Residential market trends have become notoriously hard to predict since the pandemic, but several 2025 forecasts appear to share some common threads.
Economic experts from Fannie Mae and Veterans United Home Loans are among the latest to offer their outlooks, providing insight into what consumers and industry professionals should expect in terms of market movement and borrowing rates next year.
Will 2025 bring more of the same?
Yes and no, according to the latest predictions.
“From an affordability perspective, we think 2025 will look a lot like 2024,” Mark Palim, Fannie Mae SVP and chief economist, said of the company’s forecast. But he noted that elevated mortgage rates and high prices could be partially offset by wage growth, which he expects “will outpace home price growth for the first time in more than a decade in 2025, slowly but surely providing some much-needed relief to potential homebuyers.”
While Joe Ellison, VP of capital markets for Veterans United, agrees that affordability will remain the “defining challenge” in 2025, he also believes we’ll see “a balance of opportunities and constraints” in the coming year as the market stabilizes.
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Author: AJ LaTrace
