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.
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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.
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