It’s a new year and that means we all have different expectations and hopes. 2025 is a year we all hope is meant with great health and rewarding decisions, especially when it comes to real estate. Whether you are buying or selling a home, this year could be a little challenging compared to others. We start the year with interest rates that are pretty high as well as other challenges that make it difficult to move inventory.
However, it may be inventory that keeps the market strong, especially as we get started. The reality is that interest rates are going to slow a lot of people down from buying a home, but it will not stop them. People still want to buy homes whether it’s for themselves or as an investment and their motivation is keeping the market in good condition.
Where The Market Stands Right Now
Currently, the real estate market is in decent shape. Compared to two or three years ago it is struggling, however, it is not a struggling market by any means. There are still sales taking place and most importantly, home values are staying up. A home that went from $300,000 in 2017 to $500,000 in 2021 is still valued in the 500’s which is fantastic.
Some areas are even seeing continued increases in home values as demand remains strong. The market may be taking its lumps, but it is strong and moving forward, especially considering the majority of mortgages are still affordable and without high interest rates. That means foreclosures are not going to be around the corner for a while.
Where Can It Go
While the market still wants to go up, interest rates are suppressing it and for good reasons. However, buyers are desperate for inventory, especially if they are investing. They need properties more than they need great deals so they are willing to pay more now to get the property they want. If you are considering buying or selling this year there are things to consider, however, your success will not be determined by the market but by your efforts and the property itself.
Research what the local real estate market currently looks like. Look at home prices in your neighborhood or areas you wish to buy and compare them to what they were even a couple years ago. Are prices up or down and how much? This information can help you manage your expectations for 2025.
