2025 Real Estate Outlook
As of December 2024, the real estate market is exhibiting varied trends across different regions, with projections for 2025 reflecting these nuances.
United States
Home Sales and Prices: The National Association of Realtors (NAR) anticipates a 9% increase in existing home sales for 2025, with a further 13% rise in 2026. Home prices are expected to see modest growth, with a 2% increase projected for both 2025 and 2026.
Mortgage Rates: Mortgage rates are predicted to stabilize around 6% in 2025, potentially enhancing affordability for buyers.
Texas
Inventory and Prices: The Texas housing market has experienced an increase in active listings, providing buyers with more options. However, home prices are expected to remain relatively flat or see modest declines in major metros. For instance, Zillow forecasts a 0.3% decrease in home prices for the Dallas-Fort Worth-Arlington area from July 2024 to July 2025.
International Markets
China: New home prices in China rose by 0.36% in November 2024, up from a 0.29% increase in October, indicating a slight acceleration in growth. This trend is influenced by government policies aimed at supporting the property market.
India: Home prices in India are projected to rise by 6.5% in 2025, driven primarily by demand from affluent buyers, despite affordability challenges for the broader population.
United Kingdom: House prices have increased by 1.5% over the past year, with the average price reaching £267,200. Zoopla forecasts a 2.5% increase in house prices for 2025, with stronger growth anticipated in the Midlands, Northern England, Scotland, and Wales compared to the south of England.
Australia
Sydney: Home prices in Sydney are expected to decline between 1% and 5% in 2025, attributed to affordability challenges and delays in anticipated interest rate cuts.
Global Outlook
Overall, the global real estate market in 2025 is expected to experience modest growth, with regional variations influenced by local economic conditions, government policies, and demographic trends. While some markets may see price increases driven by demand, others could face declines due to affordability issues and economic uncertainties.
