Home Sales May Fall to New 30-Year Low in 2025 as Mortgage Rates Remain Elevated
Photo by Blake Wheeler
Realtor.com just released its updated 2025 housing market forecast, and it's essential reading for anyone dreaming of their own place. While the road ahead still has its bumps, understanding these predictions can help you prepare.
The big news? Mortgage rates are now expected to stay higher for longer than previously thought, averaging around 6.7% through 2025 and ending the year at 6.4%. This means that while home prices are still predicted to grow, that growth is slowing down to about 2.5%. What does this mean for you? It means home sales are likely to slow down a bit too, potentially hitting a 30-year low of 4 million transactions. For many, especially first-time buyers, affordability continues to be the main hurdle in the current market.
On a brighter note, there's good news for inventory! Realtor.com expects a significant increase in the number of homes available for sale, particularly in the South and West. This could give you more choices and potentially ease some of the intense competition we've seen. However, new construction is actually expected to decline slightly, which means existing homes will be crucial for boosting supply. If you're currently renting, rental price growth is expected to remain soft, which might offer a small silver lining while you save for that down payment. Overall, 2025 looks like a year that will continue to challenge, but also potentially reward, prepared and patient homebuyers.
To read more go to the original article
Disclaimer: My Home Pathway is a technology driven risk improvement platform. We are not a mortgage broker or lender and are not representatives of any home loan programs. We are not a credit repair company, HUD certified counseling agency, or one on one home counselor. While we offer mortgage related services, we are not a bank, non profit organization, foundation, or real estate agency. We may partner with those organizations to provide content and access related to our services.
The information provided is for educational purposes only and should not be considered credit repair advice or housing counseling services. For credit repair assistance or housing counseling, please consult with appropriate certified professionals or HUD-approved agencies.
Fintech Founder at My Home Pathway. VC Backed Startup. Financial Inclusion Leader and Speaker.
Risk and project management professional with experience in Federal Reserve banking regulations, risk management policies as well as risk management advisory services. Critical skills include credit risk analysis, capital markets, strategic planning, current state assessments and target operating models. Ability to assess evolving regulatory guidelines and potential impact on financial services organizations operationally and strategically.
Mr. Johnson received his Bachelor of Science in Management and International Business from Penn State University where he was a Bunton Waller Scholar and Division 1 athlete and his MBA in Finance and Accounting from New York University.
