In 2025, the housing market is expected to experience some important changes, influenced by factors like mortgage rates, home prices, and political shifts. With Donald Trump’s return to the presidency, there could be significant changes in policies affecting housing, including potential tax cuts and deregulation, which might impact mortgage rates and home affordability.
Key Points of the 2025 Housing Forecast:
Mortgage Rates and Home Prices
• Mortgage rates are expected to remain relatively stable.
• Home prices will continue to grow at a slower pace of 3.7% due to increased home inventory, which could balance out price pressures caused by lower mortgage rates.
Home Sales
• A slight increase in home sales is anticipated, with a growth rate of 1.5% over 2024.
• Both buyers and sellers are sensitive to changes in mortgage rates, leading to more activity as rates decline.
Inventory
• Home inventory is expected to rise by 11.7% compared to 2024.
• Most inventory increases will occur in the spring and summer, as declining mortgage rates make selling and buying homes more attractive.
Source: Realtor.com
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Shirin Rezania Ramos | 858.345.0685 | www.shirinramos.com | Compass, DRE 0203379
