Overview

• Home prices are expected to rise by 2-4% in 2025, marking a return to slower, pre-pandemic growth rates.
• Mortgage rates are projected to stabilize around 6%, reducing the 'lock-in effect' for homeowners with low-rate mortgages.
• An increase in housing inventory is anticipated due to new construction and more homeowners listing their properties, easing competition for buyers.
• Rent growth is forecasted to remain flat as new apartment construction strengthens renters' negotiating positions.
• Climate risks, inflation, and potential tariff policies under the incoming Trump administration could influence market dynamics and borrowing costs.