Top Agent Magazine Predicts the Future of Real Estate – and it’s MORE than hopeful

Top Agent Magazine Predicts the Future of Real Estate –
and it’s MORE than hopeful

Real estate prices have been climbing steadily for over a decade, prompting questions about what’s next. During the pandemic, a buying frenzy pushed prices beyond expectations. While higher mortgage rates eventually slowed the pace, prices have remained stubbornly high. Now, as the market approaches a potential shift, agents, investors, and buyers are hoping for signs of flexibility in the coming year.

Top Agent Magazine’s experienced agents, who have navigated both booms and downturns, foresee an encouraging 2025. Many expect lower mortgage rates and increased activity to bring renewed energy to the market. Debra Johnston, a top agent in Atlanta, says, “My prediction for 2025 and the Atlanta market is that we will be one of the stronger markets because of relocations that we are seeing now from other parts of the country.”

While some U.S. markets struggle to offer value, forcing buyers to pay high prices for less space, Johnston believes the Southeast stands apart. “While housing prices continue to rise, the Southeast continues to demonstrate what you can get for your money as well as an excellent lifestyle and quality of life.”

Buyers and sellers

As younger generations make their way into the real estate market, competition may remain strong for some time. REALTOR® Gary Kalligher of Minnesota explains, “My outlook for the market is positive, with continued strength from the buyer sector. Millennials continue to make up a significant portion of the real estate market and are coming into their prime consumer years.”

Though prices may increase, we probably won’t see them jump extremely high. Most experts predict (at the time of publication) a 2-3% increase in the average home price. “It’s reasonable to expect continued volatility and uncertainty in mortgage rates, nominal inventory growth and some decline in the price growth we’ve seen in recent years,” Kalligher explains.

While no one can guarantee where mortgage rates will go in the coming year, after experiencing many increases over the last couple of years, many experts are expecting a decline. Fannie Mae, the Mortgage Bankers Association (MBA), the National Association of Realtors (NAR), and Wells Fargo believe by the end of next year, we will likely be in the high 5% range, a welcome relief from the peak of 7.79% in October 2023.

Jim Brunswick, a top real estate agent in Colorado, echoes this outlook. “I predict that 2025 will see some softening of interest rates and a market that slightly favors sellers again.”

Top REALTOR® and insider of Hawaii real estate , Erica Amundson adds that with market shifts, it’s crucial for buyers and sellers to stay informed. “As this sleepy market wakes up again, it’s never been more important to understand how your local micro-market intersects with the regional and national landscape. Keep your long-term and immediate goals clearly defined and adjust with actions accordingly to keep on track.”

With a more balanced market on the horizon, many agents published in Top Agent Magazine believe the coming year will bring needed relief for their clients. Lower mortgage rates and a gradual easing of price increases offer optimism to those waiting for a more accessible market. While uncertainties remain, these experts see the coming year as a chance for stability and opportunity in real estate.