Here’s what to expect for home sales, interest rates, and market incentives

What does the future hold for the real estate market? We are now into December and as the holidays and the new year draw near, I’m also starting to get a lot of questions about what's going to happen in the real estate world in 2025.

Although I do not have a crystal ball and cannot predict what will happen, I do follow real estate experts who understand industry trends and what’s happening across the country. Just remember, these experts look at the big picture, not just what’s going on in Florida. So, while I won’t be making any bold predictions, I can share some insights.

1. Inventory and home sales. Inventory levels are expected to remain about the same, but home sales should pick up. We had a very slow home sale year in 2024, so we are predicting an increase in market activity. But, what will cause that potential increase? We feel that interest rates will come down a little bit, encouraging more buyers to jump in.

“Sellers are feeling more motivated, as evidenced by higher inventory.”

2. Interest rates. I know a lot of people are hoping for those 3% and 4% interest rates. I'm not sure we'll ever see those again. This year, interest rates hovered in the high sixes to low sevens. Many predictions suggest we will see them come down slightly, inching closer to the 6% range. However, your rates will still depend on factors like creditworthiness, the type of program you're using, and down payments.

3. Market incentives. It is predicted that rates will come down a little bit, causing an increase in demand for housing. We will see many great incentives for buyers. Also, sellers are feeling more motivated, as evidenced by higher inventory. Plus, builders are offering great incentives as well.

There’s a lot to talk about, especially when it comes to your specific situation. If you have questions or want to talk about your options, please don’t hesitate to reach out. You can contact us at (407) 499-8993 or chris@mypinnaclehomes.com. Let’s make sure you’re ready for whatever the new year brings.