After reading many articles, looking at quite a few statistics and then trying to put it all together, I wanted to give my readers a viewpoint on what I see as a possible outlook for the Real Estate Market for 2025. (this information came mainly from Realtor.com & Albuquerque local MLS information)
MORTGAGE RATES & HOME PRICES
It is expected mortgage rates to average 6.3% throughout 2025, ending the year around 6.2%. This should keep monthly mortgage payments relatively stable despite continued home price growth.
Home prices are forecasted nationally to rise by 3/7% in 2025, which is slightly lower than the 4% growth expected for 2024. Locally, the median home price in the greater Albuquerque area is $360,000 which is up 5%.
Locally, the medium price per square foot is $208.00, up 5.1%.
HOME SALES TRENDS
Home sales are expected to increase by 1.5% compared to what we saw locally for 2024 at 2.8%.
Sellers will need to remain sensitive to mortgage rate shifts, with pent-up demand expected to drive more activity during the summer months when rates are being forecasted to ease.
FOR-SALE TRENDS
Inventory levels of homes are projected nationally to increase by 11.7%. Locally, the median supply of homes is 2.6 months which is up 15.4%. With the inventory increasing this can help balance the price growth for homes.
The medium number of days on market locally is now 38, up 35.7%. With an increase of homes and the length they are staying on the market, this can help buyers by giving them more options.
POLICY & ECONOMIC IMPACT
President-elect Trump’s administration could drive shifts in tax policies, regulations and housing supply.
There is the potential tax cuts and higher economic growth which may boost disposable income therefore improving housing affordability.
TAKEAWAYS
Buyers may experience a more favorable market if inventory continues to rise, although there may still be affordability challenges for them.
Sellers should be considering flexible strategies to attract buyers as the market becomes more balance for both buyers & sellers.
First-time buyers could benefit from possible new down payment assistance programs, although high rates will still remain a hurdle.
As I stated above, this is my viewpoint of the 2025 Real Estate Market from all the information I have read.
If you are looking at either buying or selling this coming year, give me call or send me an email. I am here to help you obtain your real estate goals for 2025!
8500 Menaul Blvd NE Suite A-240
Albuquerque, NM 87112
505-639-2090 Mobile
505-554-2213 Office
MaryCockburn.Realtor@gmail.com
www.marycockburn.com
