3 National Real Estate Trends That Will Define the Year
As we welcome 2025, the real estate market is set to evolve in ways that will affect buyers, sellers, and investors nationwide. Whether you’re planning to purchase your dream home, sell for top dollar, or expand your investment portfolio, understanding the landscape is essential.
Here are the Top 3 National Real Estate Trends to know as we enter the new year—and how they could shape your decisions.
01. A Balanced Market is Finally Emerging
After years of tight inventory and intense bidding wars, 2025 may be the year of balance. According to the National Association of Realtors (NAR), housing inventory increased by 12% in late 2024, and this upward trend is expected to continue. A more balanced market means fairer conditions for buyers and sellers, with less price volatility.
What does this mean for you?
Buyers can expect fewer bidding wars and slightly more negotiating power, while sellers need to focus on competitive pricing and standout marketing to attract buyers. Investors should monitor secondary markets where inventory growth offers new opportunities.
Source: National Association of Realtors Housing Forecast
02. Mortgage Rates: The New Normal is Here
After years of volatility, mortgage rates are stabilizing at levels higher than the record lows of the pandemic but lower than the peaks of 2023-2024. As of January 2025, the average 30-year fixed mortgage rate is hovering around 6.5% (Freddie Mac), and the Federal Reserve is signaling less aggressive monetary policy changes this year.
What does this mean for you?
Buyers should plan strategically, exploring options like rate buydowns or adjustable-rate mortgages for affordability. Sellers should be aware that higher rates may limit the buyer pool, and pricing appropriately will be key. Investors may find more predictable financing options, making long-term planning easier.
Source: Freddie Mac Mortgage Market Survey
03. The Rise of Build-to-Rent Communities
A nationwide trend is reshaping the rental market: build-to-rent (BTR) communities. According to the Urban Land Institute, build-to-rent developments grew by 20% year-over-year in 2024, and this momentum is expected to continue in 2025. These developments cater to renters seeking single-family homes with modern amenities, a trend driven by high homeownership costs and lifestyle flexibility.
What does this mean for you?
Investors should consider the build-to-rent sector as a growing opportunity for steady income. Buyers looking for entry-level homes may face competition from developers, and sellers in suburban areas may find strong demand from these growing rental communities.
Source: Urban Land Institute Build-to-Rent Report
Take Action in 2025!!
The real estate market is shifting, and this coming year is full of opportunities for those who stay informed and act strategically. Whether you’re buying, selling, or investing, these trends highlight the importance of partnering with a knowledgeable real estate expert.