Redfin: 2025 Likely to See More Sales

(Image courtesy of Redfin)

Redfin, Seattle, released predictions from its economists for next year, anticipating there will be more sales due to pent-up demand, but some Americans hoping to buy will still be priced out.

Among those predictions: Redfin anticipates home sale prices will continue to rise, pegging prices at the end of next year at 4% over year-end 2024.

Also on the pricing front, rates are likely to remain near 7% next year, although a number of political and economic factors could affect that trajectory.

Despite those challenges, Redfin’s economists anticipate sales will edge up, ending 2025 at an annualized rate of 4.1-4.4 million. That would be a 2-9% increase over 2024.

Moving to multifamily, 2025 will still be a renter’s market. Redfin anticipates the median U.S. asking rent to remain flat year-over-year in 2025. And, there are still more new rentals coming on the market as a result of the pandemic-era construction boom.

The change in presidential administration may affect construction regulations, which could lead to more single-family and multifamily starts. However, other factors–such as interest rates–could also complicate building.

Climate change will continue to play a role, particularly in states such as Florida, California and Texas. Climate risk may be priced into individual homes in those areas, and people may move out of vulnerable stretches.

And, Gen Z may continue to be priced out and living with family or renting later than other generations. Redfin’s economists anticipate lower-priced homes will boom in 2025, but be largely snapped up by older buyers who can’t afford other homes.