Mauricio Umansky predicts real estate market will see unprecedented movement in 2025
- The US housing market is concluding 2024 with high prices and sluggish sales due to elevated mortgage rates.
- Increased job growth and more homeowners selling their properties are crucial for boosting housing inventory.
- Predictions for 2025 suggest a resurgence in listings and a rise in transaction volumes in the real estate market.
In the United States, the housing market has been experiencing challenges such as high prices, sluggish sales, and elevated mortgage rates throughout 2024. As of November 2024, mortgage rates remained above 6%, while job growth and housing inventory are identified as key factors that may revitalize the market. The National Association of Realtors (NAR) reported that home prices have increased for 17 consecutive months, with the median existing home price reaching $406,100. A significant shortage of homes, estimated at 3.7 million units, has also persisted. However, there are indications that this may change in 2025, with more homeowners expected to sell, influenced by personal circumstances like new children or changes in relationships that could lead to an increase in housing supply in the market.The job market is crucial for the overall economy as a steady income allows consumers to spend. Yet, high employment can also contribute to rising home prices. Economist Lawrence Yun from NAR emphasizes that job growth and more homes for sale will drive home sales. As inventory levels are expected to rise, more prospective buyers can find suitable homes. On the construction side, regions with support for residential development may see a boost in housing supply as more homes become available. According to Mauricio Umansky, the founder and CEO of The Agency, many uncertainties remain, including the timing and magnitude of interest rate changes. However, he foresees an increase in transaction volume and lower mortgage rates, contributing to increased confidence in the market. The easing of the election cycle is also poised to facilitate more movement in the real estate sector. While there are signals that luxury market prices may drop, the gap between asking and final sale prices is narrowing as sellers adjust to current market conditions. Homeowners are encouraged to reassess their pricing strategy to avoid lingering on the market longer than necessary, as they may face a buyer's market in 2025.