What to Know About the 2024 and 2025 Housing Market for Buyers and Sellers

• Author: Margaret Hills
• Posted: 2024-10-28

Getting Ready Costs Less Now

Mortgage rates have dropped a bit recently, but buying a home is still pretty expensive. If you're thinking about buying a home, it's smart to start saving money and working on your credit score now.

Look into loans that are easier on your wallet and programs that help with down payments to make things more affordable.
 

A Glimmer of Hope

The last couple of years have been tough for people wanting to buy homes. Prices have been high, and loans cost a lot because of high mortgage rates. But things are starting to look up. Mortgage rates are going down, which could make homes a bit more affordable soon, especially by 2025.
 

Understanding the Housing Market

 

• Prices Right Now: The average home in the U.S. is worth about $361,282, which is 2.9% more than last year. And even though mortgage rates have been high, they're starting to go down a bit now.
• Why It's Been Hard to Buy: Homes have been expensive, and loans have been costly, making it tough for many people to buy homes. Because of this, not as many people are selling their homes, which makes it even harder to find a home to buy.
• What Makes the Housing Market Tick: Things like the economy, how many new homes are being built, and what it costs to borrow money (mortgage rates) can all affect the housing market.
• The Economy and Interest Rates: High inflation made the Federal Reserve increase interest rates, which raised mortgage rates too. But now, inflation is cooling down, so mortgage rates might get lower.
• How Many Homes Are Available: Right now, there aren't enough homes for sale, which keeps prices high. But if more homes become available, it could help stabilize prices.
• Predictions for 2024 and 2025:
  • Mortgage Rates: They’ve fallen recently and might continue to drop, making it easier for people to borrow money to buy homes.
  • Home Prices: They're expected to keep going up, but not as fast. Some experts think home prices might rise a bit slower in the next couple of years.
  • More Homes Could Be Available: As mortgage rates drop, more people might decide to sell their homes, which could mean more choices for buyers.

 

Is It a Good Time to Buy or Sell?

 

• For Buyers: It could be a good time if you can afford it because mortgage rates are lower. But it's also important to consider your own financial situation and what's happening in your local housing market.
• For Sellers: If you’ve been waiting for a better time to sell, 2025 might offer lower mortgage rates and a higher demand for homes, possibly getting you a better price for your house.

 

A Big Shift on the Horizon?

Some believe a "silver tsunami" of older homeowners selling or leaving their homes could add more homes to the market, potentially making it easier for first-time buyers in a few years.

Check Out: What You Need to Know When Buying a Home for the First Time
 

Getting Ready to Buy a Home in 2025:

 

• Sort out your finances to get the best mortgage rate.
• Paying down high-interest debt can help improve your credit score.
• Think about saving more for a down payment to make your mortgage cheaper.

This summary offers a snapshot of what's happening in the housing market, why, and what it might look like in the near future. Whether buying or selling, it's a mix of challenges and opportunities ahead.

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