National real estate market update
The U.S. real estate market is kicking off 2025 with some interesting trends. Nationwide, home prices are holding strong, with a slight year-over-year increase. Affordability is a key factor driving demand, with markets like Rockford, Illinois, standing out for their lower median home prices of $242,000 compared to the national average of $356,000. This affordability has fueled a 21% increase in local home prices.
Mortgage rates remain a hot topic. After some stabilization in 2024, rates have climbed again, recently hitting 7.09%—their highest since May 2024. This uptick has made it more challenging for buyers to enter the market, but those who can secure a loan may find less competition in some areas.
The rental market is a mixed bag. Nationwide, rents have dipped to a median of $1,695, their lowest in nearly three years. However, cities like New York are bucking the trend, with Manhattan’s median rent climbing to $4,387.
Looking ahead, the 2025 housing market is expected to vary widely by region. Low inventory and rising rates may create challenges, but opportunities still exist, especially in affordable markets. Staying informed about trends will be key for buyers, sellers, and investors this year.
Sources:
https://nypost.com/2025/01/15/real-estate/this-is-the-hottest-housing-market-in-the-us/
https://nypost.com/2025/01/16/business/mortgage-rates-top-7-soar-to-highest-level-since-may/
https://www.nerdwallet.com/article/mortgages/mortgage-outlook-january-2025
https://www.wsj.com/economy/economist-survey-inflation-2025-1fd00467
