The coming year will see home sale prices will grow by 3.7% while mortgage rates will stay above 6% and rents will remain virtually unchanged, according to a new forecast from Realtor.com.
Realtor.com’s forecast is also pointing to an 11.7% increase in existing home inventory and a 13.8% growth in single-family new home starts that will reach at total of 1.1 million homes, a figure not seen since 2006. The forecast also predicts a 1.5% year-over-year uptick in home sales to 4.07 million and a 4.1-month supply of homes for sale.
“While more inventory means buyers will likely have more time to make purchase decisions in 2025, in any market, a fast-acting buyer will have a higher likelihood of making the winning offer,” said Danielle Hale, chief economist at Realtor.com.
As for the incoming Trump administration, Hale noted its’ impact on the housing market will depend on when President-elect Trump can enact his proposed economic policies.
“While President-elect Trump can work quickly with his administration to implement some regulatory changes, other policies that will affect housing, such as tax changes and broad deregulation, require the cooperation of other branches and levels of government,” she said. “The size and direction of a Trump bump will depend on what campaign proposals ultimately become policy and when. For now, we expect a gradual improvement in housing market dynamics powered by broader economic factors. The new administration’s policies have the potential to enhance or hamper the housing recovery, and the details will matter.”
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