The national projections for home values came out.
Did you see it?
Fast Value: If history continues to repeat itself, our market will go up faster than the rest of the market. Meaning if prices go up, they go up more here. If prices go down, they go down less here. Now the question… does this change whether or not you’re planning to make a move? Probably not.
Without boring you with the details… Almost all the predictions call for a normal year of price appreciation.
These economists are predicting between a 0% to 6% price appreciation in 2025. Now remember, these are national numbers. This factors in Texas and California. Texas’ market is falling through the floor while we’re staying steady in SoCal.
So what is the outcome going to be?
Honestly, who knows?
Our prediction is that it’ll be a pretty normal year with a few material changes.
Big changes…
– More people will put their homes on the market
– We’ll finally return to more of a neutral market
Both of these things are good for everyone. However, a few things have kept sellers on the sidelines for the last few years.
Reason One: Most homeowners need to sell before they can buy. Most of their net worth is tied up in their equity. Selling and buying at the same time is hard in a seller’s market because you have to be competitive on the buy side. Otherwise, you won’t be moving.
After the changes: Selling and buying contingent is already more doable than it has been in the last 4 years. This will allow more contingent homeowners to buy and sell, creating demand that has been locked up.
Reason Two: Homeowners who have locked in historically low interest rates might need access to their equity. Debt is at an all-time high. A lot of homeowners took out HELOC loans or racked up a ton of debt. It may actually be cheaper for them to refinance out of that 3% interest rate.
A lot of these homeowners have also wanted to make a move, but have felt ‘stuck’ because of their low interest rate. This will also lead to even more inventory.
Reason Three: There were a lot of buyers that got into their loans with a temporary buy down over the last few years. Well, those ‘temporary’ timelines are going to start coming due. Refinancing or moving will become options that they might exercise.
Reason Four: There has been a lot of pent-up demand for buyers who missed the last wave in 2020 – 2022. They might be sitting on the sidelines because they haven’t been able to find anything they liked. The increase number of listings and slightly better interest rates will bring in a new buyer pool in 2025.
You might be asking, “Is 2025 going to be a good year to make a move in?”
The answer is “it depends” as it always is.
Sorry, there isn’t a one size fit’s all answer.
It might make sense for your situation. Or… it might not. If you want to talk to one of our agents about it, Go to OnyxHomes.com and click ‘buy’ or ‘sell’ to get started.