Predicting the future of the housing market is always a bit of a gamble. While past booms and busts teach us that no one can truly predict the future, there are some insights that can guide our expectations.

Lawrence Yun, the chief economist with the National Association of REALTORS® (NAR), recently shared his 2025 housing market forecast. Here are the key takeaways:

2025 Housing Market Predictions

• Existing Home Sales: A 9% increase is expected in 2025, signaling more movement in the resale market.
• New Home Sales: A projected 11% rise, which could be attributed to continued demand for newly built homes and more inventory becoming available.
• Mortgage Rates: Yun predicts that mortgage rates should stabilize in the low 6% range. This could help ease affordability concerns for many buyers.
• Home Prices: A modest 2% increase in home prices is forecasted, suggesting that price growth will continue, but at a slower pace compared to the dramatic increases of recent years.

Key Housing Market Trends for 2025

• Growing Housing Inventory: As inventory levels rise, buyers will have more options to choose from, potentially easing some of the intense competition we’ve seen in recent years.
• All-Cash Buyers on the Rise: The number of all-cash buyers is expected to reach 26%, a reflection of both strong investor activity and buyers with significant financial resources.
• Multigenerational & Single Buyers: More families are expected to purchase homes together, while single buyers (often millennials) are also increasing in number, reshaping the demographic landscape of homebuyers.
• Job Growth: With 2 million new jobs expected to be added in 2025, the overall economic outlook looks strong, which should support housing demand.
• Return to City Centers: There’s a notable trend of people moving back to urban areas from the suburbs. This shift may be fueled by factors like remote work, urban development, and lifestyle preferences.

Is It Time to Buy?

If the worst of the housing market downturn is behind us, it might be a good opportunity for buyers to act before the market heats up again. With inventory growing and some negotiation room on the table, buyers may find more favorable conditions than they would have seen in the past few years.

However, the key to navigating the 2025 housing market will be finding the right balance between current opportunities and future market conditions. With mortgage rates stabilizing and prices increasing gradually, it could be an ideal time for prospective buyers to make a move before the competition intensifies again.

So, whether you’re a first-time homebuyer, a seasoned investor, or simply someone keeping an eye on market trends, 2025 promises to be an interesting year for real estate. Stay tuned for updates, and consider making your move before the market shifts once more!

Looking to make a move? Start your Search with Robin Martin & Associates and let one of our experienced Agents with an award-winning North Atlanta real estate team help you find your next home!