgage, and credit markets could further increase the demand for housing and drive up prices even more. Mortgage brokers are confident that first-time buyers will look for and find a home in 2025 as long as they are willing to be patient and take the time to find the right property. Overall, the housing market in 2025 is expected to remain strong, with prices continuing to rise and mortgage rates staying low. This is good news for homeowners and potential buyers, as they will have more options. However, it is important to remember that the housing market is unpredictable, so staying informed and prepared for any changes is important.

Housing Market Forecast in 2025 from the General Publics Perspective

With this in mind, it’s time to take a look at what the housing market forecast for 2025 is from the general public’s perspective. The current housing market forecast will stabilize in 2025. The way the housing market stands now is many homebuyers are priced out of the housing market due to the surge in home prices, the historic high rates, the high homeowners insurance, properties getting assessed by 40% or more which means increase in property taxes, and skyrocketing increases of homeowners association fees.

Overall, the current housing market is expected to correct and stabilize in 2025. Prices will stabilize to create an equilibrium in supply to meet demand.

This could lead a decrease in construction and development, which would help with the increasing housing inventory. We still have a large population growth increase and a housing supply shortage. However, people are priced out of the housing market and cannot afford to buy homes at these prices, rates, and surging cost of living due to inflation. The housing market is also expected to benefit from plans for infrastructure spending and tax incentives.

What is The Housing Market Forecast For 2025

The general outlook for the housing market forecast in 2025 is positive. However, some areas of concern could affect the market, such as rising interest rates or a potential economic downturn.  According to Danny Vesokie, President and CEO of Affiliated Financial Partners in Sacramento, California and an associate contributing editor of GCA FORUMS, explains the following:

It is essential to monitor the local and national markets and be prepared to make quick decisions if necessary. If you should decide to buy, before you begin looking for a home and during the process, we have vast experience working with buyers to get them ready to purchase their dream home.

We can take you through the entire financing process for your home loan. We also can connect you to title companies/attorneys and real estate agents in your area that can help as needed.  If you need to qualify and get pre-approved for a mortgage or have any questions about this guide on the housing market forecast for 2025, please contact us at GCA FORUMS Mortgage Group at 262-716-8151. Text us for a faster response.  Or email us at gcho@gustancho.com for more information and further assistance. The team at GCA FORUMS Mortgage Group are experts in business, commercial, and residential mortgage lending and has a national reputation for being able to do loans other lenders cannot do. Speak With Our Loan Officer for Mortgage Loans

FAQs on The Housing Market Forecast For 2025

Most FAQs About The 2025 Housing Market Forecast

What do you think will be the condition of the housing market in 2025?

• Market Trends: The 2025 housing market projection report states that further readjustment is likely after such extreme changes in the past years. Internal economic factors like inflation, interest rates, and economic growth will also determine the length and stability of the market.
• Home Prices: Home prices are likely to continue rising. However, due to economic conditions and housing supply constraints, this may be slower than in previous decades.
• Interest Rates: Interest rates are expected to remain stable or increase. This would reduce the affordability of mortgages, hence the demand for housing.

Considering the current economic climate, what are the prospects for the housing market in 2025?

• Inflation: A high inflation rate normally impedes housing demand and purchasing power. The rise in materials and labor costs could discourage new or renovation building projects.
• Employment: GDP and the rate of employment work hand in hand when it comes to the housing market. When the economy is doing well, people look for houses.
• GDP Growth: There is purchasing power that cannot be ignored during economic growth. This consumer spending may affect the housing market.

As the economy picks up, it is common to see the market experienced a surge in home prices and activity.

Which particular activities do you believe the customers and the clients will consider that will be in place in the year 2025?

• Technology Integration: The use of more technology in current real estate transactions, such as virtual tours and enhanced closing processes, is likely to increase.
• Sustainability: In connection with this change in the allocation of considerable increases towards green energy, the import of green built-in homes might increase.
• Urban vs. Suburban: There has also been a shift in preferences towards living in cities and city suburbs, which is expected to continue, for example, with more people working from home.

What do you imagine would be the consequences of the rehousing market rates in 2025?

• Sensitivity to Mortgage Rates: In such attention-grabbing periods where interest rates are negative, if the interest rate increases, then the homeowner’s monthly obligations on the mortgage bonds scale up, too. This may cause scarcity in the market demand & slow the rise in real estate pricing.
• Sensitivity to Affordability: Additionally, the fact that rates will increase may be unhelpful for most buyers, which will, in turn, affect their ability to purchase and the market.

What aspects would you change, modify, and work on concerning home prices in 2025?

• Supply and Demand:  If there are housing supply constraints in an area and there is high demand in that area, then the prices will go up. On the other hand, the rise in the housing inventory may stabilize the prices or turn them downwards.
• Economic Policies: Some government policies on the housing market, like the mortgage interest tax relief and housing policies, affect housing prices.
• Population Growth: In regions with rapid population growth, there is likely to be an upsurge in demand for housing, which will result in the exploitation of the area.

Is 2025 the year I should go ahead and buy or sell my house?

• Buyers: Consider your budget, objectives, and the current situation in the real estate market. When interest rates are reasonable, and you see a property right for you, it’s probably a great time to buy.
• Sellers: Analyzing new construction and building investment market trends is also necessary. If home values are high and you wish to move, for example, it may be a good idea to sell sooner rather than later.

Where can I understand where the housing market is heading in 2025?

• Market Reports: Housing market statistics have become available thanks to many trustworthy sources, including internet marketing companies, daily economic reports and forecasts, and annual and industry reports.
• Professional Advice: Consult practitioners in real estate, such as real estate agents, mortgage brokers, and financial planners, as they request the status and future of the market.

How can I look ahead and avoid possible changes in the housing market?

• Financial Preparation: Financial discipline is also needed, such as considering parameters like credit score, down payment, and debt-to-income ratio.
• Market Research: Always be personally knowledgeable of regional and national trends so that you are happy with events when buying or selling.

Speak With Our Loan Officer for Mortgage Loans