US Housing Market Predictions for 2025 - is the American Dream dead?
The housing market has been challenging for buyers, with high mortgage rates and elevated prices dominating 2024. As the market continues to normalise post-pandemic, Zillow predicts notable changes for 2025, many of which align with trends spotlighted on platforms like American Dream TV.
1. Rising Home Sales
Zillow forecasts home prices will rise by 2.6%, with existing-home sales reaching 4.3 million, up from 2024. While affordability challenges persist, increased inventory may give buyers more time and leverage during negotiations. The market appears to be "unsticking," gradually allowing for a more balanced environment.
2. Volatile Mortgage Rates
Mortgage rates are expected to remain unpredictable, fluctuating throughout the year. Borrowers may see opportunities for refinancing during dips, though rates could occasionally spike near 7%. These swings highlight the importance of timing for buyers looking to make their move.
3. A Buyer’s Market in the Southwest
The Southwest is likely to become more favourable for buyers as inventory increases. However, falling mortgage rates could boost demand, potentially giving sellers more control. The region is set to attract movers with greater choice and competitive conditions for sellers.
4. Smaller Homes Gain Popularity
Demand for smaller homes continues to grow. Descriptions like "cozy" are increasingly common in listings, reflecting buyers' preference for affordable options. Stabilisation in condo prices and cooling appreciation for larger properties suggest that downsizing is becoming more attractive.
Preparing for 2025
Buyers and sellers alike should brace for a dynamic market in 2025. Outlets like American Dream TV are likely to delve into these trends, offering insights into navigating the evolving landscape. While affordability remains a hurdle, increased inventory and shifting dynamics provide opportunities for savvy participants in the housing market.