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:
Real estate experts have differing perspectives on how 2025 will unfold:
Several key factors are driving increased buyer demand this year:
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.
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.
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.
If you're a homeowner considering selling, the increase in buyer activity presents a valuable opportunity. However, selling in 2025 requires strategic planning:
With affordability still a challenge, realistic pricing is key. Overpricing a home may lead to longer market times and fewer offers.
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.
Spring and early summer are historically the best seasons to sell, attracting the most buyer competition and maximizing your sale price.
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.
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East Shore – Market Overview