2025 Sneak Peek: Housing Sales to Rebound?

2025 Sneak Peek: Housing Sales to Rebound?

As 2024 comes to a finish, the year is set to close with around 4 million transactions — our lowest level since the 2008 financial crisis. For additional perspective, annual home sales over the past 20 years have averaged 5.15 million, peaking at 7 million in 2005. This year's decline was driven by higher mortgage rates, potential sellers holding off and limiting inventory, the Presidential Election, and affordability challenges for buyers. As housing forecasts for 2025 begin to emerge, the chart above highlights some of the current predictions for next year.

Ralph’s Take

Most experts anticipate roughly a 5% growth in home sales next year, though this remains below historical norms. While repeat buyers have shown hesitancy due to higher mortgage rates, life events and changes will eventually drive activity back into the market. The ongoing challenge of limited inventory defined much of 2024, but forecasts suggest an increase in active listings and sales next year.