On The Market

Redfin’s 2025 Housing Market Predictions (Home Prices, Mortgage Rates, & More)

Dec 23, 2024

Redfin has unveiled its intriguing 2025 housing market predictions, suggesting a 4% rise in home prices due to low inventory. While home prices may climb, mortgage rates are expected to stabilize around 7%. Good news awaits home sales, with a strong uptick anticipated. Renters might see some relief as increased supply could make rents more affordable. The podcast also explores generational shifts in homeownership, particularly how Gen Z may rethink the American dream. Insights on homebuilder optimism and marketplace dynamics round out the discussion.

33:15

Creator website

AI Summary

AI Chapters

Episode notes

Podcast summary created with Snipd AI

Quick takeaways

Home prices are projected to rise by 4% in 2025 due to persistent demand outpacing limited housing supply.

Mortgage rates are expected to remain near 7% throughout 2025, affecting affordability and discouraging dramatic drops in homebuyer interest.

Deep dives

Predicted Home Price Growth in 2025

Home prices are expected to rise by 4% in 2025, according to recent analysis. This projection is based on the belief that demand will continue to outstrip supply, as there isn't anticipated to be enough new inventory entering the market to meet potential buyers. Historical trends support this prediction, as prices have steadily increased over the past several years, even amid high interest rates. Many forecasters agree with this outlook, anticipating that price growth will align closely with inflation rates, making a 4% increase seem realistic.

Intro

2min

Predictions for 2025: Home Prices and Mortgage Rates

11min

Predictions for 2025: Home Sales and Renting Trends

4min

Forecasting the 2025 Renter's Market Dynamics

2min

Housing Market Insights and 2025 Predictions

12min

Redfin just released their highly-anticipated 2025 housing market forecast, and today, we’re reacting to each of their ten crucial housing market predictions. We’re touching on the exact numbers you want to hear about—home prices, mortgage rates, home sales, rent prices, and housing supply. Knowing what’s coming could give you an edge as an investor, agent, or first-time homebuyer.

First, we’re reviewing Redfin’s home price predictions for 2025. Will things get any more affordable, or will high home prices persist into 2025? Will mortgage rates finally reach the low sixes, maybe even into the high fives? Dave disagrees with Redfin’s take on interest rates, so where does he think they’ll be headed?

If you’re a real estate agent, broker, loan officer, or in the industry, listen up! Redfin has some good news you want to hear about home sales! Renters and landlords, take note—Redfin’s predictions suggest rents could become more affordable for everyday Americans. But that’s not all; we’ll also review their housing inventory, agent commission, and migration predictions for 2025!

In This Episode We Cover

Redfin’s notable 2025 mortgage rate prediction that most homebuyers DON’T want to hear

2025 home price forecast and whether or not we’ll continue to see prices climb

The “step in the right direction” for home sales coming in 2025

Why homebuilders are getting bullish thanks to the 2024 Republican sweep

Why Gen Z may be the first generation to give up on homebuying

And So Much More!

Links from the Show

Join the Future of Real Estate Investing with Fundrise

Join BiggerPockets for FREE

Find Investor-Friendly Lenders

Dave's BiggerPockets Profile