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2025 Housing Market: Breaking Free from the Deep Freeze

by | Jan 15, 2025 | Buying, Market Stats, Selling

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Here’s some encouraging news about our housing market as we move through 2025: after what felt like an endless winter in real estate, we’re finally seeing signs of spring. As a team who works with homeowners and buyers daily, we’re noticing tangible shifts that could create opportunities for those who position themselves strategically.

The Market’s New Direction

The numbers confirm what we’re seeing on the ground – existing home sales are projected to reach 4.3 million this year (up from 4 million in 2024) according to Zillow’s latest forecast. This 15% year-over-year increase signals that the market is ready to move again, albeit at a more measured pace than the frenzy we saw in 2020-2021.

What This Means for Your Home’s Value

If you’re wondering about home values, expect modest but stable growth. Current projections point to a 2.6% increase in home values throughout 2025. While this might seem conservative compared to recent years, it represents a healthy, sustainable rate of appreciation that should give both buyers and sellers confidence in their decisions.

Interest Rates: A Welcome Shift

Here’s some promising news about mortgage rates: while we’re currently looking at 7.25%, industry experts anticipate rates easing to between 6.2% and 6.4% by year-end. This projected decrease could bring substantial savings for buyers and create new opportunities for homeowners considering a move.

Regional Market Insights

One fascinating trend we’re tracking is the dramatic shift in traditionally hot markets. The Sun Belt region, which has been red-hot for years, is now experiencing the fastest inventory growth in the country. For buyers in these areas, this means more choices and stronger negotiating positions. For sellers, it signals the importance of realistic pricing and strategic timing.

Making Smart Moves in Today’s Market

For Sellers:

  1. Price strategically from day one
  2. Invest in targeted improvements that truly move the needle
  3. Consider timing your listing around predicted rate drops
  4. Partner with professionals who understand the changing dynamics

For Buyers:

  1. Get fully pre-approved before starting your search
  2. Look beyond traditional high-demand areas
  3. Build relationships with local experts who can spot opportunities
  4. Stay ready to act when the right property appears

A New Era in Real Estate Services

In response to these evolving market conditions, we’re seeing innovation in how homes are bought and sold. Companies like Trelora are leading this change, offering sophisticated marketing and full-service support at breakthrough rates. Our innovative 1% listing fee structure – a significant reduction from traditional commission models – allows sellers to retain more of their equity while still receiving premium service from top-producing agents. This approach reflects a broader industry shift toward transparency and value-based services that align with today’s market realities, where every dollar of home equity matters more than ever.

Economic Context and Timing

With inflation hovering around 3% (still above the Fed’s 2% target), we’re watching for signs of further economic stabilization. Combined with projected wage growth, these factors suggest gradually improving affordability conditions for potential buyers.

Looking Forward

The remainder of 2025 presents unique opportunities for those who understand these shifting dynamics. While we’re moving toward a more balanced market, success will require careful timing and strategy. The key is working with experienced professionals who can help you navigate these changes effectively.

Making Your Move in 2025

Whether you’re considering buying or selling this year, the most important factor is having a clear, well-informed strategy. The market is becoming more nuanced, rewarding those who take a thoughtful, measured approach to their real estate decisions.

Remember, while national trends provide context, local market conditions ultimately drive your specific opportunities. Reach out anytime to discuss how these trends might impact your personal real estate goals for 2025.


Based on data from: Zillow Research, Yahoo Finance, National Association of Realtors, and Housing Wire

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The information contained in this blog is for general information purposes only, and while believed to be accurate, Trelora assumes no legal responsibility for accuracy. Information provided within should not relied upon as legal advice. Please consult with your local advisors for independent information regarding availability and applicability in your market.