Realtor.com expects a gradual improvement in housing market dynamics in 2025, which will be impacted more by broader economic factors than the change of administration.
Among its predictions for the coming year are home sales prices growing by 3.7%, mortgage rates remaining above 6% and rents staying virtually unchanged. In addition, inventory growth of single-family home starts is expected to grow 13.8% next year and existing for-sale home inventory will grow by 11.7%, the company said in its 2025 housing forecast.
This will bring the first balanced market in nine years, as months of supply is projected to improve from a 3.7-month average in 2024 to 4.1 months in 2025. Under four months is typically considered a seller’s market while four to six months of supply is considered a balanced market.
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