For the first time since 2020, housing affordability improved year over year. This is largely due to a drop in mortgage rates, which have dipped from 7.07% to 6.09% over the past year. While this is
8 Experts Predict Home Prices for 2025
Dated: July 8 2024
Views: 119
Lately, there's been a lot of buzz about what's next for home prices, especially with 2024 shifting gears in some markets. Here in Sioux Falls, we saw inventory slowly growing during the first six months of 2024.
But what about the future of the market? Listen, no one has a crystal ball, but experts have released early predictions for home prices in 2025. Let’s dive in.
The Big Picture: National Home Price Predictions for 2025
It’s hard to believe 2024 is halfway over! Looking ahead to 2025, experts predict a slowdown in the national housing market's breakneck pace. Now, that doesn't mean prices are plummeting. In fact, the average forecast anticipates a +2.5% increase in national home prices for 2025. That would mark the 13th consecutive year of home price growth.
Home projections vary among major groups, with predictions running from a 0.3% increase to 4.4%:
Goldman Sachs: +4.4% growth in home prices in 2025
Wells Fargo: +4.3%
Mortgage Bankers Association: 3.3%
Morgan Stanley: 3.0%
Zelman & Associates: 2.3%
Fannie Mae: 1.5%
Freddie Mac: 0.5%
Moody’s Analytics: 0.3%
It’s Not a One-Size-Fits-All Picture
While national trends provide a useful overview, real estate is inherently local. [Local Market] might not follow the national average. Local factors such as the labor market, inventory levels, and specific regional economic conditions will play a significant role in shaping the housing market here.
For instance, areas with strong job growth and limited housing supply may continue to see higher price appreciation, while other regions may experience more modest gains or even slight declines.
Some of the key factors I watch every month include:
Inventory Levels
Interest Rates
Average Days on the Market
Median Sale Prices
List-to-Sale Price Ratio
If you want to be updated on the local market data, follow us on Facebook.
Navigating the real estate market in Sioux Falls in 2025 requires a blend of national insights and local expertise. By understanding the broader trends and keeping an eye on local market dynamics, you can make informed decisions whether you're buying or selling a home. Stay tuned for more updates and feel free to reach out with any questions or for personalized advice on your real estate journey.
Todd Headrick
In South Dakota, turn to Todd for a seamless real estate experience. Whether you're a first-time buyer, seasoned investor, or seller, Todd is your go-to realtor. With expertise in acreages and lake pr....
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The data relating to real estate for sale on this web site comes in part from the
Internet Data Exchange Program of the REALTOR® Association of the Sioux Empire, Inc.,
Multiple Listing Service. Real estate listings held by brokerage firms other than eXp Realty in Sioux Empire are marked with the Internet Data Exchange logo or the Internet Data
Exchange thumbnail logo (a little black house) and detailed information about them includes
the name of the listing brokers.
The broker(s) providing
