As Predicted, Here Comes the Housing Market Upswing!
I have some great news to share that we’ve all been dying to hear: economists are now predicting a turnaround for home sales come 2025. Lawrence Yun, chief economist for the National Association of Realtors®, forecasted during NAR’s latest Real Estate Forecast Summit that mortgage rates should fall over the next few months, and inventory will likely pick up.
Mortgage Rates Are Actually Historically Lower Than Average Right Now
It may not feel this way, but some economists are even saying that the competition for real estate has always existed, and mortgage rates aren’t actually high—they’re a bit lower than the historical average.
Mortgage rates are around 7% right now, so if it seems like a big jump, there’s a reason. Because rates bottomed out during the pandemic in the 2% range, people got used to seeing those kinds of numbers as normal when they weren’t. That’s the simple truth.
In addition, the number of offers is still historically high. A recent Florida Realtors article maintains a strong market, with the average number of offers coming in at three per listing, which is higher than usual.
An Uptick in New Home Sales and the Potential For More
The demand for inventory hasn’t disappeared due to any lack of inventory. Where builders can build more real estate, they sell more real estate, according to economist Yun.
Yun goes on to discuss the growth of the U.S. population to 70 million, comparing it to 1995, the last time home sales were this low: “There is a large pent-up, stored demand that could be released into the marketplace when conditions improve—lower mortgage rates and more inventory,” he said.
Which he also states will probably be soon. “Inventory is finally turning up—up about 15% —and that likely is an early leading indicator that we may finally see more home sales as conditions improve,” says Yun.
Food For Thought: Buyers Are Single with No Kids and Planning to Age in Place
Interestingly, according to the same article from Florida Realtors:
- Almost a third of buyers are single
- Households with no children are at an all-time high
- Buyers want homes where they retire or house multiple generations
- First-time buyers made up 31% of sales this past May (due to less competition from repeat buyers)
What’s more – we’re seeing much more diversity in the buying game: Asian and Hispanic homeownership in the U.S. hit an all-time high at 63.3% and 51.1%, respectively, according to NAR’s “2024 Snapshot of Race and Home Buying in America.”
And What Are Buyers Looking For? Think Green.
The 2024 Realtors® & Sustainability Report data demonstrated that more real estate professionals promoted green features because they were central selling points to consumers.
In top green home features, windows/doors/siding ranked first, followed by proximity to amenities, and having a comfortable living space came in third (and utility/operation costs behind).
How Can You Get Ready? As a Seasoned Tampa Real Estate Agent, Let Me Help You Every Step of the Way
The Tampa market remains consistently strong, and with this next surge of lowered mortgage rates, there will be a lot of opportunities for investors, current homeowners, and first-time buyers in the real estate world. Be a step ahead of everyone else! I know the Tampa area like the back of my hand, and I’d love to be a part of your upcoming buying or selling journey. Give me a call today, and let’s get you ready for what’s ahead in the real estate market!