Is 2024 shaping up to be the worst year for home sales in nearly three decades? Fannie Mae weighs in!

As we step into a new chapter, the upcoming year poses challenges and opportunities in the real estate market. Join us at Inman Connect New York on Jan. 22-24, 2025, as we explore ways to adapt, innovate, and succeed in an ever-evolving landscape.

• The current housing market is experiencing a slowdown, with existing home sales at their lowest in nearly three decades. Despite falling mortgage rates, the impact on sales is not expected until the following year, according to Fannie Mae economists.
• Listings nationwide have surged by over 20%, yet the steep rise in home prices presents affordability hurdles for buyers in various markets, as highlighted by Fannie Mae forecasters.
• While the Sun Belt and Mountain West regions have witnessed a significant increase in for-sale inventories, the supply shortage persists at a national level. Regional disparities in listing supply reinforce the local nature of the housing market, emphasizing the need for tailored strategies in each area.
• Fannie Mae anticipates a rebound in home sales in 2025, with projections indicating a 9.8% increase compared to the previous year. Factors such as easing mortgage rates and favorable income growth are expected to drive this growth, particularly in existing home sales.
• Regional perceptions about selling conditions vary, with consumers in different parts of the country holding contrasting views on the market. The increasing inventory in Sun Belt and Mountain West states stands in stark contrast to the tight supply in the Northeast and Midwest.
• Mortgage rates are forecasted to drop below 6% in the second quarter of 2025, making home ownership more accessible. However, the volatile nature of interest rates adds a layer of uncertainty to the market outlook, as highlighted by Fannie Mae economists.
• Despite cooling home price appreciation, mortgage lenders foresee a rise in purchase loans by dollar volume this year. The decline in mortgage rates is expected to boost refinancing, with significant growth projected for next year, signaling positive momentum in the market.

As we navigate through evolving market conditions, it’s crucial to stay informed, adapt to changing dynamics, and seize opportunities that arise. Let’s embark on this journey together, equipped with knowledge and strategies to navigate the real estate landscape of 2025.