2025 Housing Market Forecasts
Debbie Allan January 17, 2025
Debbie Allan January 17, 2025
As we step into 2025, it’s natural to wonder what the housing market will look like this year. Whether you’re buying, selling, or just keeping an eye on the trends, understanding the broader and local market forecasts is crucial. Let’s dive into the national outlook first and then discuss what we can expect here in Dutchess County, NY.
Mortgage Rates Expected to Decline Slightly Good news for prospective buyers: experts predict mortgage rates will ease slightly, likely settling in the 6-6.5% range by the end of the year. While volatility could still arise, this slight decrease provides an opportunity for many to secure more favorable financing. Forecasts for the average 30-year fixed mortgage rate from organizations like Redfin, Wells Fargo, and Realtor.com align within this range, showing optimism for borrowers.
Home Prices to Continue Rising—But at a Moderate Pace Nationally, home prices are expected to rise at a more sustainable rate compared to previous years. On average, forecasts indicate a 3% appreciation in home prices, though this will vary depending on location. Some organizations, like AEI Housing Center, project a higher appreciation of 5.5%, while others, like Morgan Stanley, foresee slight declines in specific markets. Overall, this signals a move toward a balanced and steady housing market for 2025.
Inventory Growth to Provide More Options One of the standout predictions for 2025 is an increase in available housing inventory. According to Altos Research, the number of homes for sale could grow by as much as 15% compared to current levels. This is promising news for buyers who have faced limited options in recent years. As Mike Simonsen, Founder of Altos Research, states, “2025 is poised to continue the trend of rising inventory across the country.”
While national trends provide a general sense of the market’s direction, real estate is ultimately local. Here in Dutchess County, NY, we’re seeing a market that mirrors many national trends but with unique local nuances.
Mortgage Rates: With slight declines expected nationally, Dutchess County buyers may benefit from increased affordability. Lower rates could entice more buyers into the market, boosting competition for well-priced properties.
Home Prices: Home prices in Dutchess County are anticipated to rise modestly, reflecting the national trend of steady appreciation. Desirable communities, access to Metro-North, and a high quality of life continue to make our area appealing to buyers, which should keep demand relatively strong.
Inventory Levels: One of the biggest shifts we’re anticipating locally is an increase in inventory. More homes for sale could help ease the tight market conditions we’ve experienced over the past few years. This will provide buyers with more options while encouraging sellers to price competitively.
Whether you’re considering buying or selling in 2025, it’s clear that the housing market is moving toward more stability and balance. For buyers, increased inventory and slightly lower mortgage rates may offer a chance to find your dream home. For sellers, continued appreciation means your investment remains valuable, though strategic pricing will be essential.
If you’re curious about how these forecasts impact your plans, I’m here to help! With decades of experience in the Dutchess County real estate market, I’m well-equipped to guide you through the nuances of this year’s market. Let’s connect to discuss your 2025 real estate goals!
And that’s big news if you’ve been sitting on the homebuying sidelines waiting for this moment.
I am ready to work with you to help you sell or buy a home! So whether you are a first time buyer, relocation buyer, investor, moving up or downsizing...I am ready to roll up my sleeves to go to work for you! Make your next move with Debbie Allan!