Warm wishes for a prosperous 2025, from your team at Leonard Real Estate Group!

REALTOR.COM 2025 HOUSING FORECAST

via realtor.com—Mortgage rates are expected to keep mortgage payments essentially unchanged in 2025 despite continued home price growth. With Donald Trump’s victory in the 2024 election, the U.S. housing market could see significant shifts, from regulatory changes to tax policies, and potentially even a recalibration of housing supply and demand dynamics especially since President-elect Trump is a developer himself.

Under Trump’s previous administration, we saw tax cuts, deregulation, and a push for economic growth through business-friendly policies. Many of these initiatives could return in a Trump-led 2025, potentially affecting everything from mortgage rates to new construction projects and homeownership affordability. However, the market's overall trajectory will also depend on broader economic factors, including interest rates, inflation, and shifts in demographic trends.

In this forecast, we’ll explore what homebuyers and sellers can expect from the housing market in 2025, considering key factors like government policy, market conditions, and the ongoing challenges of housing affordability and supply. Whether you’re looking to buy, sell, or simply stay informed, understanding the potential impact of a Trump administration on the housing market will be crucial as we enter a new phase in the American economy and political atmosphere.

Home Prices Trend

This past year brought us a surprising upward trend in home price growth despite the persistence of high mortgage rates and rising inventory. Our full-year expectation for 2024 home price growth is 4%, up significantly from the 1.1% rate of 2023. What’s more, we expect home prices to continue to rise in 2025, although at a slightly lower pace of 3.7%. Why? While we’re forecasting mortgage rates to be slightly lower than they were in 2024, with an average monthly rate of 6.3% and year-end rate of 6.2%, we’re also expecting existing for-sale inventory to be 11.7% higher in 2025 than in 2024 (as detailed below). We think the …READ MORE

The Current Miami Springs Market

DEMAND IS STILL THERE DESPITE HIGHER INTEREST RATES

There are now twenty-four (24) active listings in the Miami Springs/Virginia Gardens market, a slight decrease from last week. We are seeing a number of price decreases on active listings, which is good for buyers, but sold prices remain strong for sellers. There are still serious qualified buyers looking for the right property and multiple offers still happen in some cases. Timing is everything!

We had been transitioning to a more neutral market. However, the tight inventory and high demand for entry-level homes makes it difficult for some buyers. 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!

Mortgage interest rates are just under 7%. Rates are expected to fluctuate between 6-7% in 2025. Despite high interest rates, there is still demand! The number of days properties are staying on the market is averaging 54 days. There are three (3) new pending sales this week. The limited options for entry level homes, high interest rates and homeowner insurance costs make it difficult for many first-time buyers. There are no properties listed under $500,000. There is one (1) listing 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; six (6) are priced between $800,000-$900,000; three (3) are priced between $900,000-$1,000,000; six (6) between $1-2 million; and one (1) priced for over $2 million.

TIME TO BUY OR SELL?
CALL US FOR AN EVALUATION

During the period of December 27, 2024 through January 3, 2025, there were reported 0 new listings, 0 closed sales, 3 pending sales, 2 active with contract, 1 expired listing, 1 cancelled listing, 1 temp off market, 1 price reduction, 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 January 3, 2025. 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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