For the first time in nine years, Realtor.com Projects that the real estate market in 2025 will be “balanced”, since inventories and demand should be in sync with each other.

Realtor.com projects that the inventory of single-family homes will increase by 13.8% and the inventory of existing homes for sale will increase by 11.7%.

President-elect Donald Trump has pledged to make major regulatory changes during his second term. Realtor.com notes that Trump’s proposals to address the housing shortage include making more federal land available for housing construction, which could help bolster supply.

“While President-elect Trump can work quickly with his administration to implement some regulatory changes, other policies that will affect housing, such as tax changes and broad deregulation, require cooperation from other branches and levels of government ” said Danielle Hale, the government’s chief executive. economist for Realtor.com. “The magnitude and direction of a Trump boost will depend on which campaign proposals ultimately become policy and when. For now, we expect a gradual improvement in housing market dynamics fueled by broader economic factors The new administration’s policies have the potential to improve or hinder the housing recovery, and the details will matter.

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Other highlights from Wednesday’s report include:

Slight drop in mortgage rates. Thirty-year fixed mortgages currently average 6.8%. Realtor.com projects the average mortgage rate will fall to about 6.3% in 2025 and could reach 6.2% by the end of the year.

Home sales prices will increase. Homes will sell 3.7% more in 2025 than in 2024, Realtor.com predicts. In 2024, house prices will increase by 4% and in 2023, by 1.1%.

Realtor.com previously reported that over the past 22 years, home sales prices have increased by an average of 4.2% per year nationally. 2025 is expected to mark the third consecutive year of below-average house price increases. Prices increased 35% during the 30-month period from early 2020 to mid-2022, Realtor.com reported.

Higher inventory should mean it’s not really a buyer’s or seller’s market. Realtor.com expects 2025 to have the highest inventory for sale since December 2019 and nearly 20% of listings to benefit from price drops. Realtor.com says mortgage rates will ease somewhat, but not enough to call it a “buyers’ market.”

The housing market depends on where you live. If you’re planning to move to the Phoenix area, expect to spend 13.2% more on a home in 2025 than in 2024. If you’re buying a home in Albuquerque, expect to pay less in 2025.

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