I’ve heard a lot of talk about interest rates going up in the housing market, and people seem slightly panicked. What’s going on? Let me break it down for you and explain what’s really happening in the real estate market and what we can expect in 2025.

Interest rates. Updates from housing experts tell us that our interest rates slightly increased, and we’re looking at rates around 7%. The good news is that we expect interest rates to hover between the low to mid-sixes, which is the sweet spot between 6% and 6.5%. 

Housing prices. We’re still going to see appreciation in homes, but it's just a bit slower than before. On average, we can expect about 3% appreciation this year.

What should buyers do? If you see that house that you love, get out there and get it. Even if your interest rate is slightly higher in the sevens, know that later on, you can refinance when it gets down into those sixes.

Inventory is needed, making it a great time to sell your house.

What should sellers do? For those wondering whether or not this is a good time to put that house on the market, spring is coming, and we will need more homes on the market. It's a great time to list your house. You’ll likely continue to see appreciation, which is great news for you. 

I hope this helped clarify what’s happening in the housing market right now. If you have any questions, feel free to call me at (703) 216-4272 or email me at trobinson@remaxdistinctive.com. I’m here to help.