This will undoubtedly be the first of many housing market forecasts for 2025 and – surprise! – the outlook is mixed, as they say.
Starting with mortgage rates, it’s believed they will hover around 6.3% in 2025. A bit disappointing, to be sure, but better than the current 6.7%.
And, staying with disappointing (at least for buyers), home prices are projected to increase by 3.7% next year, down a bit from the 4% rise in 2024.
And, finally, a bit of good news! The supply of homes is expected to rise by 11.7% in 2025 with new home construction adding 1.1 million units next year.