What are Experts Predicting for Housing in 2025?

What’s Ahead for the Housing Market in 2025?

As we step into 2025, our friends and clients are asking: what’s next for the housing market? Whether you’re considering selling your home or looking into investment opportunities, understanding this year’s key trends locally and nationally can help you make smarter decisions. Two primary factors shaping the market are mortgage rates and home prices. Here’s what experts are saying and how it could impact you here at home.

Mortgage Rates: Easing But Stabilizing

After the rollercoaster of the past few years, many are eager to see mortgage rates come down. While they’re expected to ease slightly in 2025, don’t anticipate rates returning to the historically low levels of 3-4%. According to Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), “Are we going to go back to 4%? Per my forecast, unfortunately, we will not. It’s more likely that we’ll go back to 6%.” Other experts agree, predicting rates to settle in the mid-to-low 6% range by the end of the year.

Locally, this means buyers and sellers may see slightly more affordable financing options compared to recent years, but it’s still important to plan carefully. A modest decline in rates can still provide significant savings on your monthly mortgage payments. Partnering with us, your trusted local lender and real estate experts, can help you navigate these changes and determine how to best position yourself financially.

Home Prices: Continued Growth at a Sustainable Pace

Unlike the double-digit spikes seen during the pandemic, home prices in 2025 are projected to grow at a more sustainable rate, with experts forecasting an average increase of 3-4%. For sellers in Central Florida and Brevard County, this means your home’s value is likely to appreciate, albeit at a steadier pace. Buyers, on the other hand, can expect to find opportunities without the dramatic price surges of recent years.

In our local market, demand remains strong, particularly in desirable neighborhoods like College Park in Orlando or waterfront areas in Merritt Island. Even with more homes hitting the market, inventory is still limited compared to the number of active buyers. As Redfin notes, “Prices will rise at a pace similar to that of the second half of 2024 because we don’t expect there to be enough new inventory to meet demand.” However, Brevard County may see a slight leveling off in areas with higher inventory, so it’s crucial to work with us, your local real estate professionals, who understand these nuances.

Takeaways

The 2025 housing market will continue to shift, but opportunities abound for both buyers and sellers who stay informed. Mortgage rates may ease slightly, and home prices will likely grow at a more predictable pace, offering a promising outlook for the year ahead. Whether you’re exploring a sale or considering an investment property, leaning on expert guidance is crucial to making the best decisions for your unique circumstances.

Ready to take the next step? Contact us today to discuss how these trends might impact your goals. As both trusted lenders and experienced real estate professionals, we are here to create a tailored plan for your success in Central Florida and The Space Coast.