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Home prices in 2025 are a couple percentage points above where they were last year at this time. One reason that home prices have stayed elevated is that inventory nationally is still restricted. But if current trends continue, the inventory shortage will be effectively gone by next spring. is more like 5% per year.
As the year draws to a close, available unsold inventory of homes on the market is nearly 27% greater than a year ago. Ten states have more inventory unsold than in 2019, which was the last sort of normal year before the pandemic. Inventory is still very tight in places like Chicago and New England, but it is rising in these markets.
However, there are two big trends that stand out as we launch into 2025 affordability and sellers in the market. In 2025, housing affordability in the U.S. That growth is in jeopardy if we stay at the high end of the mortgage rate range into the first quarter 2025. The elephant in the room is affordability.
New home sales grew over last month in the latest Census report , but homebuilders are now facing a supply issue their inventory is building up. This situation poses a risk to construction labor in 2025. Is 2025 the first year we start losing residential construction jobs? percent (18.6 percent (19.3
Better mortgage spreads are limiting how high rates can rise in 2025. Today, I want to explain why this topic is essential as we look ahead to the rest of 2025. However, spreads have improved in 2024 and 2025, which is helping to limit how high mortgage rates can go this year. In 2023, spreads reached as high as 3.10%.
Rising housing inventory levels in 2024 may not be the positive sign of market health that they appear to be. High inventory levels contribute to another problem as active listings are remaining unsold for longer periods. Redfin refers to these listings as “stale inventory.” ” According to the report, 54.5%
“Despite higher mortgage rates in November and persistent affordability challengers, buyers took advantage of more inventory as pending home sales reached the highest level in nearly two years. Buyers appear to be done waiting for rates to fall, prompting them to enter the market to take advantage of higher inventory levels.
What will the housing market look like in 2025? We already see many signals for what to expect, including last week’s data on inventory , new listings and price reductions, which I analyze below. For a more comprehensive look, read our 2025 Housing Market Forecast covering home prices, home sales volumes and more.
As we look into 2025, the question everyone is asking is: Do we have a new era starting? We know inventory has been climbing all year. The northern cities have tight inventory and rising prices, some of the Sunbelt cities have the most inventory in many years, and some markets even have falling prices, too.
Despite 2025 housing market predictions changing fast , there are still key themes and trends for real estate leaders to watch to best serve their clients and business. HW: What housing trends do you think will continue in 2025 and why? JL: Housing inventory has been climbing in recent months.
Key Takeaways Interest rates should continue to decrease in 2025. Housing inventory will likely still be low in 2025, and demand could increase. Will Interest Rates Go Down in 2025? Good news: Mortgage rates will likely continue going down in 2025! Will the Housing Market Crash in 2025?
Realtor.com has revealed its Top Housing Markets for 2025 , highlighting the areas ready for growth in the year ahead. Inventory on the Rise While the nations housing inventory remains a challenge, a recovery is underway, with the number of homes for sale in November notching the highest mark since December 2019.
While some of those markets have since seen a reversal of fortunes, 2025 may bring a few more surprises. Locked-in mortgages have been widely credited with cutting off housing inventory. NAR expects the Midwest revival to continue in 2025, as Indianapolis and Grand Rapids, Michigan, are among 10 metro areas listed.
Forecasts for the housing market in 2025 are not that rosy, but Ryan McKeveny and Brian Hale see this as a good thing for the years ahead. Housing inventory is key Inventory is important in making the housing market more affordable, but it’s more complicated than just building more houses, McKeveny said.
Given the current housing inventory crisis, it might surprise people to realize this: we built too many homes during the housing bubble years. Yes, but this is where my work is much different from other housing economists and why we need to think of inventory in a new, modern 21st-century mindset. Wait, what?
Redfin cited a number of reasons for this increase in the nations housing inventory, including: The mortgage rate lock-in effect is fading: A number of homeowners who scored low mortgage rates during the pandemic have been staying put because moving would mean taking on a higher rate. month-over-month, and 4.7% year-over-year.
Unsold inventory of homes for sale has been on the rise all year. It hasn’t turned the corner yet — inventory rose across the country this week — but at less than 1% rate. There are some signs that inventory growth is slowing with newly lower mortgage rates and the end of the summer. Texas inventory grew by 1.5%
Recently, weve shared that the inventory of unsold homes is growing. There are already plenty of markets nationwide where the inventory of unsold homes has built up over the past few years and home prices have ticked down. Lets take a look at the data for the third week of January 2025. this week is $421,000. It is negative.
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. More inventory should shake loose in 2025, giving buyers a bit more room to breathe.” increase in property values in 2025. Zillow predicts 4.3
real estate market were for inventory growth, sales growth and home-price growth across the U.S. Of my initial expectations this year — rising inventory, rising sales rates, rising prices — only rising inventory remains clear at this moment as we finish Q1 with rising interest rates. As we started 2024, the signals in the U.S.
Home price growth in the second quarter was stronger than previously anticipated, but economists at Fannie Mae believe it will likely moderate soon, closing 2024 and 2025 at annualized rates of 6.1% Fannie also forecasts refi volumes to grow to $563 billion in 2025 as home prices continue to rise and mortgage rates fall.
Unsold inventory of homes on the market has been climbing in the U.S. In general, inventory rises with rates because more expensive money slows demand. When demand slows, inventory grows. Inventory is climbing but it’s still pretty restricted. And importantly, inventory isn’t growing everywhere equally.
