FANNIE MAE RELEASES 2025 ECONOMIC OUTLOOK

via themortgagepoint.com—As the new year draws near, Fannie Mae anticipates that many of the housing trends from 2024 will persist in 2025, with the “lock-in effect” of mortgage rates and housing affordability continuing to be major obstacles for countless Americans. We provide five forecasts for the housing market in 2025 below, along with our housing and economic outlook.

According to the report, the economy looks to be well-positioned to close out 2024: Although the labor market is gradually cooling, consumer spending has remained strong, unemployment is still low, and job creation is now occurring at a solid rate according to demographic trends. The GSE predicts no significant drop in the 10-year Treasury rate in 2025, which will keep mortgage rates high and home sales “muted”, especially if inflation measures are still stickier than markets anticipated earlier in 2024.

Key Findings from the Fannie Mae Forecast:

There will probably be periods of volatility, but average mortgage rates will decrease slightly while staying above 6%.

In 2025, economists predict that the average mortgage rate will continue to be higher than 6%. Sticky inflation and a seemingly stable labor environment have dampened the environmental expectations for further interest rate decreases. The GSE anticipates that mortgage rates will stay high compared to pre-pandemic levels and only marginally decline to about 6% by the end of …READ MORE

The Current Miami Springs Market

TIME TO BUY OR SELL?
CALL US FOR AN EVALUATION

There are twenty-seven (27) active listings this week. Approximately 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 but we still have high prices? We are seeing a significant number of price decreases on active listings, but sold prices remain fairly strong. We are truly in a unique market! Sales slowed down this year, volume-wise, but prices remained strong. Please refer to the articles posted on our website for more insight.

There are eight (8) active listings over one million dollars. Thirteen (13) of the active listings (almost half!) have had a price reduction; none this week. There is one (1) new pending sale 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. We'll see in 2025!

DEMAND IS STILL THERE!

Mortgage interest rates are just under 7%. Rates are expected to fluctuate between 6-7% in 2025. 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 52 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 two (2) listings priced between $500,000-$600,000; six (6) listings are priced between $600,000-$700,000; one (1) is priced between $700,000-$800,000; five (5) are priced between $800,000-$900,000; five (5) are priced between $900,000-$1,000,000; seven (7) 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 December 20, 2024 through December 27, 2024, there were reported 1 new listing, 2 closed sales, 1 pending sale, 0 active with contract, 0 expired listings, 1 cancelled listing, 0 temp off market, 0 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 December 27, 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:  [email protected]

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