Housing Market Forecast 2024 & 2025: Predictions for next 5 years

  • According to some experts, the real estate forecast for the next 5 years shows that it will be a balanced market

  • In 2023, the national annual median price for homes for sale is projected to rise by another 5.4%, which is less than half the pace seen in 2022

  • Chief economist for the National Association of Realtors Lawrence Yun believes we are likely to see total price growth across the country of between 15% – 25% over the next five years

  • According to Goldman Sachs, home prices in the United States will fall 5 to 10% over the next year

  • Assuming no major shocks occur, we should see 30-year fixed rate mortgage rates of 5.5–6% within the next two years

  • According to survey respondents, the inexpensive Midwest markets that are least likely to see home price declines over the next 12 months are Columbus, Indianapolis, and Minneapolis

  • Markets expected to cool the fastest — with 77% of respondents expecting declines — are those that experienced the most growth during the pandemic, such as Boise, Austin, and Raleigh

  • Rent growth should remain strong in the short term as high home prices keep many would-be first-time buyers in the rental market

 

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