US home sales expected to increase in 'bumpy' 2025 housing market
SEATTLE - While America seems to be in a bit of a buyer's market now, a new Zillow report points to a rise in home sales next year.
If a silver tsunami won't help the Seattle housing market, maybe the conditions for 2025 will. Analysts with the real-estate marketplace giant say it mostly hinges on the rates though, cautioning any trends will be "bumpy" going into the year.
Keep reading for factors being eyed in the new year that will impact prices.
Rising inventory and steady rates may ease competition in 2025
"Erratic and dramatic mortgage rate movements that heavily influenced the housing market in 2024 are destined to play a major role in the coming year," a company spokesperson said.
A rate drop in September made up for a slump earlier in the year. While unreliable, a belief that the slight downward trend in interest rates will translate to more sales.
Sales and inventory are forecast to continue climbing out of their pandemic holes, according to the report. About 100,000 more homes should hit the market compared to 2024, a small share of the 4.16 million expected in 2025.
As for home values, researchers are agreeing that the United States is approaching more historical norms after a volatile five years. Those are forecast to go up by about 2.2%, which is comparable to what we saw in Nov. 2024.
Inventory has been an issue with bringing home prices down since 2020. Right now we are at 26% below averages seen in 2018-2019.
Competition is also cooling. Zillow says, nationwide, that 36 of 50 major U.S. metro areas saw some elbow room open up for buyers.
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