Lately, there's been a lot of buzz about what's next for home prices, especially with 2024 shifting gears in some markets. In the DMV, we saw an increase in the number of listings and the median home price rose a little over 6% during the first six months of 2024.
But what about the future of the market? We don’t have a crystal ball, but experts have released early predictions for home prices in 2025 and here is what they are saying:
The Big Picture: National Home Price Predictions for 2025
It’s hard to believe 2024 is more than halfway over! Looking ahead to 2025, experts predict a slowdown in the national housing market's breakneck pace. Now, that doesn't mean prices are plummeting. In fact, the average forecast anticipates a +2.5% increase in national home prices for 2025. That would mark the 13th consecutive year of home price growth.
Home projections vary among major groups, with predictions running from a 0.3% increase to 4.4%
- Goldman Sachs: +4.4% growth in home prices in 2025
- Wells Fargo: +4.3%
- Mortgage Bankers Association: 3.3%
- Morgan Stanley: 3.0%
- Zelman & Associates: 2.3%
- Fannie Mae: 1.5%
- Freddie Mac: 0.5%
- Moody’s Analytics: 0.3%
It’s Not a One-Size-Fits-All Picture
While national trends provide a useful overview, real estate is inherently local. The DMV might not follow the national average. Local factors such as the labor market, inventory levels, and specific regional economic conditions will play a significant role in shaping the housing market here.
For instance, areas like ours with strong job growth and limited housing supply may continue to see higher price appreciation, while other regions may experience more modest gains or even slight declines.
Some of the key factors I watch every month include:
- Inventory Levels
- Interest Rates
- Average Days on the Market
- Median Sale Prices
- List-to-Sale Price Ratio
If you want to be updated on the local market data, sign up for our newsletter on our website.
Navigating the real estate market in the DMV in 2025 requires a blend of national insights and local expertise. By understanding the broader trends and keeping an eye on local market dynamics, we can help you make an informed decision whether you're buying or selling a home.
