Real Estate Rookie

HousingWire’s 2025 Housing Market Predictions: Rates, Prices, and More

Dec 30, 2024

Mike Simonsen, an analyst from Altos Research and HousingWire, dives into predictions for the 2025 housing market. He discusses the potential for mortgage rates to dip below six percent and the rise in housing inventory. Mike examines the impact of economic uncertainties, migration trends, and job transitions on home sales. With optimistic projections, he highlights a key metric to watch for gauging market direction. If you're a buyer or seller, this insights-packed conversation is a goldmine for understanding upcoming changes!

36:37

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Mike Simonsen

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Quick takeaways

Mortgage rates in 2025 are expected to fluctuate between 6% and 7%, influenced by economic conditions and buyer demand.

The housing inventory is anticipated to rise due to decreased demand, leading to a potential stabilization in home sales and pricing.

Deep dives

Predictions for Mortgage Rates in 2025

Predictions about mortgage rates for 2025 suggest they may fluctuate within the range of 6% to 7%. Analysts expect a slightly slowing economy might reduce rates, allowing for brief dips below 6%, but confidence in consistent lower rates is lacking. The interplay between interest rates and the economic landscape remains crucial, as sustained high rates could hinder housing demand. Observations indicate that despite expectations at the beginning of 2024 for rates to decline, they remained stubbornly high, impacting home sales and overall market dynamics.

Intro

4min

Shifts in Housing Inventory and Migration Patterns

7min

The Great Stay: Housing Market Predictions

11min

Navigating the Future of Housing Markets

4min

Housing Market Trends Towards 2025

7min

It’s the season for housing market predictions, and we know who to call! Altos Research and HousingWire’s Mike Simonsen joins the show to share where his team thinks mortgage rates, home prices, housing inventory, and buyer demand will be in 2025. Every year, the HousingWire team puts together a phenomenal housing market forecast, touching on the topics investors, agents, lenders, and housing nerds care about while recapping the wildest surprises of the year prior.

Will mortgage rates finally fall below six percent in 2025? Will home prices dip with housing inventory up a substantial percentage year-over-year? And could agents and lenders finally get some relief with home sales, or will we still see sluggish purchasing and buyer activity? Not to spoil it, but Mike is optimistic about the 2025 housing market and what will come over the next twelve months.

Mike breaks down each prediction and what could affect YOU the most, whether you’re buying or selling homes. Plus, he shares the one metric his team is watching carefully to see which direction the 2025 housing market is headed.

In This Episode We Cover:

HousingWire’s 2025 housing market forecast and 2024 housing market recap

The mortgage rate range you can expect over the next twelve months

Home price growth and exactly how much the HousingWire team expects in 2025

Why housing inventory is starting to climb again (and whether it will continue in 2025)

One metric Mike and his team are paying very close attention to in 2025

The market’s reaction to the 2024 election and President-Elect Trump’s win

And So Much More!

Links from the Show

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