Redfin’s 2025 Housing Market Predictions (Home Prices, Mortgage Rates, & More)

BiggerPockets Real Estate Podcast

BiggerPockets

Education, Investing, Business

4.8 • 16.6K Ratings

🗓️ 13 December 2024

⏱️ 35 minutes

🔗️ Recording | iTunes | RSS

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Summary

Redfin just released their highly-anticipated 2025 housing market forecast, and today, we’re reacting to each of their ten crucial housing market predictions. We’re touching on the exact numbers you want to hear about—home prices, mortgage rates, home sales, rent prices, and housing supply. Knowing what’s coming could give you an edge as an investor, agent, or first-time homebuyer. First, we’re reviewing Redfin’s home price predictions for 2025. Will things get any more affordable, or will high home prices persist into 2025? Will mortgage rates finally reach the low sixes, maybe even into the high fives? Dave disagrees with Redfin’s take on interest rates, so where does he think they’ll be headed? If you’re a real estate agent, broker, loan officer, or in the industry, listen up! Redfin has some good news you want to hear about home sales! Renters and landlords, take note—Redfin’s predictions suggest rents could become more affordable for everyday Americans. But that’s not all; we’ll also review their housing inventory, agent commission, and migration predictions for 2025! In This Episode We Cover: Redfin’s notable 2025 mortgage rate prediction that most homebuyers DON’T want to hear 2025 home price forecast and whether or not we’ll continue to see prices climb The “step in the right direction” for home sales coming in 2025 Why homebuilders are getting bullish thanks to the 2024 Republican sweep Why Gen Z may be the first generation to give up on homebuying And So Much More! Links from the Show Join BiggerPockets for FREE Let Us Know What You Thought of the Show! Ask Your Question on the BiggerPockets Forums BiggerPockets YouTube Redfin’s 2025 Predictions Invest in High-ROI Turnkey Rentals with Rent to Retirement Grab Dave’s New Book, “Start with Strategy” Find Investor-Friendly Lenders 2025 Housing Market Predictions (+ How’d We Do Last Time?) Connect with Dave Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/real-estate-1056 Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email advertise@biggerpockets.com. Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	It's prediction season.
0:07.0	As we wind down 2024, almost everyone is going on record about what they think will happen to the real estate market in 2025.
0:16.0	Redfin is one of the most reliable sources around for real estate industry news.
0:20.0	So today, I'm going to review their predictions that their economics team put together for 2025.
0:26.5	They've put together a total of 10 predictions, and I'll tell you, I definitely don't agree with all of them.
0:32.8	So make sure to stick around to see where we differ in opinion.
0:37.0	And if you want to see all of my
0:38.7	personal predictions for real estate in 2025, you can check out our YouTube channel, or maybe
0:44.6	you're watching there already. But if you're listening to this as a podcast, we recently released
0:49.4	videos about where I see mortgage rates, home prices, and rents trending in the next 12 months so you can go
0:55.7	check those out. All right. On to Redfin's prediction number one. First prediction from Redfin
1:02.7	about the housing market in 2025 reads, home prices will rise 4% in 2025. I'll just read you all a couple of lines that explains some of their logic here,
1:13.8	and then I'll give you my reaction to it.
1:15.8	Redfin writes, we expect the median U.S. home sale price to rise steadily throughout 2025,
1:21.1	ending the year 4% higher than it was in 2024.
1:24.9	Prices will rise at a pace similar to that of the second half of 2024 because
1:29.3	we don't expect there to be enough new inventory to meet demand. Rising prices are one
1:34.3	factor that will keep homeownership out of reach for many Americans, leading some would-be
1:38.4	homebuyers to rent instead. So Redfin thinks that prices will grow 4%. I think this is a pretty realistic prediction.
1:47.7	I've looked at probably, I don't know, 10, 12, maybe 15 different predictions. This is from big
1:53.0	companies that you've probably heard of like Redfin or Zillow or more specialty boutique shops,
1:57.8	lenders who all make these sorts of predictions. And the consensus seems to be that
	...

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