February 2025 Housing Market Forecast: What Buyers and Sellers Need to Know

Hello, Germantown!

As 2025 kicks off, the housing market is already buzzing with some noteworthy trends. Whether you’re looking to buy, sell, or just stay informed, I’ve got the latest insights to help you navigate the year ahead with confidence.

I’m Kelly Day with simpliHŌM, and I’m here to make real estate simple for you. Let’s dive into what this year has in store for the market!

Mortgage Rates: A Slow but Steady Decline

After years of fluctuating rates, we’re finally seeing some relief on the horizon. While we’re not heading back to those ultra-low 4% rates, experts predict mortgage rates will hover between5.9% and 6.5% throughout 2025.

So, what does this mean for buyers? Lower rates improve affordability, translating to smaller monthly payments and a better opportunity to lock in your dream home. However, with inventory still tight, competition may take a little while to heat up.

Home Sales: A Modest but Promising Growth

After a quieter market in 2024, this year is expected to bring a 2.5% increase in existing home sales, reaching between4.1 and 4.4 million homes sold nationwide. Why the uptick?

• Many sellers who paused their plans during last year’s elections are ready to list.

• Tight inventory continues to push demand, making now a great time to sell.

Home Prices: Steady Appreciation

Good news for homeowners and sellers: home prices are projected to rise by 3.1% in 2025. Even with more homes expected to hit the market, inventory levels are still too low to meet buyer demand. This means sellers can still capitalize on strong pricing, while buyers have the opportunity to invest in properties that will grow in value.

What This Means for You

• For Buyers: With rates on a slow decline and prices continuing to rise, now is the perfect time to make your move. Acting early can help you secure a more affordable home before the market becomes more competitive.

• For Sellers: Demand is still strong, and rising prices mean you’re in a great position to maximize your home’s value. Whether you’re upsizing, downsizing, or simply ready for a change, 2025 is shaping up to be a fantastic time to sell.

Let’s Make 2025 Your Year in Real Estate!

Having a knowledgeable and experienced agent on your side is key to navigating today’s market. Whether you’re buying or selling, I’m here to guide you every step of the way.

Let’s connect to chat about your goals and how we can make them happen! Together, we’ll make your real estate journey simple and stress-free.

📞 Ready to get started? Give me all!

Let’s make this your best year yet in real estate!