What does the housing market look like for 2025?
Based on the information provided, the housing market outlook for 2025 is generally expected to be challenging, with predictions of a slowdown in price growth and potential declines in some markets. Key points include:
- National home prices are expected to drop by 5% by Q4 2024, with steeper declines of 7-10% in major markets like Toronto and Vancouver.
- The affordability crisis is expected to worsen, driven by high mortgage rates and increasing mortgage resets.
- Adjustable-rate mortgages are on the rise again, as buyers struggle with affordability.
- The market is expected to remain stuck until at least 2026, with the lock-in effect keeping a lid on supply.
- Despite these challenges, some experts believe that the housing market is about to get better, with Redfin’s CEO predicting a stronger market in 2025.
- The outlook for 2024 suggests a 0.2% decrease in home values nationally, with a slowdown in price growth and a modest decline in prices.
Overall, the housing market outlook for 2025 is expected to be challenging, with potential declines in prices and continued affordability issues. However, there is some optimism that the market may begin to improve in 2025.