The housing market should pick up next year, but the path looks choppy

Published On Dec 7, 2024, 8:30 AM

The article discusses the housing market's slow recovery after a challenging year in 2024, predicting some improvement in 2025. Despite persistent high mortgage rates (6-7%), an increase in available homes may lead to more transactions. However, affordability remains a significant issue, with home prices up about 30% since before the pandemic, limiting buyer activity. Economists anticipate a rise in existing home sales by 1.5% to around 4.07 million, though this still falls short of pre-pandemic averages. Regional disparities are expected, with high-cost cities experiencing more significant price gains, while certain areas may see flat or declining prices due to economic pressures. Overall, the recovery path is viewed as uneven and may be influenced by political and economic uncertainties.