Looking for the Silver Lining – 2025 Real Estate Forecast
It’s been a long, cold start to the new year and here we are on the last day of January! There were lots of opportunities this month for me to regroup, make new connections and listen to the insights of several real estate industry professionals about what is on the horizon in 2025 for buyers and sellers. Here are some common themes and some important takeaways for anyone who plans to buy or sell in 2025.
Real estate is LOCAL – right down to specific neighborhoods in a community. Rocky River’s Library District, Poet’s Corner in Shaker Heights…every community has them. An agent should have that kind of in-depth LOCAL knowledge to best serve their client.
Although the Federal Reserve intends to make a series of modest interest rate cuts this year, mortgage interest rates will most likely stay in the range of where they are now, possibly dipping to 6% at some point. If you are trying to determine your buying power, keep this in mind. A substantial dip is probably not going to happen.
Inventory will continue to be a challenge. There continues to be more buyers than sellers. Baby boomers are staying in their homes much longer and those homes are not available to first time or move up buyers. If you’re waiting for inventory to significantly increase and prices to decrease, you will be waiting for a year – probably longer.
Buyers will continue to encounter multiple offer situations, pay asking price (or more) and offer other concessions to be the winning offer for well-prepared and well-priced homes. Buyers will have to be prepared and be comfortable with being slightly “uncomfortable.”
Sellers will realize that 2025 buyers are different than the buyers of 2021 and 2022 who were willing to offer just about anything for a home. Their buying power has decreased with the rise in interest rates and home prices. Buyers are willing to pay for a home that is well priced and well-prepared for sale and they know an over-priced home when they see one. Sellers and their agents must put their best foot forward at the start.
Will the 2025 real estate market in Northeast Ohio continue to be challenging? Yes. Impossible? No. What can buyers and sellers do to achieve their home goals? Be willing to embrace the local real estate forecast and partner with an agent who is committed to getting buyers and sellers to their next chapter. Stay tuned for specific strategies for your real estate journey. There’s always a silver lining!