Home prices in 2025 will continue to inch up — but not as quickly as they once did(Image credit: Grace Cary / Getty Images)Since the start of the pandemic, the housing market has posed challenges for buyers and sellers alike. While home buyers have been stuck with steep mortgage rates and rising home prices, sellers have struggled with questions like when buyer demand will be in the right place and whether to ditch a lower mortgage rate for a higher one if they need to rebuy.If you are wondering whether 2025 will finally be your year to sell, there are a handful of circumstances to consider that “will shape whether the real estate market offers favorable conditions in the year ahead,” said Kiplinger. These range from “economic ripple effects of the presidential election to evolving buyer demand.”By staying “up to date on market trends at both the national and local levels and working with trusted professionals,” added the outlet, sellers can better gauge whether 2025 is the right year for them to list.Subscribe to The WeekEscape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
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Sign up for The Week’s Free NewslettersFrom our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.Will the housing market favor buyers or sellers this year?It could be a bit of both. “More homeowners are expected to list their homes and return to the housing market in the new year as mortgage rates stabilize and home price growth slows,” said Investopedia, which could give sellers “an easier time finding a buyer.” In years past, buyers’ hesitancy to buy due to factors like steep rates, rising prices and policy uncertainty amid the 2025 election may have winnowed the pool.However, the “improved inventory” as the housing shortage eases a bit could also “mean more competition” for those looking to sell, said Kiplinger. If competition does end up increasing, that means “sellers must be flexible going into 2025, as buyers will start to have the upper hand” and be able to “demand price cuts or concessions,” said Investopedia.Home prices in 2025 will continue to inch up — but not as quickly as they once did. While “in 2024, prices rose by 4.5% year-over-year,” in the new year, the National Association of Realtors “predicts a more modest increase of about 2%, with the median home price expected to reach $410,700,” said Kiplinger.This may mean lower hopes for the whopping profit some sellers have landed in times of peak demand, and it can also translate to quicker sales. That is because higher prices “require buyers who can afford the purchase, and interest rates are making that harder,” which can lead to houses sitting on the market longer as buyers contemplate their purchase, said Bankrate.Is 2025 going to be a good year to sell a
