Home prices in 2025 could rise even further

Predictions about the real estate market for 2025 point to a challenging outlook for those interested in buying a home. Prices will continue to rise next yearwhich could make the goal of owning your own home even more difficult to achieve for many families. Although renters may have certain advantages, those looking for a property will have to prepare for a continued increase in costs.

According to real estate experts, US home prices are expected to increase by approximately 4% during 2025according to Redfin’s forecast. This trend would continue throughout the year, replicating the behavior of the second half of 2024. For its part, Realtor.com predicts somewhat lower growth, of 3.7%.

Despite The supply of available homes could increase by 11.7%due to increased post-pandemic apartment construction, the increase in home prices will continue to be a determining factor in the market.

This is because, despite the increase in supply, demand remains high, which does not allow prices to stabilize.

“Any year in which the presidential administration changes is unpredictable, and This one could be especially unpredictable.“Warns Redfin.

This uncertain outlook is due to the fact that government policies, particularly in relation to taxes and tariffs, could directly impact mortgage interest rates.

“Trump’s proposed tariffs could be inflationary, and implementing more tax cuts would increase the US deficit, putting upward pressure on mortgage rates,” Redfin commented.

Regarding interest rates, they are expected to remain above 6% throughout the year, and could approach 7% depending on the economic decisions made by the new government.

However, there is also the possibility that if the economy weakens or if fiscal plans are reduced, rates could drop to a lower range, close to 6%.

In contrast to this not very optimistic outlook for buyers, renters will have a respite. The trend will be a more accessible rental marketas rents will remain stable or could even go down slightly in certain areas.

Both platforms, Redfin and Realtor.com, agree that Tenants will benefit from an increase in the supply of apartmentswhich will generate greater competition among landlords. This phenomenon can encourage landlords to offer discounts or more favorable conditions for tenants.

Rising home prices, combined with high mortgage rates, are keeping many Americans out of the housing market, unable to achieve the dream of being owners. The high cost of mortgages and high monthly payments will continue to be significant barriers. Although the rental market may offer temporary relief, the option to purchase seems to remain a distant goal for a large part of the population.

You may also be interested in:

• 5 $10 bills worth more than $300,000
• Banknotes that could skyrocket in value before the end of 2024
• Aldi brought back a popular product that is only $10
• Say goodbye to $943 and $1,415 Social Security payments: what will happen
• What are Susan B. Anthony coins worth thousands of dollars like?