2025 Residential Real Estate Forecast

**1. Market Trends:

• Moderate Growth: Home prices are expected to rise moderately, with annual gains slowing down compared to previous years.
• Inventory Increase: More new and existing homes will enter the market, helping to ease inventory shortages.

**2. Mortgage Rates:

• High Rates: Mortgage rates are projected to hover around 6-7%, making borrowing more expensive.
• Economic Impact: High rates may limit home sales, but improving job numbers and stock market gains could boost buyer confidence.

**3. Buyer Demographics:

• Diverse Buyers: Growth in all-cash buyers, multigenerational purchases, and single buyers.
• Pent-Up Demand: Many potential buyers are waiting for more favorable conditions, but some are re-entering the market.

**4. Sustainability:

• Eco-Friendly Properties: Increased demand for sustainable, durable homes that can withstand extreme weather.
• Renovation Projects: Focus on renovating existing properties to meet eco-friendly standards.

**5. Technology:

• AI-Driven Insights: Use of AI for property analysis and market predictions, helping investors make informed decisions.
• Virtual Reality: Enhanced use of virtual reality for property tours and remote viewings.