What Do Experts Forecast for the 2025 Housing Market?

Right now, the No. 1 question I’m getting is, “What’s going to happen to the housing market in 2025?” I get it; a lot of people had plans to move this year but put things on hold due to higher mortgage rates and a slowing market. This begs the question: Will 2025 be any different? The short answer is yes, although there probably won’t be a dramatic shakeup that flips the market on its head. Today, I’m going over what the top experts are forecasting for mortgage interest rates, home prices, and buyer demand in 2025. Plus, I’ll share my insights on how you can get ready for these changes before the new year even starts: 

1. Mortgage rates will ease slightly. It’s no secret that higher mortgage interest rates have hurt affordability for buyers and caused our market to slow down. U.S. existing home sales hit a 14-year low in September 2024, and one of the biggest reasons why is that would-be buyers are sitting on the sidelines waiting for rates to drop. While Fannie Mae and Freddie Mac aren’t predicting rates to crash to where they were a few years ago, most experts believe rates will fall below the 6% mark for the first time since Q2 of 2022. Since mortgage rates are a key factor in housing affordability, this is fantastic news for buyers sitting on the fence. 

2. Home prices will increase slightly. While home prices have stagnated recently or even come down in some areas of the country, prices are projected to rise in 2025. Different institutions have varying forecasts, but prices are expected to rise 2.6% when you average their predictions. This is a modest increase compared to what we’ve seen over the last few years, but it projects stability for our market. Homeowners don’t have to worry about prices crashing, while things will stay relatively affordable for new buyers. 

3. More buyers will enter the market. Lower interest rates and steady prices mean demand for homes will increase. According to the Senior Economist at Wells Fargo, “Lower financing costs will likely boost demand by pulling affordability-crunched buyers off of the sidelines.” As these buyers enter the market, the pace will speed up. Homes will sell faster, competition will increase, and supply will decrease as more buyers fight over fewer options. 

So what does this all mean for you? If you want to sell, 2025 is looking to be a great year for the market, so I recommend you start planning your move now so you can get a head start. On the other hand, buyers need to act fast. There will be a very short window where rates are lower, but home prices haven’t increased yet. If you’d like to plan for 2025, whether you’re looking to sell or buy, please call or email me. I’d love to help you plan your next move!

 

4 Most Common Problems During Closing and How To Avoid Them

 

Liens from financed solar panels, long-term security contracts, costly swimming pools, and misunderstood water softeners can hinder your home sale.

Ever thought you were all set to sell your home, only to find unexpected hurdles at the closing table? 

I recently had a client ready to close on their home sale. Everything seemed perfect until we discovered they owed $7,761 on a water softener system they thought was leased, not purchased. Imagine finding out about that kind of bill right when you're about to close. 

These kinds of issues aren't as uncommon as you might think. There are four significant additions—I call them the Four S's—that can trip you up when selling your home:

• Solar Panels
• Security Systems
• Swimming Pools
• Water Softeners

You might have added these to improve your home, but they can complicate things when it's time to sell.

When you sign agreements for these systems, they often come with fine print that can create liens on your property. Title companies will find these liens, which must be paid off or transferred to the buyer before you can close.

Let me break it down for you:

• Solar panels: They're fantastic for energy savings, but if you're planning to move in the next few years, the financing agreements can become a headache.
• Security systems: Peace of mind is priceless, but long-term contracts might tie your hands when selling.
• Swimming pools: Great for summer fun, but they might not add as much value to your home as they cost to install.
• Water softeners: As my client learned, not understanding the purchase agreement can lead to unexpected debts.

So, what's the solution? Before you add these features—or if you already have—look closely at your agreements. Read the fine print. Ask yourself:

• Is this a lien on my property?
• Can this agreement be transferred to a new owner?
• What happens if I sell before it's paid off?

By understanding these details now, you can avoid surprises later.

If you're thinking, "This sounds complicated," don't worry—I'm here to help. I aim to help you have a smooth, successful closing without any unexpected bumps. At Shine Team Realtors, we can walk you through your options and make sure you're fully informed. Ready to sell your home without the stress? Contact us at (254) 690-4321 or Shine@ShineTeam.com. Let's make your home sale a shining success together.