What’s in Store for the 2025 Housing Market?

As we approach 2025, the real estate market is poised for notable changes that will impact both buyers and sellers, particularly in the New England region. At Berkshire Hathaway HomeServices Verani Realty, we are committed to providing you with the latest insights to navigate this evolving landscape effectively.

• Home Sales Rebound: After a period of slowed activity, existing-home sales are expected to increase by 7% to 12% in 2025, signaling renewed buyer confidence and market vitality.
• Moderate Price Growth: The median home price is projected to rise modestly by approximately 2%, reaching around $410,700. This tempered growth suggests a move toward a more balanced market, offering opportunities for both buyers and sellers.
• Stabilizing Mortgage Rates: Mortgage rates are anticipated to stabilize around 6%, providing a more predictable environment for financing home purchases. This stability is expected to encourage increased buyer activity.

The New England area, particularly cities like Boston and Manchester, is positioned to experience significant market activity:

• Boston: With a slightly lower-than-average share of homeowners locked into ultra-low mortgage rates, Boston may see increased inventory as more homeowners choose to sell. This shift could ease the current supply constraints in this competitive market.
• Manchester, NH: Known for its affordability compared to larger metro areas and its vibrant local economy, Manchester is expected to see steady demand from buyers. Its proximity to Boston, combined with a high quality of life, makes it an attractive destination for first-time homebuyers and those looking to relocate.

Several elements are contributing to these anticipated trends:

• Inventory Levels: An increase in available homes for sale is projected, offering buyers more options and potentially easing the competitive pressures seen in recent years.
• Millennial Buyers: As more millennials reach prime homebuying age, their participation is expected to drive demand, particularly for entry-level and starter homes.
• Economic Stability: Steady job growth and income increases, especially among young adults, are likely to support housing market activity and affordability.

• For Buyers: The anticipated stabilization of mortgage rates and increased inventory present a favorable environment for purchasing a home. However, it's essential to act decisively, as desirable properties may still attract significant interest.
• For Sellers: While demand remains strong, especially in sought-after areas, pricing your home competitively and considering strategic incentives can enhance its appeal in a market with growing inventory.

At Berkshire Hathaway HomeServices Verani Realty, we are dedicated to guiding you through these market dynamics with expertise and personalized service. Our deep roots in the New England area, combined with our commitment to trust, respect, and innovation, ensure that you have a trusted partner in all your real estate endeavors.

Sources
Market insights and projections are based on data and trends from industry-leading publications, including the National Association of REALTORS®, Barron’s, and MarketWatch. For more information, visit nar.realtor, barrons.com, and marketwatch.com