As we look towards 2025, understanding the predictions for the Triangle Area housing market is crucial, especially if you’re planning to buy or sell a home in Raleigh. Knowing what experts anticipate can significantly influence your decisions regarding homeownership.
Mortgage Rates Are Projected To Come Down Slightly
Mortgage rates are a pivotal factor in the housing market. According to forecasts from industry leaders like Fannie Mae, the Mortgage Bankers Association, the National Association of Realtors, and Wells Fargo, we can expect a slight decrease in mortgage rates throughout the next year (see chart below):
This expected drop is linked to the anticipated easing of inflation and a slight increase in unemployment, which could prompt the Federal Reserve to lower the Federal Funds Rate, potentially reducing mortgage rates. Morgan Stanley projects:
With the U.S. Federal Reserve widely expected to begin cutting its benchmark interest rate in 2024, mortgage rates could drop as well—at least slightly.”
Increase in Home Sales Expected
The Raleigh housing market is anticipated to see an uptick in both the supply and demand as more buyers and sellers decide to act, spurred by potentially lower rates. This resurgence is why experts predict a boost in home sales for next year.
Fannie Mae, MBA, and NAR all forecast a modest rise in sales, with an expected 5.4 million homes to be sold in 2025 (see graph below).
This represents a slight increase from the 4.8 million homes sold in 2023 and the projected 4.5 million homes this year.
While the dip in mortgage rates might not flood the market with buyers and sellers, it is likely to encourage more transactions, leading to increased availability of homes and heightened competition among buyers.
Moderate Rise in Home Prices
As more buyers enter the market, the demand will likely continue to push home prices upward. Check out the latest projections from ten top real estate sources in the accompanying graph below.
On average, these experts predict a national increase in home prices by approximately 2.6% for next year. While estimates vary, there is consensus that home prices will see a steady, moderate rise. This trend reflects a balanced yet progressing housing market.
Bottom Line
Understanding the forecasts for the 2025 housing market is vital for planning your next steps in real estate. Whether buying or selling, being well-informed will help you make the best possible decisions. Contact Linda Craft Team Realtors to explore how these trends might influence your future real estate endeavors in the Triangle Area.