Learn how interest rates, inventory, and home prices will affect 2025.

As we approach 2025, it’s important to understand what to expect from the real estate market. Whether you're planning to buy, sell, or invest, these are the three key things to keep in mind that will shape the market in the coming year.

1. Interest rates. In 2024, interest rates peaked at around 7.5% before dropping to about 6.5% by the end of the year. Looking into 2025, economists predict that interest rates will remain relatively high, hovering between 6.25% and 7%. The days of low interest rates around 3% or 4% are no longer expected to return in 2025. 

"Navigating the 2025 real estate market will require careful planning."

2. Inventory levels will increase. For buyers, there's good news: inventory is expected to increase in 2025. This marks a significant shift from the inventory shortages seen in recent years. More homes will be available for sale, providing more choices for prospective buyers. However, sellers should be aware that with increased inventory comes more competition. It will be important to keep an eye on the condition and pricing of your home to stand out in a more competitive market.

3. Stagnant home prices. Economists predict that home prices will be relatively stagnant in 2025. Unlike the rapid appreciation seen in past years, prices should not increase significantly. However, no major price decreases are anticipated either. This means the market won't experience the sharp rises we've seen recently, but prices are not expected to fall. 

Navigating the 2025 real estate market will require careful planning and an understanding of these trends. One key factor in ensuring success is working with a knowledgeable agent who understands local market dynamics. Whether buying, selling, or investing, the right agent can provide expert guidance and help you make informed decisions. For personalized advice, feel free to contact me at 330-417-3144 or email me at jose@josesellshomes.com. Let's make 2025 your best year yet!