What will 2025 hold for the real estate market?

Buyers and sellers alike have struggled for the last couple of years in the real estate market.

Buyers contending the high interest rates and low inventory and unmotivated sellers.

Sellers and “would be sellers” have also had a hard time contending with a fickle buyer pool and changing tides that shift almost daily. We say “would be sellers” because we speak to homeowners nearly daily who want to make a move but the market conditions cause them to hesitate. 

Add the confusion over commissions and who is paying who has added a challenge that a lot of consumers don’t want to address or prefer to wait until the dust settles before making a home buying or selling decision. 

Finally, the data we have had to help our clients make decisions has also been challenging to make sense of. For the past year our data in Massachusetts has shown more inventory, up 20-25% in some cases, but only marginally increased sales, more like 3%.  That would point to a stabilization of prices and higher days on market but the opposite is true with most markets reporting higher prices and fewer days on market. 

The only winners in the industry are the home owners that are  exiting the market. At Focus Real Estate, so many of the listing sales we have done were with rental property owners. These are the folks that moved during or before Covid and are done being landlords. We represented many people in the past 24 months in these situations.

So what is in store for 2025? There are a lot of indications that the interest rates will soften which will motivate both buyers and sellers alike. Add to that a pent up demand in the market for home owners that have put off a move that they have wanted to make for a few years and it appears that will help to increase inventory.

Of course, this is all national news that is easy to discover by reading the news or simply googling “2025 real estate market.” What we are seeing in our hyper local market is that the demand from buyers continues to be strong. The past few weeks have been filled with new buyers entering the market and attending our open houses. There have been a number of properties we have listed in December that have had multiple offers from a very motivated buyer pool. Additionally, during the fall of 2024 our office has fielded more phone calls from sellers ready to make that move they have been putting off for years. So yes, we are seeing the signs in our local market indicated by what the national press is reporting.

If this resonates with you, feel free to reach out for more information on how these changing market conditions will affect you and your home buying and selling power.