A look at housing market trends from 2010 to 2024 and what to expect in 2025. The speaker examines inventory levels, interest rates, and inflation to forecast whether conditions will improve for buyers next year.
Early 2025 housing market outlook so if you've seen some of my earlier videos, I talked about how the 2010 decade had a big problem brewing with inventory. Post 2008 financial crisis, many people could buy houses for half price, so builders weren't in demand. They didn't build near as many homes for the next decade. But then the people came back around to purchase. The people didn't go away and they started finding homes. And builders were way short on inventory. And that rolled right into the all time low rates of 2020 and 2021. Just took two years of super low rates to gobble up pretty much all the remaining inventory. And many people predicted it would be about five years to the inventory shortage there. Well, 2022, 23 and now 24. That's three out of those five years. Inventory just from 23 to 24 jumped back up 34% and now it's expected in 2025 to go up another 17%. So slowly but surely more homes are becoming available. I've talked in recent videos about how more homes will moderate the increase in house prices, which will help lower inflation. That's the last shoe to drop before inflation is fixed. And lower inflation means lower interest rates. So look for 2025 to be more inventory lower rates a really good time for many to gear up for the new home.
