As we see prices continue to stabilize, more homebuyers are expected to flock to the housing market
Dec. 18, 2024
Image: Andy Dean / stock.adobe.com
More homes are expected to sell in 2025.
While 2024 was challenging for many prospective homebuyers, real estate marketing platform Zillow predicts that mortgage rates, which fluctuated dramatically in 2024, will decline gradually in 2025, leading to growth in home sales. Home sales are expected to rise—though slightly—from 4.06 million in 2024 to 4.16 million in 2025, while home values are also projected to increase by 2.2%. Although new listings remain 14% below pre-pandemic levels, this marks significant improvement from March 2024’s 25% deficit.
Total for-sale inventory is similarly clawing its way out of a deep hole that developed early in the pandemic. It is now about 26% below the norms of 2018 and 2019, the smallest shortfall seen since September 2020. Both of these should continue to improve next year, but again, progress will depend heavily on what happens with rates.Read more
