Homebuyers hold out for interest rate relief
For the first time in six weeks, mortgage rates are leveling off.
Fox – Seattle
After a year of high interest rates, many homeowners and homebuyers are wondering what the market will look like in 2025.
Realtor.com, one of the top real estate listing websites in the United States, released its predictions for how the housing market will look in 2025.
It doesn’t look like mortgage rates will return to the pre-pandemic 4% average any time soon. Thus, it is possible we will see similar trends to 2024 in a lack of homes for sale and home buyers, but that’s not what the organization is predicting for Tennessee and most of the South.
Here’s what Tennesseans can expect in 2025 from the real estate market.
Are housing prices in 2025 expected to increase or decrease?
The organization is predicting that home prices will grow about 3.7% in 2025 as they are predicting mortgage rates to be slightly lower than in 2024 with an average monthly rate of 6.3%.
“Mortgage rates are expected to keep mortgage payments essentially unchanged in 2025 despite continued home price growth,” the analysis wrote.
It’s likely that home sellers will still have the advantage over home buyers in 2025 with limited inventory and strong demands in high traffic areas. However, high interest rates could lead to fewer buyers being able to afford homes.
Buyers should expect a less competitive market than in past years, but it will be one…
