HOUSING MARKET FORECAST: UNPREDICTABLE MORTGAGE RATES MAY SHAKE UP 2025

via themortgagepoint.com—As 2025 draws near, mortgage rates are once again in the news. Those who want to buy, or even refinance, should prepare for a turbulent journey and be prepared to move when the time is right. Zillow anticipates a more active housing market with more buyers obtaining the upper hand in 2025.

“Buying a home in 2024 was surprisingly competitive given how high the affordability hurdle became,” said Skylar Olsen, Zillow Chief Economist. “More inventory should shake loose in 2025, giving buyers a bit more room to breathe.”

As the market gradually recovers, 2025 should bring more sales and relatively moderate increases in property values. Similar to this year’s growth, Zillow predicts a comparatively modest 2.6% increase in property values in 2025. Zillow predicts 4.3 million existing home sales in 2024, a little increase over 2023’s 4.1 million and 2024’s anticipated 4 million.

Although there are indications that mortgage rates may ease in 2025, as we witnessed in 2024, mortgage rates rarely move in the anticipated direction. There is no doubt that buyers will experience several highs and lows during the course of the year.

In September, mortgage rates dropped, momentarily raising the proportion of affordable properties to a 19-month high. Since then, they have increased to around 7%, which has altered the affordability situation for homebuyers. In 2025, further fluctuations of this kind are anticipated, with refinancing sprints taking place during the dips.

According to Zillow’s market heat index, 13 major metro regions are buyers markets right now, with the majority of them in the Southeast. This means that buyers have the upper hand in negotiations. In 2025, Zillow projects that buyer markets will expand to the Southwest as inventory continues to become stranded in reasonably priced cities.

With more properties available to buyers, sellers will be under pressure to compete. Working with an excellent realtor to assist price and marketing a house listing will be more crucial than in previous years. When compared to …READ MORE

The Current Miami Springs Market

TIME TO BUY OR SELL?
CALL US FOR AN EVALUATION

Inventory increased this week. There are now thirty-three (33) active listings this week. About 30% of the active listings are over a $1,000,000.00! Inventory in the MS/VG market hovered at around 32+/- listings last month. Prices remain strong for Sellers. Interest rates have decreased slightly and prices are still high but we are seeing a significant number of price decreases on active listings. We are truly in a unique market! It is slowing down but there are still many qualified buyers out there, despite high interest rates and high prices. Please refer to the articles posted on our website for more insight.

There are ten (10) active listings over one million dollars. Fourteen (14) of the active listings have had a price reduction; two (2) this week. There are no new pending sales this week. We have been transitioning to a more neutral market. However, the tight inventory and high demand for entry-level homes still makes it difficult for Buyers. The high interest rates also create a difficult situation for Sellers that have a mortgage with a low interest rate. Where do they go if they decide to sell? Sales activity has slowed down a bit. Properties are staying on the market for longer but some houses still quickly sell. Any additional interest rate increases in the future can mean fewer Buyers. Interest rates aside, we continue to anticipate more inventory increases.

DEMAND IS STILL THERE!

Mortgage interest rates are just under 7% with lower rates expected. There are still serious qualified Buyers looking for the right property. Timing is everything! Multiple offers still happen in some cases. The number of days properties are staying on the market is averaging 58 days. There are no properties listed under $500,000. The limited options for entry-level homes, higher interest rates, and homeowner insurance costs make it difficult for first-time Buyers. There are three (3) listings priced between $500,000-$600,000; nine (9) listings are priced between $600,000-$700,000; two (2) are priced between $700,000-$800,000; four (4) are priced between $800,000-$900,000; five (5) are priced between $900,000-$1,000,000; nine (9) between $1-2 million; and one (1) priced for over $2 million.

SELLERS, THIS IS THE MOMENT TO PRICE IT RIGHT!
Increasing Inventory + Increasing Interest Rates = Less Demand.

During the period of November 22, 2024 through November 29, 2024, there were reported 3 new listings, 0 closed sales, 0 pending sales, 1 active with contract, 0 expired listings, 0 cancelled listings, 0 temp off market, 2 price reductions, and 0 price increases.

HOW DOES YOUR HOUSE COMPARE?

The table below shows the current status of the Miami Springs/VG real estate market as of November 29, 2024. All closed sales are within the last 90 days.

*Disclaimer: The data relating to real estate displayed on this website and the chart above comes from the Miami Board of Realtors MLS. All listing information is deemed reliable but not guaranteed and can be independently verified.

 A complete list of all the properties for sale in Miami Springs or any other area of 

Miami-Dade County can be sent to you on regular basis. 

Request it at:  charlie@leonardrealestategroup.com

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