Above (L-R): Rob Barber, Darryl Davis, Lisa Sturtevant and Rick Haase.
With all eyes on the year ahead, real estate professionals across the board are busy preparing for what’s next. And while there’s no crystal ball to predict exactly what the 2025 housing market will look like, we asked a few of our 2024 Real Estate Newsmakers the following question:
“What trends and issues do you see impacting the real estate market as we head into the new year?”
Here’s what they had to say:
Futurists
Rob Barber
CEO
ATTOM
“The housing market is influenced by various factors like mortgage rates, economic conditions and home supply. Although predicting market trends is complex, current indicators suggest potential modest gains. Mortgage rates have decreased by more than a percentage point in the last year, nearing 6%, which reduces monthly costs and boosts demand. Simultaneously, the supply of homes remains limited, about half of what it was five years ago, further driving up prices. Factors such as strong employment and stable inflation also enhance buyers’ ability to purchase homes. However, rising home prices continue to challenge affordability. Overall, the market appears set for modest growth unless there are significant changes in these influencing factors.”
Influencers
Darryl Davis
CEO
Darryl Davis Seminars
“Trends likely to hold in 2025 include suburban and exurban growth (as affordability and space remain key concerns, this trend is expected to continue), sustainability and energy efficiency (government policies continue to drive demand), technology integration in homes (smart home technologies are becoming standard in new builds and retrofits), the single-family rental market (institutional investors increasingly buying single-family homes for rental purposes), work-from-home amenities (homes with office spaces or flexible room configurations are still in demand) and multi-generational housing (the aging population and cultural shifts will keep this housing type popular).
Trends likely to change in 2025 include interest rate adjustments (experts predict a slight decrease in mortgage rates), a shift in buyer preferences (prioritizing cost savings over size), urban revival (urban demand may rebound as cities adapt post-pandemic), the rise of co-living spaces (co-living spaces have gained popularity in high-cost urban centers) and a decline in open-plan layouts (the need for privacy and dedicated workspaces is driving buyers toward segmented spaces).”
Influencers
Rick Haase
President & COO
United Real Estate & United Real Estate Group
“The market will continue to balance itself in the direction of the much coveted ‘soft landing’ that the Federal Reserve is attempting to orchestrate. The delicate dance between employment/unemployment levels and consumer confidence coupled with the interest rate easing cycle that the Fed has now committed to will bring a slowly increasing existing-home sales rate. Home price inflation will continue to slow but remain solid and slightly increasing. Brokerage consolidations will accelerate as more companies find the climate of high agent compensation and highly inflated operating expenses brings intense pressure on gross and net profit margins.”
Influencers
Lisa Sturtevant
Chief Economist
Bright MLS
“Trends holding into 2025 include prospective sellers watching mortgage rates and evaluating whether they’re willing to give up their low rate to move into a new home. Affordability will still be a major constraint for some homebuyers, while inventory will still be low by historical standards. Trends changing in 2025 include the amount of time homes stay on the market lengthening, giving buyers more time to make decisions. Buyers will also have more leverage and the ability to ask for concessions from the seller. There will also be more buyer demand in places closer to employment centers.”
Visit https://www.rismedia.com/2024-newsmakers to learn more about this year’s Real Estate Newsmakers.
