In 2025, expect interest rates to stabilize but remain high.
Every new year gives us a fresh new start, and for home buyers and sellers, it’s a good time to reflect on what happened in 2024 so we can make the best real estate move this year. So, I’m going to contrast what we saw last year with what we can expect in 2025.
How will homebuyers respond in 2025? Interest rates went up and down which was stressful for a lot of buyers. Despite that, we found a lot of grant programs to help buyers still purchase their house. However, inventory levels were really tight and prices kept climbing. While sellers saw their prices stabilize or even increase by 1% or 2%, we didn’t see the drips we had hoped for.
Technology played a big role in 2024. More buyers were online using AI and different real estate websites to save time during their searches. Most of our leads came from web-provided sources as well.
What should buyers expect in 2025? First, interest rates may stabilize, but they might remain a little high now in the market. It’s confusing, especially when the Fed comes in and lowers the interest rates and banks raise them again. My advice is to be patient with interest rates as we expect it to fluctuate throughout the year.
“Connect with your real estate agents to navigate the changing market.”
Next, we’re starting to see some growth in inventory which means more opportunities for buyers and causes home prices to stabilize. Affordability programs are also available to help homebuyers, so I advise you to connect with banks and Realtors to find out if you qualify for those.
Technology is here to stay and it will continue to improve. Keep an eye out for new tools and resources to assist in your home search.
Lastly, one important change for buyers in 2025 is the new regulation requiring everyone to sign a Buyer’s Agreement before entering a property. If you’re confused about how this works, just contact me, and I’ll explain it to you.
What does this mean for home sellers in 2025? There was a high demand for homes which kept prices up. Many sellers had great equity in their homes allowing them to cash it out and either buyer buy another home, invest, or use it for retirement.
Pricing strategies became more competitive because sellers focused on home staging, professional photography, and making home upgrades before listing their homes on the market.
What should home sellers expect in 2025? Sellers will need to use various strategies to close a sale on their home. We might see the market balance out a little more, but it will still be challenging. For starters, buyers may approach the market with more caution this year, so it’s crucial to have a solid plan before jumping into the market.
It’s hard to tell what’s going to happen in the housing market so make sure to connect with a real estate agent for expert guidance. If you’re ready for 2025 to be new for you and buy or sell a home, contact me at (607) 795-2904 or send a message to vickischamel@kw.com. I’m always happy to talk to anybody who needs my help.
