As we progress through 2025, the housing market presents promising opportunities for both sellers who’ve faced challenges and buyers awaiting favorable conditions.
Encouraging Signs for Sellers
Recent forecasts suggest an uptick in home sales for 2025. The National Association of Realtors (NAR) anticipates a 9% increase in existing home sales this year, followed by a 13% rise in 2026.
NAR.REALTOR
This positive trend indicates a growing pool of potential buyers, pushing the likelihood of successful sales.
Additionally, the stabilization of mortgage rates around 6% is expected to encourage more buyers to enter the market. As Lawrence Yun, NAR’s Chief Economist, notes, “The new normal for mortgage rates will be around 6%… still below the long-term average of 7%.”
This stability can alleviate concerns for buyers hesitant due to fluctuating rates, thereby increasing demand.
Opportunities for Prospective Buyers
For those considering purchasing a home but deterred by previous pricing, the market is showing signs of moderation. Home prices are projected to rise by a modest 2% in 2025, reaching a median of $410,700.
NAR.REALTOR
This slower growth rate may make homeownership more attainable for many.
Moreover, the anticipated increase in housing inventory—expected to improve by 11.7%—means buyers will have more options to choose from.
This expansion in available homes can lead to reduced competition and potentially more favorable pricing.
While the market is becoming more favorable for buyers, sellers can remain optimistic due to the sustained demand and the influx of buyers encouraged by stabilizing mortgage rates. This balance suggests a healthier housing market where both parties can achieve their goals.
In summary, 2025 is shaping up to be a pretty good year for both sellers and buyers compared to the last two. Sellers who have faced challenges may find renewed interest in their properties, while buyers could discover more options within their desired price ranges.