Home prices are expected to rise in 2025, with mortgage rates set to remain above 6%. Yahoo Finance Senior Housing Market Reporter Claire Boston joins Brad Smith on Wealth! to break down what homebuyers should expect in the new year with consideration to rising prices, high mortgage rates, and inventory dynamics. She explains that mortgage rate buydowns, an incentive from new home builders, could help homebuyers secure a sub-5 % rate. To watch more expert insights and analysis on the latest market action, check out more Wealth here. #youtube#news#stocks
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Dreaming of buying a home in 2025?
Realtor.com and Redfin estimate that home prices
will rise more than 3.5% in 2025,
with rates remaining above 6%.
Here with more on the 2025 housing outlook
is Yahoo Finance's own Claire Boston.
Hey Claire, so what can potential home buyers expect here?
Yeah, Brad, you look at those numbers,
we're gonna see rising rates
and then also still a relatively high mortgage rate there.
And so we will have to see what that means probably.
It's gonna be a little bit easier
to buy a home next year though.
And the reason for that is inventory.
A lot of people I talk to are expecting inventory
to improve next year.
Some of that is gonna be that as we stay
in this higher rate environment,
buyers are gonna get used to that
and they're gonna decide, okay, it's my time.
I'm just gonna start looking for homes
or sellers will also come in and say,
I'm gonna sell my home.
And that might make it a little bit easier
for some entry-level first-time home buyers
to get into the market here.
Claire, there's a strategy that you're tracking as well
that could impact affordability.
Tell us about this.
Yeah, so I have been looking a lot
at the new housing market.
And so this is an area where we are seeing
a little bit more inventory than that existing home space.
And so one thing that builders are having to do
to move some of these homes is offer buy-downs,
mortgage rate buy-downs specifically.
So the prevailing rate right now is close to 7%,
but builders will often offer incentives,
letting people get mortgages for more like 5%.
So that can be a really key way
to help affordability in this market right now.
Claire, thanks so much.
Appreciate it.
Lots of track within the housing market
going into next year.
