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Experts Predict Home Values to Increase
The 2025 Real Estate Report
Experts Predict Home Values to Increase 1.5% to 3.6% in 2025.
Top housing experts and economists give a glimpse of what mortgage rates, home values and the national real estate market will do in 2025.
Key Takeaways
● Mortgages are forecasted to remain higher for longer; but there are things you can do to lower your rate.
● Home values are predicted to increase incrementally on a national level; and there are projects you can do to increase your home’s value.
● The national market will slightly favor sellers in negotiations; however, real estate is driven by local dynamics and may favor either buyers or sellers.
Note: real estate is a dynamic market and forecasts made in this article will change as the year unfolds.
Mortgage Rates Will Average 6.4% in 2025
In 2023, the average 30-year mortgage peaked at 7.79% following the pandemic. Rates came down from that peak in 2024. What will mortgage rates do in the next year?
The Federal Reserve is predicted to lower the federal funds rate 6 to 8 times in 2025; but mortgage rates are not set by the Federal Reserve and may not drop significantly (National Association of REALTORS®).
Fannie Mae predicts mortgage rates to average 6.4% in 2025. Mortgage Bankers Association also predicts mortgage rates to average 6.4%, but with slightly higher rates compared to Fannie’s forecast.
Sources: Fannie Mae Housing Forecast: November 2024 and
Mortgage Bankers Association Mortgage Finance Forecast: November 2024
When Will Mortgage Rates Drop Back to 3%?
Historically, rates have never been as low as the pandemic era interest rates. 30-Year mortgage rates averaged between 4% and 6% during & after the housing crisis and Great Recession. A return to a 3% range is very unlikely.
Source: Federal Reserve of St. Louis
Tips to get a better mortgage rate…
While we can’t affect the average 30 year mortgage rate, you can improve your credit and get the best possible rate. Here’s an example of recent mortgage rates by credit score:
Source: myFICO.com
If you’re thinking of making a move, the earlier you talk to a mortgage finance professional, the more time you have to work on improving your credit to get a better rate.
Need a recommendation to a trusted lender? Send me a message.
Home Values Will Increase by 1.5% to 3.6%
Since 2020, the average sales price of a home has gone up by $97,000 or 29.7% (Federal Reserve of St. Louis). Which indicates homeownership to be a great investment. But, what will home values do in the next year?
On a national level, home price growth is predicted to slow down from 2024. However, home prices are predicted to increase in 2025. Fannie Mae predicts home prices to increase on average by 3.6%. MBA is predicting an average increase of 1.5%.
Sources: Fannie Mae Housing Forecast: November 2024 and Mortgage Bankers Association Mortgage Finance Forecast: November 2024
Home values are influenced by local market dynamics. If you want to understand what home values are forecasted to do locally, consider talking to a real estate professional.
Want to increase your home’s value? Consider these remodeling projects for the highest return on investment.
Will Home Values Crash in 2025?
For home values to drop significantly, a major influx of homes for sale would have to hit the market. Freddie Mac estimates the U.S. housing stock is 3.7 million units below what’s needed to meet demand. It will take time to build up inventory to meet demand. Which is why a major drop in home values and prices is unlikely.
Will 2025 Be a Home Buyers or Sellers Market?
Who will have the advantage in the 2025 housing market, buyers or sellers? One measure of the market is Months Supply and it shows who has the advantage.
Months Supply is calculated by dividing the total number of homes for sale by the average number of homes sold each month. For example if there are 500 homes for sale in a particular area and an average of 100 homes are selling each month, the Months Supply is 5 months.
Here’s a chart of month’s supply going back to November of 2023:
Source: Federal Reserve of St. Louis
6 Months Supply is considered a balanced market. Over 6 months supply is considered a buyers’ market. Below 6 months supply is a sellers’ market. At 4 months supply on a national level, the market slightly favors sellers.
Inventory is rising nationally, however, which could shift the market to favor buyers in the next year. With that said, all real estate is local and local markets will differ in favoring buyers versus sellers.
If you want to know if your area favors buyers or sellers, send me a message.
What This Means for Homeowners
If you own a home, you will likely see a slight increase in your home's value. If you want to increase your home’s value and enjoy the upgrades, consider making some home improvements. If you want advice on which features or projects are best suited for increasing your home’s value, consult with a professional.
Tips for Potential Home Buyers
If you’re thinking of purchasing a home, the sooner you start planning the better. Knowing your price range, optimizing your credit, and working towards your downpayment are steps you can take now. Even if you’re in the market to buy in the next 12 to 24 months, talking with a real estate professional early in the process will set you up for success.
Tips for Potential Home Sellers
Sellers need to prioritize their objectives. Is getting top dollar for your home the highest priority, is it moving within a specific timeframe? Do you have to sell a home prior to purchasing your next one? These objectives must be prioritized so that an effective plan and marketing strategy can be put into place. Thinking of making a move? Talk to a real estate professional!
