As we bid farewell to the rollercoaster ride that was 2024, we welcome the championship game that is shaping up to be 2025—a year where every buyer, seller, and homeowner has the chance to come out on top.
After a year filled with rate fluctuations, market unpredictability, and a touch of drama (thank you, inflation), the real estate world is ready for a fresh start. Whether you are looking to purchase your first home, upgrade, or simply gain clarity on the current market, this guide serves as your insider’s playbook to tackle 2025 with confidence.
Reflecting on 2024
Let’s be honest, 2024 kept us on our toes. Interest rates were as unpredictable as the weather in Vegas—dropping to 5.75% in September only to spike back up near 7.125%. Despite this, the Las Vegas housing market remained resilient with steady appreciation, climbing 5-7%.
The main takeaway? Real estate is durable, and the market once again showed that patience and strategy pay off.
Setting the Stage for 2025
The outlook for 2025 is one of stabilization. While no one can accurately predict mortgage rates due to various factors at play, industry forecasts suggest interest rates will range between 5.5% and 6%, with potential dips below 6% by mid-year. If this occurs, we can expect a surge in activity as buyers who have been waiting on the sidelines finally make their move.
Spring will bring its usual momentum—warmer weather, increased foot traffic, and heightened market activity. By March, we anticipate a healthy uptick in sales. If you are considering buying or selling, now is the time to start preparing.
First-time buyers: Seize the Opportunity
First-time homebuyers, pay attention. 2025 could be your year.
Here’s your game plan:
- Check your credit: A score of 640 opens doors to FHA loans and down payment assistance programs. Aim for 680 to access better DPA rates and terms. Ultimately, strive for a mid-credit score of 760 for improved rates and terms in the long run.
- Save strategically: Even with down payment assistance, you’ll need savings for earnest money and closing costs. While sellers are currently offering incentives, these may decrease as the market heats up in the spring.
- Get prepared early: Consult with a mortgage professional now to position yourself for success when the perfect home becomes available.
Pro tip: The current market favors buyers, with many sellers covering 2-3% of closing costs. This trend may not last once the market picks up, so the best time to buy is now.
Navigating Interest Rates
Let’s address the elephant in the room—interest rates. Yes, they are higher than the historic lows seen during COVID, but those were a rare anomaly. The long-term average rate over the past 25 years has been around 7.5%.
Why does this matter? Current rates, though higher than recent years, are still below average. Buying now means building equity while others wait, and you have the opportunity to refinance if rates drop in the future.
The Return to a “Normal” Market
The buzzword for 2025 is “normal.” After years of market fluctuations, this year promises a balanced, healthy real estate environment. Inventory levels are expected to gradually increase, especially if rates fall below 6%, prompting homeowners with low-rate mortgages to feel comfortable selling and upgrading.
For both buyers and sellers, this translates to more opportunities, fewer bidding wars, and a market that feels predictably stable.
The Bottom Line
2025 is not just another year—it’s an opportunity to reset, refocus, and thrive. With rates stabilizing, motivated sellers, and a projected steady appreciation, the time is ripe to make your move. Whether you are purchasing your first home, upgrading to your dream property, or securing a solid refinance, the tools are at your disposal to win big this year.
So, what’s your game plan?
Tim Deibert, President of note. A Mortgage Agency.
This column represents the opinion of the author and does not necessarily reflect the views of HousingWire’s editorial department and its owners.
To contact the editor responsible for this piece: [email protected].
Related