Moving Words – 2025 Real Estate Market
Timothy Brady
“All of us might wish at times that we lived in a more tranquil world, but we don’t. And if our times are difficult and perplexing, so are they challenging and filled with opportunity.” Robert Kennedy, Sr.
A major part of the moving and storage industry concern is ‘what’s the housing market going to do in 2025?’
The first consideration must be the change in the political environment. With the Republicans controlling the House, Senate and Executive branches of the federal government, new policies are in the wind. There’s the question of how the new presidential administration could affect housing. If President Trump implements a significant portion of his proposed tax cuts and tariffs, will the economy stay strong? The Fed is indicating it may hold back cutting rates for at least the first two quarters of 2025 which will keep mortgage rates high. The positive side is the Republican sweep of the three governmental branches has improved builder confidence, bringing renewed optimism that many regulations covering the construction industry may be eased.
According to a recent article on BankRate.com:
Those wanting to purchase a home in 2025 will likely find it still tough, but promising. According to Lawrence Yun, Chief Economist, National Association of Realtors – “Home sales momentum is building. More buyers have entered the market as the economy continues to add jobs, housing inventory grows compared to a year ago, and consumers get used to a new normal of mortgage rates between 6 percent and 7 percent.”
However, “The prospect of elevated mortgage rates throughout 2025 suggests that housing market activity will continue to be challenged,” says Selma Hepp, chief economist for real estate data firm CoreLogic. “Lack of affordability and continuation of the lock-in effect will keep sellers on the sidelines.”
According to Greg McBride, Chief Financial Analyst for Bankrate, “Most areas will still lean toward a seller’s market due to limited inventory. However, those markets that have seen a surge in inventory will definitely be more of a buyer’s market and will be susceptible to price declines.”
In conclusion:
From all indications, 2025 will see a continuation of mortgage rates in the 6 to 7 percent range along with higher home prices and lower numbers of houses for sale. This will create a difficult year for both buyers and sellers. The one bright light is buyers apparently are no longer be waiting for mortgage rates to drop, as seen by a recent increase in real estate properties sales. Could this be an inkling that 2025 is going to be better than 2024?
Factors such as changing economic policies, the ongoing adaptation to new work practices, and the increasing migration towards the Sun Belt will play pivotal roles. Additionally, the rapid growth of the digital economy is expected to bring new opportunities and challenges to the relocation industry. As we move through 2025, keeping a vigilant eye on these evolving dynamics will be crucial for navigating the intricate landscape of the household moving market. The overarching sentiment is still one of cautious optimism, as stakeholders adapt to the shifting sands of the political, economic, and social environment. In other words, hang on, it’s going to be one challenging – but interesting – ride.
“Begin challenging your own assumptions. Your assumptions are your windows on the world. Scrub them off every once in a while, or the light won’t come in.” Alan Alda
