The market is always cyclical. Over the next few years, we expect the market to return to “pre-pandemic” levels. This means inventory will rise, mortgage rates will stabilize, and home values might as well. Buyers aren’t as willing to let go of the “little things” and offers aren’t as aggressive as years past, but on well-maintained and accurately priced homes, strong offers favorable to the seller will still be negotiated.
Buyers who have been waiting on the sidelines or have been missing out on homes – 2025 is your year! Mortgage rates have been volatile the last few years, but we expect them to steady out by the end of 2025. One of the best investments you can make is real estate – housing prices and values will continue to rise even if at a slower incline. Our team is always ready for new challenges and will adapt and overcome anything the market brings to ensure positive, seamless transactions for our clients. You are always our top priority!
Sarah’s market predictions:
There are so many factors that impact the real estate market, it’s hard to “predict” the future, (but if you have a crystal ball, I’d love to borrow it!), but we can watch trends and experience in past years to help us gauge the direction the next year is moving towards. Low inventory remains a critical factor driving our values. We expect a correction and stabilization this year both in values and mortgage rates. Expect to see rates to drop to the low 6%’s and remain there. Values in well-maintained, well-priced homes in desirable locations will see multiple bids over the asking price but homes listed at those “reach” prices might stay on the market, potentially going through price reductions before securing the right buyer.
I expect inventory to pick up in January-July for a seasonal market, increasing opportunities for buyers. The 2025 fall market will likely feel “seasonal,” with higher inventory from sellers who list before the end of the year after watching homes close for higher values in the spring and early summer. I think another important factor is that most sellers want to secure their next housing opportunity before listing their home, which is holding many homeowners back… except for those that list with us! We do our best to do off-market prospecting and agent-to-agent networking to find our
clients their dream home before they list their home (if we can!).
Dawn’s market predictions:
As we move forward into 2025, I expect we will see a busy, yet challenging market. With the continued low inventory in 2024, I am hopeful we will see a slight increase in homes being listed, but with that said, home prices will most likely continue to increase slightly. This is a continued plus for sellers. Multiple bid situations will continue to be seen with homes that are accurately priced. For buyers, now is the time to buy as the market is not showing signs of a decrease in pricing anytime soon. Rates will continue to affect home affordability, but buyers who have been waiting on rates to come down may choose to finally try and enter the home purchasing scenario.
Katie’s market predictions:
Experts project that mortgage rates will decline a bit, which should lead more buyers and sellers to move. That will create a moderate increase in sales as activity picks up and prices will continue to rise slightly. I would expect a strong sellers’ market to continue in 2025, with listings receiving multiple offers when homes are priced strategically.
Jennifer’s market predictions:
In 2025, I anticipate moderate price growth and interest rates holding in the mid to low 6% range. Buyers and sellers are adjusting to this new normal, which should bring more inventory, especially in the spring. Here in Fairfield County, the market remains strong for sellers due to persistently low inventory. Turn-key homes priced correctly will likely sell quickly and attract multiple offers, but there will be more opportunities for buyers compared to 2024.
Hillary’s market predictions:
As we look ahead to 2025, I anticipate a positive outlook for the real estate market. While inventory levels are expected to gradually increase, providing buyers with more opportunities to find their ideal home, demand will likely still outpace supply. As a result, home prices are projected to continue rising. Bidding wars and cash offers will likely remain common in many markets. Additionally, off-market transactions will continue to be a valuable strategy for securing the best deals.
Audrey’s market predictions:
I am hopeful that 2025 will bring more inventory, sellers that held off listing their house in 2024 may decide that 2025 is the time to sell! Although we saw a brief dip in interest rates in 2024, I don’t think 2025 will bring any major changes to the interest rates. I think that come spring, we will see many homes listed for sale, and with an increase in inventory it may make the market and home prices more desirable for buyers. I think we will continue to see a competitive market, although it may not be as competitive as it has been the last few years.
