What’s Ahead for the 2025 Housing Market?
With 2025 officially underway, the housing market is already showing signs of exciting opportunities and challenges for both home buyers and home sellers alike. It seems everywhere you turn, you're hearing something about housing prices or mortgage rates.
Here's a closer look at the trends and what they could mean for you and your real estate goals in 2025.
Home Prices: Steady Growth
Experts predict home prices will grow by a steady 2.6% in 2025, maintaining the pace we saw in 2024. This consistent growth can provide a sense of stability for buyers and sellers alike, making it easier to plan ahead.
The average home cost in the US in 2024 was : $416,100. Wondering what the average home value in your neighborhood is? Click HERE for a personalized report of local home values.
Home Inventory: More Choices for Buyers
An increase in real estate inventory could give home buyers more options, potentially shifting the balance of power in their favor. If you’ve been holding out for your dream home, this might be your year to find it. Having a qualified pre-approval from a local mortgage broker and a strategic negotiation plan, you have a good chance of getting the deal you've been searching for.
For sellers, this means a more competitive real estate market, making it essential to stand out. From competively pricing your property, a startegic marketing plan and a local REALTOR- plan for success.
Smaller Homes in Demand
Smaller homes are expected to be a hot commodity as homebuyers adjust their wish lists to align with changing needs and their budget. Whether it’s a downsizing trend or a move toward housing affordability, this shift could redefine the market landscape.
The average size of a single-family home in the United States in the first quarter of 2024 was 2,140 square feet, according to the U.S. Census Bureau. This is a decrease from the first quarter of 2023, when the median size was 2,256 square feet.
Mortgage Rates: Seeking Stability
Mortgage rates remain a wildcard, but stability in rates could bring some much-needed predictability to the housing market in 2025.
For buyers, stable mortgage rates may make jumping into the real estate market less daunting. Home buyers will be able to more clearly determine their housing budget, leading to the ability to focus on finding the right property to purchase.
For sellers, it could mean more confident buyers ready to make decisions. In 2024, the average Days on Market (the number of days a home is listed for sale before going under contarct with a buyer) was 61 days. In 2024, 31.1% of homes in Pennsylvania sold above list price, which was a 2.3 point decrease from the previous year.
Wondering what your mortgage options are in 2025? Click here to learn more about a mortgage to purchase a home, refinancing your mortgage or just to get some answers to questions you may have about the mortgage process.
What Does This Mean for You?
For Home Buyers:
2025 could be your year to find a home that meets your needs and fits your budget. With more inventory and potentially stable mortgage rates, now is the time to:
● Keep an eye on the housing market for opportunities that align with your 2025 goals.
For Sellers:
With increased competition in the real estate market, standing out in the housing market will be more critical than ever to a successful sale. To make your property shine, you should:
● Invest in professional staging to highlight your home’s best features.
● Partner with an local REALTOR who can craft a tailored marketing strategy.
Making 2025 Your Year
The housing market is always evolving, but with the right strategy, you can navigate the changes and make confident decisions. Whether you’re buying your first home, upgrading, or selling, preparation is key.
Source: HousingWire.com
The Zack Grimmer Group, Powered by Real, is a Residential & Commercial Real Estate and Mortgage Team that was founded in 2021 by Zachary ‘Zack’ Grimmer. We assist our clients who are looking to BUY, RENT, SELL or INVEST in real estate throughout Pennsylvania, New Jersey, Florida and Maryland! We are tech-enabled and data-driven, giving our team the necessary tools to successfully broker real estate in any market. Our mission is to provide white-glove service to our clients and investors. Browse our website at www.ZackGrimmerGroup.com to learn more about all the real estate services we offer to our community.
Please feel free to contact us at admin@ZackGrimmerGroup.com or (215) 667-0239 or follow us on Facebook & Instagram, to learn more.
