As 2024 draws to a close, it’s time for buyers, sellers, and renters to prepare for what the housing market will have in store next year. price growth hit 4 percent in 2024, up from 1.1 percent in 2023, while average mortgage rates hovered around 6.3 percent, according to Realtor.com’swas $420,400, a 32 percent jump from Q3 2020.
Per the experts, home prices are projected to soar an additional 3.7 percent within the next year after hitting an. On the upside, when it comes to supply, inventory is expected to surge 11.7 percent, making the market less competitive and giving buyers more time to negotiate. However, those who have been waiting on the sidelines may actually drive up the number of home sales in 2025.
“Prices are going to keep rising because we’re not going to have a recession,” Ralph McLaughlin, a senior economist at Realtor.com, told. “If you look at the times that home prices fall, it’s typically only when there’s a recession, and only when people are forced to sell.” albeit slightly as more units become available. Nationally, a construction boom which began in 2024 has significantly increased the number of available units.