Lately, there's been a lot of buzz about what's next for home prices, especially with 2024 shifting gears in some markets. 

Here in Livingston, NJ we saw the median sales price rise by 16% year to date (Jan - June 2024) over the same time period last year.

But what about the future of the market? Listen, no one has a crystal ball, but experts have released early predictions for home prices in 2025. Let’s dive in. 

The Big Picture: National Home Price Predictions for 2025

It’s hard to believe 2024 is halfway over! Looking ahead to 2025, experts predict a slowdown in the national housing market's breakneck pace. Now, that doesn't mean prices are plummeting. In fact, the average forecast anticipates a +2.5% increase in national home prices for 2025. That would mark the 13th consecutive year of home price growth. 

Home projections vary among major groups, with predictions running from a 0.3% increase to 4.4%.

• Goldman Sachs: +4.4% growth in home prices in 2025
• Wells Fargo: +4.3%
• Mortgage Bankers Association: 3.3%
• Morgan Stanley: 3.0%
• Zelman & Associates: 2.3%
• Fannie Mae: 1.5%
• Freddie Mac: 0.5%
• Moody’s Analytics: 0.3%

It’s Not a One-Size-Fits-All Picture

While national trends provide a useful overview, real estate is inherently local. Our local markets in Essex, Union, and Morris counties might not follow the national average. Local factors such as the labor market, inventory levels, and specific regional economic conditions will play a significant role in shaping the housing market here. 

For instance, areas with strong job growth and limited housing supply may continue to see higher price appreciation, while other regions may experience more modest gains or even slight declines.

Some of the key factors I watch every month include: 

• Inventory Levels
• Interest Rates
• Average Days on the Market
• Median Sale Prices
• List-to-Sale Price Ratio

Navigating the local real estate market in 2025 requires a blend of national insights and local expertise. By understanding the broader trends and keeping an eye on local market dynamics, you can make informed decisions whether you're buying or selling a home. Stay tuned for more updates and feel free to reach out with any questions or for personalized advice on your real estate journey.