NerdWallet's Smart Money Podcast
2025 Real Estate Trends: What Homebuyers and Sellers Need to Know
Jan 23, 2025
Holden Lewis, a NerdWallet mortgage reporter, shares his expertise on navigating the complex housing market of 2025. He discusses crucial tips for homebuyers in a high-rate environment, emphasizing the importance of mortgage pre-approval and budgeting for rising insurance costs. For sellers, Holden highlights the value of curb appeal and professional staging to attract buyers. The conversation also delves into broader trends, including the effects of 'rate lock-in' and new real estate agent commission rules, providing listeners with valuable strategies for buying and selling.
23:50
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Quick takeaways
- In 2025, navigating the housing market will require buyers to prioritize pre-approval and budgeting amidst high interest rates and limited inventory.
- Sellers can enhance their chances in a tight market by improving curb appeal and understanding new commission structures for real estate agents.
Deep dives
Current Housing Market Challenges
The housing market is currently facing significant challenges, primarily due to high mortgage interest rates and elevated home prices, which have created a tight market for buyers. Many homeowners who secured low-rate mortgages in previous years, especially around 3.5% or less, are hesitant to move, resulting in limited inventory. Although there was a brief reprieve with falling rates last year, this trend quickly reversed, making it increasingly difficult for first-time buyers to enter the market. As a result, home affordability has decreased significantly, with buyers now accustomed to a new normal of rates staying above 6% and only modest increases in home prices.
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