With the calendar about to turn over to a new year, our real estate agents are looking ahead to the future of home buying in Chicagoland. What will the real estate market hold for us all in 2025?
We spend a lot of time studying real estate trends, and we can make some educated predictions about what buying a home will look like in 2025.
Mortgage Rates Will Decline... A Little
One of the big topics of discussion heading into 2025 is whether mortgage rates will hold steady or decline. Most experts agree that mortgage rates are likely to fall throughout 2025, but not by much.
Don't Expect a Major Change in Home Prices
Will home prices rise or fall in 2025? The evidence suggests that prices will increase, but not significantly. Most metrics suggest a year-over-year increase of roughly 2 to 4% over the next 12 months. That's comparable to what we saw in the previous year. For context, home prices rose by 3.9% between August 2023 And August 2024, according to data from CoreLogic. In short, expect more of the same.
Key Preparation to Buy in 2025
The steps you need to take before buying a home in 2025 are very much the same as they were in 2024. First and foremost, start saving for a downpayment. The market remains competitive, and the more you're able to pay upfront, the better your position will be.
It's also important to take some time to work on your credit report. If your credit score leaves room for improvement, put in the effort to boost it before you start house shopping. And as always, don't skip the important step of seeking preapproval for a loan.
House Hunting Strategies for 2025
Housing inventory isn't expected to increase dramatically. It will remain tight in 2025, which means buyers must use every tool in their arsenal to give themselves an advantage in what continues to be a seller's market. Use technology to give yourself an edge, setting up alerts for new viewings, listings and price changes. It's also wise to create a list of must-haves so you can filter out homes that don't meet your needs.
The Importance of a Real Estate Agent
Real estate agents bring invaluable expertise to the home-buying process. They have deep knowledge of local market conditions, including trends in pricing, inventory and neighborhood dynamics. Additionally, skilled agents act as impartial advocates, working on your behalf to negotiate favorable terms, streamline communication with sellers and lenders and reduce the stress and uncertainty that often accompany a home purchase. A real estate agent's experience, insight and professional network can help you reach a successful closing and secure a home that truly meets your needs. Looking for an agent to help with your search? Ask these questions.
Don't Wait to Buy
Buying a home is a personal choice, and ultimately, the right time to buy is whenever you're ready. Although spring and summer are often considered to be peak home sale months, don't feel like you need to wait.
In fact, there's a case to be made that winter is a great time to buy a home. Though inventory might be tighter this time of year, with fewer homes on the market, prices tend to be lower. You're also likely to face less competition from other buyers.
Contact us today to learn more about finding your dream home in the Chicagoland area in 2025. Our real estate agents have years of expertise when it comes to navigating the local real estate market, and we're dedicated to helping you find the right home at the right price.