Zillow is predicting a more active housing market in 2025 , but those hoping to buy — or even refinance — should buckle up for a bumpy ride and be ready to move when conditions are right. More inventory should shake loose in 2025, giving buyers a bit more room to breathe. For existing home sales, Zillow forecasts 4.3
Dramatic mortgage rate movements are destined to play a major role in the coming year, according to Zillow ‘s newest forecast , which also calls for declining mortgage rates to be a catalyst for home-sales growth and home-price appreciation in 2025. “There’s a strong sense of dj vu on tap for 2025. million in 2025.
According to Zillows estimate, a prediction of gradually falling mortgage rates in 2025 portends modest growth in both sales and home price appreciation. By 2025, that figure ought to increase somewhat to 4.16 In 2025, home prices are expected to increase by 2.2%, which is exactly in line with the 2.3% million sales in 2024.
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.
The 2024 housing market is shaping out to be one of the slowest in recent memory, but what can the industry expect in 2025? HousingWire Lead Analyst Logan Mohtashami and Altos Research Founder Mike Simonsen have compiled a comprehensive forecast for the 2025 housing market. million in existing home sales in 2025. million).
TD: There will be an uptick throughout the rest of 2024 and into 2025 due to a deficit of 5-7 million homes. Ground-up construction growth will be high to meet the population growth and meet the demand due to limited inventory. HW : The fix-and-flip market continues to see strong demand despite inventory challenges.
Given the current housing inventory crisis, it might surprise people to realize this: we built too many homes during the housing bubble years. Yes, but this is where my work is much different from other housing economists and why we need to think of inventory in a new, modern 21st-century mindset. Wait, what?
It was the 10th straight month of annualized growth and for-sale inventory is now at its highest level since May 2020. Shoppers, who are out this fall, are likely to face lower competition than is expected in spring 2025 as more shoppers anticipate better mortgage rates.” less than the average August from 2017 to 2019.
The number of office-to-apartment (O-to-A) conversions is on the rise, and by 2025, there will be about 71,000 units planned, breaking new records. Only 3,709 of the 55,339 office-to-apartments that were in some stage of development in January of last year were finished by December, meaning that 51,630 units remained unfinished until 2025.
As 2025 approaches, the U.S. Despite Fed cuts, mortgage rates remain stubborn One of the most glaring contradictions as we head into 2025 is the persistence of high mortgage rates despite efforts by the Federal Reserve to cut interest rates in late 2024. real estate market is marked by contradictions that are leaving many confused.
Auction.com has released its 2025 Distressed Market Outlook , which forecasts foreclosure auction volume decreasing 8% in 2025 as a baseline scenario. Those two scenarios have foreclosure auction volume increasing in 2025. This data provides forward-looking insight into retail housing market trends.
Housing Market Supply and Demand: An analysis of housing inventory trends and construction pressures affecting pricing and availability. Department of Labor’s Unemployment Insurance Weekly Claims Report (Thursday) The post The Week Ahead: Preparing for 2025 first appeared on The MortgagePoint.
If 2024 was a rollercoaster, 2025 is shaping up to be a championship gameand every buyer , seller and homeowner has a shot at winning big. Whether youre looking to buy your first home, upgrade or simply gain clarity on the current market , this guide is your insiders playbook to tackle 2025 with confidence. The key takeaway?
housing market was relatively slow in 2024, experts say the luxury sector was an outlier and they are anticipating even stronger conditions in 2025. According to The Trend Report released Monday by Coldwell Banker s Global Luxury program, the brands luxury property specialists expect more luxury buyers to reenter the market in 2025.
In 2025, mortgage rates have ranged between 7.26%-6.64%. However, as mortgage rates started to rise late into 2024 and have stayed elevated in 2025, that has facilitated a slight but consistent decline in pending sales year over year. With that in mind, read my labor model for 2025 after the jobs report on how you get there!
10-year yield and mortgage rates In my 2025 forecast, I anticipate the following ranges: Mortgage rates will be between 5.75% and 7.25% The 10-year yield will fluctuate between 3.80% and 4.70% So far in 2025, we have consistently been near the upper end of the year’s forecast.
The NAR president and Massachusetts native then took NAR members on a walk down memory lane to explain the trade group’s priorities for 2025. “In So, as I look to 2025 and where we want to go, it is to stick to the basics. We protect consumers when we educate decision-makers about issues about inventory.
Altos Research tracks every home for sale in the country every week all the active inventory and pending sales as they happen as well as prices and supply and demand metrics Lets look at this weeks data. Inventory fell There are 635,000 single-family homes unsold on the market now. In 2018, mortgage rates and inventory rose all year.
The unsold inventory of homes on the market across the country is 28% greater than last year at this time. Withdrawals keep a lid on inventory growth. That suggests a shadow inventory of homes that want to be sold but the market isnt there for it. Are there any signs of sales growing for 2025? Something to watch.
mortgage originations are projected to grow moderately in 2025, despite continued economic uncertainty and elevated interest rates, according to TransUnion s newly released credit insights in the fourth quarter of 2024. million in 2025 from approximately 4.6 million in 2024, with the bulk coming from purchase loans.
As the new year draws near, Fannie Mae anticipates that many of the housing trends from 2024 will persist in 2025, with the lock-in effect of mortgage rates and housing affordability continuing to be major obstacles for countless Americans. In 2025, economists predict that the average mortgage rate will continue to be higher than 6%.
These were just some of the suggestions shared by Mike Simonsen, founder and president of Altos Research at HousingWire s 2025 Housing Economic Summit held in Dallas on Wednesday at the George W. But there is also a 28% surge in inventory compared to this time in 2024, though the inventory increases are not evenly distributed nationally.
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