What Could The New Administration Bring To The Housing Market?

2025 is just around the corner! What could the new Administration bring to the housing market? Let's break it down.

In 2025 and beyond, experts predict an up-tick in home sales compared to 2024, with the inventory levels around 30% higher in 2025.  This is due to life-changing events such as marriages, babies, divorce, jobs, and deaths. Basic supply and demand will change the housing market. 

Mortgage rates are better than they were a year ago when they piqued at about 8%.  We are expecting six to eight rounds of cuts to the FED Funds Rate, but mortgage rates may not fall. The high Government deficit keeps rates high.

Rates could decrease if Trump ramps up new construction and Elon and Vivek reduce government waste spending. Mortgage rates can fall, if Trump brings people back to the labor force. Housing experts predict rates are expected to be between 5.8% to 6.2% with some experts cautiously hopeful that rates could be in the lower fives, but they preface that this is hopeful.

Additional forecasts show, existing homes sales are expected to rise about 9%, new home sales around 11%  and the median home price to rise about 2%.  Mortgage rates likely near 6% and job gains near 2 million.

If you would like to learn what’s happening locally in your area, it is always important to reach out to your local real estate expert to give you the most up-to-date numbers. Feel free to connect with me for more market trends in both WA and AZ.