January 2025: "Best Money Moves for 2025", a Bottom Line included an outlook for real estate conditions from HSH.com vice president Keith Gumbinger.
"If you are a seller: You still are in the driver’s seat due to limited inventory and strong demand, especially in desirable locations. I expect the median US sales home price to rise 2% to 3% this year, after going up 3% to 4% in 2024. Sellers will need to factor in the current "lock-in" effect - does it make financial sense to sell your home, even with prices near record highs, if you have to exchange your sub-3% mortgage for a much higher one to purchase your next house?"
"If you are a buyer: Optimize your chances in what continues to be a challenging and competitive environment. The average home remains on the market only about 25 days. If you find your dream house, be ready to move on it quickly. Make sure your credit and finances are in good shape. Know what your maximum price is and what factors are deal breakers. I expect rates on 30-year fixed mortgages to come down, but the decline is unlikely to be smooth. Plan and budget for the low-to-mid-6% range."
Back to HSH.com in the News - 2024