Discover how a booming economy could skyrocket home prices and mortgage rates!

Inman Connect New York: Unveiling the Next Chapter
Are you ready to revolutionize your business model, embrace new technologies, and seize opportunities in the ever-evolving real estate market? Inman Connect New York is your gateway to innovation and success. The Next Chapter is set to unfold, and you have a front-row seat to witness it. Join us alongside thousands of real estate leaders from January 22-24, 2025, as we dive into the future of the industry.

1. Home Sales Projections on the Rise

• Fannie Mae’s economists initially forecasted a sluggish year for home sales in 2024, mirroring trends from 1995.
• However, recent dips in mortgage rates have prompted a slight uptick in sales projections for 2024 and 2025.
• Home sales are expected to grow by 10% in 2025, with existing homes leading the surge.

1. Home Price Appreciation and Market Dynamics

• While home prices are projected to continue appreciating, the pace is poised to slow down in 2025.
• Affordability remains a challenge for potential buyers, with little relief on the price front.
• The lock-in effect of low mortgage rates has constrained inventory in various markets, ultimately bolstering prices.

1. Mortgage Rate Forecast and Market Impact

• Forecasts suggest a drop in mortgage rates below 6% in the first quarter of 2025, with a further decline later in the year.
• However, rising rates pose a challenge to the housing market, potentially dampening sales activity.
• Homeowners are reluctant to list their properties amidst rate uncertainties, contributing to the inventory crunch.

1. Economic Outlook and Mortgage Originations

• Fannie Mae anticipates a slowdown in economic growth, leading to higher mortgage rates and subdued home sales.
• Mortgage originations are expected to surge by 28% in 2025, driven by projected growth in home sales and prices.
• Purchase loan originations are set to increase significantly, along with a spike in refinancings.

1. Building Boom and New Housing Starts

• The ongoing building boom is cooling down, but Fannie Mae predicts stable single-family housing starts in 2025.
• With a resilient labor market and limited existing inventory, the new home sales sector remains a promising aspect of the market.
• Projections for 2024 and 2025 indicate an upward trend in new home sales, signaling optimism for the industry’s growth.

As the real estate landscape undergoes transformations and challenges, staying informed and adaptive is key to navigating the dynamic market. The Inman Connect New York event is your gateway to insights, strategies, and connections that will empower you to thrive in the evolving real estate sphere. Embrace change, seize opportunities, and be a part of shaping the Next Chapter in real estate.