A Record Number of Buyers Are Planning to Move in 2025 – What This Means for the Housing Market

The housing market is entering 2025 with renewed momentum. According to a recent NerdWallet survey, 15% of Americans plan to buy a home this year—the highest percentage recorded in this survey's history. This marks a significant jump from the 9-11% range seen since 2020, signaling a potential shift in buyer demand.

With more buyers reentering the market, key questions arise:

• What’s driving this surge in homebuying interest?
• How will this impact home prices and sellers?
• What should buyers and homeowners do to navigate the changing market?

2025 Housing Market Forecast: What Experts Predict

Real estate experts have differing perspectives on how 2025 will unfold:

• J.P. Morgan Research predicts a 3% rise in home prices, indicating steady property appreciation.
• Fannie Mae anticipates that affordability challenges and the "lock-in effect" will keep home sales relatively low, though slightly improved from recent multi-decade lows.
• The National Association of Realtors (NAR) projects a 2% increase in the median national home price, bringing it to around $410,700, a more moderate price growth compared to previous years.

Regional Housing Market Trends in 2025

Nationwide Market Update

• Inventory Growth: In January 2025, active home listings rose 24.6% year-over-year, marking the 15th consecutive month of inventory expansion.
• Home Prices: The median home price nationwide declined by 2.2% to $400,500, partly due to a growing supply of smaller homes.

East Shore Lake Tahoe Market Update

• Inventory Shift: The number of homes for sale increased 17% year-over-year, though listings have been declining since September due to seasonal trends.
• Home Prices: The median home price in Lake Tahoe has dipped, reflecting fewer high-priced properties on the market.

Why More Buyers Are Entering the Market in 2025

Several key factors are driving increased buyer demand this year:

1. Declining Mortgage Rates

Mortgage rates have been trending downward, making homeownership more affordable. As of February 2025, the 30-year fixed mortgage rate has dropped to 6.87%, the lowest since December 2024.

2. Pent-Up Demand

Many potential buyers postponed their home purchases over the past few years due to high mortgage rates, economic uncertainty, and affordability concerns. Now, with more stability in the market, they’re ready to buy.

3. Improved Housing Inventory

More homes are becoming available, with an 11.7% increase in existing home inventory compared to last year. This added supply helps balance the market, giving buyers more options and reducing price pressures.

What This Means for Sellers in 2025

If you're a homeowner considering selling, the increase in buyer activity presents a valuable opportunity. However, selling in 2025 requires strategic planning:

1. Price Competitively

With affordability still a challenge, realistic pricing is key. Overpricing a home may lead to longer market times and fewer offers.

2. Improve Home Appeal

Even with high buyer interest, today’s buyers are selective. Move-in-ready homes are in greater demand, especially in regions like Lake Tahoe, where labor shortages make renovations more difficult. Updated kitchens, modern finishes, and staged interiors can give sellers a competitive edge.

3. List at the Right Time

Spring and early summer are historically the best seasons to sell, attracting the most buyer competition and maximizing your sale price.

The 2025 Housing Market Outlook: What’s Next?

The record number of buyers planning to move in 2025 highlights the resilience of the housing market. While mortgage rates and affordability remain challenges, the overall outlook points to a more active year for real estate transactions.

For buyers, staying informed and financially prepared is crucial. For sellers, understanding buyer demand and market trends will help ensure a successful sale.

Are you planning to buy or sell a home in 2025? Stay ahead of the market with expert insights and real estate guidance. Contact us today to discuss your next move.