Will 2025 be the year you finally can buy a home? While uncertainty remains, there are some positive signs. Here’s what’s in store for the housing market this year:
- If you’ve been waiting for rates to drop, here’s some good news: Most economists expect rates to trend lower this year. Some predict they’ll fall to around 6.5%, while others see them trending slightly lower. It’s unlikely they’ll fall below 6%, so if you’re waiting for a magic number, you might be waiting a while.
- Most people have been sitting on the sidelines waiting for affordability to improve, but this year likely will see more people jumping into the market – not necessarily due to lower prices, but because they need to move on and move out. Fortunately, inventory is slated to improve by nearly 12% according to Realtor.com. However, all predictions rely heavily on the state of the economy, which could change with the incoming administration. A weaker economy equals lower rates, and a stronger economy equals higher rates.
- Despite some unknowns, one thing is certain: Loan limits are higher this year than last. We’re now accepting conventional loans up to $806,500 for one-unit properties in most states (Alaska, Hawaii and other high-cost areas have higher limits).
If you’re curious about other loan limits or have more questions about the upcoming year, don’t hesitate to consult with a professional.
