09 January . 2025
2025 real estate predictions: Tips & hacks for homebuyers
Is 2025 a good time to buy a home? While nobody has a crystal ball, we’ve done the research and gathered a variety of professional housing market predictions, from local brokers to economists and real estate experts, to help you narrow down the answer. If you’re ready to buy a new home and want to know what to watch out for this year, keep reading.
Is Portland, Oregon a buyer’s market in 2025?
Local realtor Lily Ray Wyss of Living Room Realty says, “It’s a common conversation I’ve been having with homebuyers lately: Should we buy now when competition is low but rates are high, or should we wait until spring when there are more options, and rates could be lower? (Big emphasis on COULD.) Most experts are predicting that we won’t see much movement in interest rates in the new year, but whether rates decrease or not, we are likely to see a competitive sellers market return. There has been so much pent-up demand over the last few years, and folks waiting on the election results, so we should see things really pick up.”
Will mortgage rates go down in 2025?
Yahoo! Finance reports: “Mortgage rates are lower than this time last year [and] will probably decrease in 2025, but the changes might not be as significant as people once hoped. So, is it worth it to hold out for lower rates? The answer is different for everyone. ‘For people waiting for rates to come down, I often show the payment now versus a percent lower,’ Jennifer Beeston, senior vice president of mortgage lending at Rate, said via email. ‘They are often shocked by how little the difference is.’”
Will homes be more affordable in 2025?
CBS News says: “No, home prices are expected to keep climbing. Many prospective homebuyers will likely re-enter the market when interest rates cool again, and greater competition often drives home costs up. Predictions on real estate prices are speculative…so rather than trying to time the market, focus on your financial readiness. The best time to buy a home is as soon as you can afford it.”
Will the housing market crash in 2025?
Better Homes & Gardens shares: “Most experts agree that rather than crash, the market will continue to experience a correction that will benefit both buyers and sellers. ‘I do not foresee a crash,’ says Ann Cooper, a broker with Re/Max of Boulder for 27 years. ‘Instead, what I think will happen—and I’m already seeing it—is that home pricing will stabilize, and the rapid increases we’ve experienced in recent years will flatten out.’
Trend to watch: Small footprint living
According to Zillow’s annual report, “The pandemic-era need for more and more space is over. Homebuyers will increasingly lean into smaller homes as a more sustainable, affordable, and desirable way to live…reflecting current design trends that have shifted away from cavernous floor plans toward contained spaces that have their own style and purpose.”
Trend to watch: Pet-centric real estate
Zillow also says that pet friendliness will become non-negotiable in the new year. “With 58 percent of renters having a pet, nearly half said they passed on a particular property because it was not pet-friendly.” Homes that come with pet-centric features, like cleaning stations and nearby dog parks, are expected to see a boost.
Trend to watch: Integrated outdoor living
From Maison Vogue to Houzz, design experts agree that integrated indoor/outdoor spaces will be huge in 2025. This architectural trend seamlessly blends indoor and outdoor living areas to enhance your space, making it feel larger and more in harmony with nature. At Reed’s Crossing, we take that one step further; we like to say that the whole community is an extension of your yard, with myriad shared spaces like parks, covered pavilions, playgrounds, firepits, and more sprinkled throughout the neighborhood.
Thinking about buying a new home in Oregon? Take a virtual tour, come by for a visit, or sneak a peek at what’s in store for the future.