New Year. Fresh Outlook. Looking Ahead into 2025.
What might we expect from the real estate marketplace in 2025 and beyond? National analysts anticipate slow yet steady growth in both existing home and new construction sales, with median home prices projected to inch upward by around 2%. Mortgage rates are expected to remain consistent in the 6–7% range—the days of 3% financing are long gone.
INTEREST RATE OUTLOOK
The Fed is expected to cut rates at some point this year, but mortgage rates may not fall.
Here in the Twin Cities, our team expects a slight uptick in new inventory as the year progresses. While our local sales and median pricing may vary slightly from national trends, steady interest rates could encourage more buyers to enter (or re-enter) the market. Adjusting to this “new normal” may take time, but we’re optimistic that it will bring renewed energy into the market.
This time of year often prompts reflection—and action. Many clients have reached out, ready to make fresh new changes. Whether you’re preparing to list your home or searching for a property that suits your lifestyle, our team is here to help you confidently navigate this market.
Feel free to contact us with any questions you may have. Although changes are inevitable, one thing that has not changed is our team’s commitment to providing exceptional service.
