Buying and Selling in 2025
Date Published
Buying and Selling in 2025
Navigating the residential real estate market in 2025 requires a clear understanding of shifting trends, persistent challenges, and emerging opportunities. Buying and selling in 2025 looks different from previous years, with both buyers and sellers needing to adapt to a market shaped by high mortgage rates, evolving inventory levels, and changing buyer preferences.
Market Overview
The U.S. housing market in 2025 is expected to remain relatively subdued, with home price growth projected at a modest rate of around 3% or less. Inventory is gradually increasing, especially with new construction reaching levels not seen since before the pandemic, but overall supply is still below historical averages. This means competition remains, but buyers may find more options than in recent years.
For Buyers
- Mortgage rates are expected to hover near 6.9%, making affordability a key challenge. Many potential buyers are waiting for rates to drop, but experts warn that significant decreases are unlikely in the near term.
- Home prices are rising, but at a slower pace than during the pandemic boom. This cooling trend could give buyers more negotiating power, especially as inventory grows.
- New construction is creating more choices, particularly in suburban and secondary markets, where remote work continues to drive demand.
For Sellers
- Slower price appreciation means sellers should set realistic expectations for returns. Homes are still selling, but bidding wars are less common than in previous years.
- Staging and pricing are more important than ever, as buyers have more options and are more discerning.
- Energy-efficient upgrades and smart home features remain attractive to buyers, especially younger generations prioritizing sustainability.
Key Trends to Watch
- Millennials and Gen Z are driving demand for smaller, energy-efficient homes.
- Government policies aimed at improving affordability could impact first-time buyers and lower-income families.
- Regional shifts favor suburban and smaller metropolitan areas, as buyers seek affordability and quality of life.
Buying and selling in 2025 will require flexibility, patience, and a willingness to adapt to a market that is stabilizing but still faces affordability challenges. Whether you’re looking to purchase your first home, upgrade, or sell, staying informed about current trends and working with experienced real estate professionals will be essential. The Onward Real Estate team is here to guide you through every step, ensuring your experience is smooth, informed, and tailored to your goals
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