The short answer: no one knows.
After an extremely sluggish December – the slowest in five years with homes on the market for an average of 70 days – exerts don;t see much hope for a quick turnaround.
Mortgage rates are expected to hover around 6.3% in 2025 which will keep current homeowners locked-in to their homes with little incentive to sell.
Home prices are projected to increase by 3.7% after a 4% rate in 2024. Not exactly what would-be buyers want to see.
Will there be a “Trump bump” this time around with an easing of regulations or will the threat of tariffs and stricter immigration policies hurt the housing industry?
Time will tell.