Choosing the right time to sell your home is a complicated decision. While your personal needs and financial goals are major factors, the current state of the market can heavily influence your potential ROI. Therefore, partnering with your real estate agent to understand market dynamics is an important first step toward a successful home sale.
With high home mortgage rates, low inventory, and a significant amount of market volatility, many homeowners are wondering if it’s the right time to sell. Is there a pending housing crisis coming our way? What will the market look like later this year? While there are many unknowns and predicting the market is impossible at times, having an experienced real estate agent in your corner can make a huge difference.
At Bee Realty Corp, our job is to help you navigate the market to reach your real estate goals. If selling a home is your objective in 2025, we’ll try to break down the current dynamics and review how we can help you along your journey.
What Is The Current State Of The Housing Market?
High mortgage rates and low inventory have inhibited real estate transactions for the last couple of years. These competing forces have frozen the market, as many buyers are facing affordability challenges and sellers are reluctant to sacrifice their pandemic-era interest rates. Most industry experts are waiting for one of these things to give, and once it does, many expect a significant amount of pent up buyer demand to be released. However, timing remains uncertain.
Mortgage rates are influenced by the Treasury Yield, the Federal Funds Rate, and the overall economy. As we continue to battle inflation, and the near-term impact of tariffs on prices remains unknown, it’s unclear to what extent the Fed will cut interest rates in 2025. We may continue to see elevated rates for the next quarter or two, depending on how things play out.
Current inventory levels are also likely to stick around in the short term. Fewer sellers are listing their homes, and so many hot markets are relying on new home construction to drive up listings. However, these residential construction pipelines can take time to fulfill.
As a result, we’re seeing slower market activity, and this trend may persist for several months.
Should You Brace For A Housing Crisis In 2025?
Most experts agree that a real estate crash is highly unlikely to happen in 2025. The demand for homes still significantly exceeds current inventory, which means home prices are unlikely to fall. In fact, some experts believe home prices will continue to increase by 1.3 to 3.5% this year.
However, a significant amount of uncertainty and volatility is shaking the markets this spring, and it’s important to keep this in mind if you’re planning on selling a home. A significant amount of building materials are imported from other countries, so some worry that tariffs could lead to higher construction costs and even higher home prices, which could further worsen affordability challenges, especially for first-time buyers.
The general health of the overall economy also plays a role. Should we enter a recession and experience a significant uptick in unemployment rates, buyer demand could quickly dissipate, which could cause home prices to fall.
Still, the chances of a major downturn in the housing market remain unlikely in 2025.
Bee Realty Corp Can Help You Navigate Any Market Challenges
Our housing needs evolve throughout life, and sometimes we can’t afford to wait for the perfect time to buy or sell a home. While market conditions are an important consideration, they’re not the only thing to consider. Buying or selling a home in this market is totally achievable, and your chances of success increase exponentially when you partner with a good REALTOR®. Whether you’re looking to maximize your sale price or find a way to land the home of your dreams, finding the right professional can make all the difference.
Bee Realty Corp’s expert REALTORS® are highly skilled when it comes to managing complex real estate transactions. We can consult with sellers on many different strategies for generating a strong return on a home sale. We can also help buyers come up with creative ways to draft a compelling offer despite high home prices and mortgage rates. Bee Realty Corp is one of the top firms in Volusia County. We know the Central Florida real estate market so well, and we’re prepared to help you succeed. Give us a call to discuss how we can help you achieve your real estate goals today.
