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Housing Market Forecast: Unpredictable Mortgage Rates to Shake Up 2025

Appraisal Buzz

As 2025 draws near, mortgage rates are once again in the news. Zillow anticipates a more active housing market with more buyers obtaining the upper hand in 2025. As the market gradually recovers, 2025 should bring more sales and relatively moderate increases in property values. increase in property values in 2025.

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Targeting 2025’s 10 Top Housing Hot Spots 

Appraisal Buzz

The National Association of Realtors (NAR) has announced 10 top hot spots for the 2025 housing market based on economic, demographic and housing factors predicted to significantly impact local markets. 2025 Outlook NAR expects the Federal Reserve to maintain a gradual approach to easing monetary policy in 2025.

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Apartment Construction Projected to Reach Historic Highs in 2024

Appraisal Buzz

is expected to set new records for apartment construction. Notably, by the end of December, the combined metro areas of Dallas and Austin are predicted to welcome about 10% of all newly constructed apartments countrywide. On the other hand, some markets are seeing a slowdown in new construction starts due to the economic environment.”

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Has spring housing demand already started?

Housing Wire

For some time now, its been showing positive growth versus both 2022 and 2023 data, and, in the first few days of 2025, versus 2024 data as well. We are near the top of the 10-year yield and mortgage rates forecast for 2025. We have a slight single-digit increase in demand year over year. Still, I was happy to see growth.

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Homebuyer Competition Stiffens in the Northeast 

Appraisal Buzz

According to new Zillow research, Buffalo, New York, is projected to be the hottest major housing market in 2025. Construction that keeps pace with an areas growth remains a crucial piece of keeping homes available and accessible. But both buyers and sellers should expect unpredictable mortgage rates. Thats the good news.

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Mortgage rates continue their descent

Housing Wire

HousingWire Lead Analyst Logan Mohtashami recently wrote that higher mortgage rates “have increased recession risk by targeting the one sector that always falls before every recession: residential construction workers. trillion in origination volume in 2025, up from a projected $1.70 Data from the U.S. Census Bureau and the U.S.

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Pending Home Sales Climb to Highest Level Since March

Appraisal Buzz

Jones explained that pending home sales, also known as contract signings, measure the first official stage of a home sale transaction—when a buyer and seller have reached an agreement on terms and price. higher as buyers responded to slightly improved affordability in the new construction segment as well.

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