Maryland Real Estate Professionals Real Estate Outlook
Central Maryland Housewarming Extravaganza
Welcoming You To Your New Central Maryland Home
Congratulations on your decision to purchase a new home! 🏠 There’s something magical about stepping across the threshold into a space that’s truly yours. The scent of fresh paint, the echo of footsteps on hardwood floors, and the promise of countless memories waiting to be made—it’s a feeling like no other. And what better way to celebrate this milestone than with a Free housewarming party?
That's correct, when you work with a Maryland Real Estate Professionals team member and one of our preferred lenders, we will provide you with the housewarming gift of a housewarming party!
Why a Housewarming Party?
A housewarming party isn’t just about showing off your stylish decor (though that’s definitely part of it!). It’s a chance to open your doors wide and invite friends, family, and neighbors to share in your joy. Here in Central Maryland, we know how to throw a memorable gathering—one that combines warmth, hospitality, and a dash of local flair.
A Housewarming Party Is The Perfect Venue
When you work with a Maryland Real Estate Professional Team Member and on of preferred lenders to purchase your home, we will give you up to $500 towards a housewarming party! Now isn't that an amazing housewarming gift!
After we help you purchase your home, you choose a date that suits your schedule and gives you enough time to settle into your new abode. Maybe you’ve hung up your favorite artwork, arranged the furniture just so, and found the perfect spot for your morning coffee. Now, let’s set the scene for your housewarming party. Whether you have a cozy townhouse in Annapolis, a chic loft in Baltimore, or a sprawling estate in the Frederick County countryside, your home will be the star of the show.
Invitations For This Amazing Housewarming Gift That Spark Excitement
If you provide the Maryland Real Estate Professional team member your guest list, we will send out digital invitations to your guests. HAKUNA MATATA - We want to keep it hassle-free by using platforms that allow you to save invitations as images on your phone. A quick text message with all the details will have your friends marking their calendars. Remember to choose a range of time (say, 3-6pm) rather than a strict starting time. An open-house style party lets guests come and go as they please, without worrying about being late.
Delicious Bites and Sips
Now, let’s talk about the heart of any gathering—the food! Maryland Real Estate Professionals and our preferred lender will provide you with a housewarming gift, so that you will be able to purchase food for the party! For a housewarming party, opt for dishes that are easy to prepare ahead of time. Think bite-sized nibbles, colorful charcuterie boards, and refreshing drinks. Here are some ideas:
- Charcuterie Board: Arrange an assortment of cheeses, cured meats, olives, and fruits. Add some crusty bread and gourmet crackers for a delightful spread.
- Welcome Home Cocktails: Create a signature drink for your party. How about a refreshing Maryland mule with local ginger beer and a splash of bourbon?
- Sweet Treats: Offer a selection of cookies, brownies, or mini cupcakes. Bonus points if they’re homemade!
Maryland Real Estate Professionals Housewarming Gifts That Wow
As guests arrive, greet them with a warm smile and perhaps a small token of appreciation. Here are some thoughtful housewarming gifts ideas:
- Personalized Cutting Board: Engrave it with their new address or a sweet message.
- Custom Home Map: Capture the location of their new home in a beautiful print.
- Indoor Plants: A touch of greenery adds life to any space.
- Welcome Home Sign: A charming addition to their entryway.
- Cookbook: Inspire their culinary adventures in the new kitchen.
Our friends over at DC Laser can help you come up with some amazing housewarming gifts! Just go to www.dclsr.com
Central Maryland Vibes
Maryland Real Estate Professionals has Central Maryand Covered! We know that Central Maryland is a place of contrasts—where historic meets modern, and cityscapes blend with natural beauty. Take inspiration from the region as you decorate your home. Incorporate nautical elements from Annapolis, embrace the industrial chic of Baltimore, or infuse your space with the tranquility of the Chesapeake Bay of the vast countryside of Caroll, Frederick and Washington Counties. Central Maryland is a beautiful place to work, live and play!
Memories in the Making With The Maryland Real Estate Professionals Team!
As the sun sets and the laughter echoes through your rooms, remember that this housewarming party is more than just an event—it’s the beginning of a chapter. A chapter filled with shared meals, cozy movie nights, and impromptu gatherings on the patio. So raise your glass, toast to new beginnings, pass out those housewarming gifts and welcome everyone to your Central Maryland haven.
Whether you’re hosting or attending, a housewarming party is a beautiful way to celebrate the journey of finding and creating a home. Cheers to you and your fellow Marylanders! 🥂🏡 Remember when you work with Maryland Real Estate Professionals, you are working with true professionals, who will look out for your best interest when you are buying your dream home! And don't forget that if you are looking for amazing ideas for housewarming gifts, you want to reach out to DC Laser. They are creative and have wonderful housewarming gifts!
