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Are you thinking about entering the real estate market in 2025? In today’s post, Allen Tate’s top minds come together to predict what will happen in 2025. While no one has a crystal ball and we’re not economists, our predictions are pretty much in line with those of other national real estate publications, So we are confident that this article will offer an educated estimate of what to expect in the 2025 real estate market. Interest rates All signs pointed to lower interest rates heading into 2024. However, things didn’t go exactly as we expected and interest rates remained quite stubborn for much of the year. The top minds at Allen Tate echo the predictions of most economists and anticipate that rates will be around six at the beginning of the year and end the year a little lower, around 6.25%. Given the continued rates of home appreciation in the Carolinas, it makes no financial sense to continue waiting for “the right time to buy,” and we predict that more potential buyers will come off the bench and into the housing market in 2025. . Let’s see exactly what our team of experts predicts for 2025 regarding mortgage interest rates: Mark McGoldrick, Executive Vice President of Howard Hanna Mortgage predicts mortgage rates will be between 6.25-6.5% Neal Hank, President, Allen Tate/Beverly-Hanks predicts mortgage rates will be around 6.5% Phyllis Brookshire, Senior Vice President of Operations, Allen Tate Realtors predicts mortgage rates will be in the 6% range Eric Heintschel, Chief Financial Officer, Allen Tate Company, predicts that we will see interest rates between 6 and 6.5% in the first half of the year and between 5.75% and 6.25% in the last half of 2025. Gary Scott, President, Allen Tate Companies predicts mortgage interest rates will be in the low 6% range Inventory Experts predict we’ll see the highest for-sale inventory since December 2019, a welcome relief, especially for first-time buyers. If you buy in 2025, you can expect to experience a slower-paced and much less competitive market than we have experienced in a long time. Here’s what our experts shared on the topic of inventory: Mark McGoldrick: Inventory will increase. We’ll see it rise early in the year as interest rates drop, and later in the year, we’d expect inventory to rise even further as interest rates continue the downward trend. Neal Hank: Days on market have increased as well as months of supply of inventory (MSI)* this year and I think we will continue to see that in 2025. Baby boomers will downsize and buyers who have been on the sidelines for a couple of years finally enter the market. I expect the MSI at the national level to be above 4 and at the local level above 3. Phyllis Brookshire: MSI increases from 2 to 3 bass. In 2025, we will see an increase in DOM and MSI will follow that pace. Sellers who have been on the sidelines for the last few years will likely price their home as it should have been 2 years ago (when inventory was much tighter) and, as a result, their homes will stay on the market longer. . Eric Heintschel: Inventory will increase, but will peak in the spring; Locally in the Carolinas we will see an MSI of 3.3 and nationally we will see 4. *Anything below five months supply (MSI) is a seller’s market, anything between five and seven months is a balanced market, and anything over seven months becomes a buyer’s market. Price appreciation Nationally, price appreciation is expected to grow at a slower rate than in previous years. This will largely be due to the expected increase in inventory, thanks to falling mortgage rates. However, home appreciation rates remain hyperlocal, and in the Carolinas, we are likely to experience a higher appreciation rate as our area remains a very desirable place to live. Here’s what our experts predict in terms of house price appreciation by 2025: Phyllis Brookshire: Nationally, we will see an appreciation of 5-6%. Locally, the range could be 3-10% depending on where in the Carolinas you are. Neal Hank: Nationally 3%, Carolinas 5-5.5% Gary Scott: Stable nationally, Carolinas 6-8% Eric Heintschel: Nationally 3%, Carolinas 5-5.5% Mark McGoldrick: Nationally 2-3%, Carolinas 5-6% Inflation Inflation continues to trend downward, but there are some questions about where it could go in 2025, particularly in the second half of the year, as new economic policies are implemented as a result of the new administration. Here’s what our experts predict regarding inflation in the new year: Neal Hank: Inflation is falling and is expected to end the year in the range of 2.2-2.5%. Mark McGoldrick: Real estate, rentals, and insurance are where we saw most of the inflation increases in 2024. In 2025, those items should be pretty much under control. I don’t know if we will reach 2% without other developments in the workplace. I think we will see between 2.25 and 2.4%. Eric Heintschel: Inflation measures a reflection of policies and things that have happened in the previous 6 to 9 months. We will continue to see inflation trend downwards closer to the target. Due to possible tariffs and immigration policy, I think it will trend lower in the first half of 2025, but I am cautious about how it could rise again in the second half of the year. Phyllis Brookshire: We’ll see low 2s all the way up to 4 due to the factors Eric mentioned. _____________________________________ Visited 6 times, 6 visit(s) today

The average homeowner has a large capital quote Your house could be a hidden gold mine. Home prices have increased significantly and homeowners who have been in their homes for years are seeing record levels of equity. That capital could help you finance your dream move, finance improvements, or even start a new business. Ready to see the value you've created and how you can use it to achieve your goals? come on connect. Don't forget to check out our latest market reports! I'm Joe Peters, a real estate agent with over twenty years of experience at Coldwell Banker Residential Brokerage. I work with people who want to buy or sell a home (or both) in Hunterdon or Somerset County, New Jersey. Clients rely on me for detailed market and neighborhood information and smooth real estate transactions. My access to big data through Coldwell Banker, plus current technology and marketing skills, gives clients a unique advantage.

Rental investments in the Upper Country Common real estate investment terms: Investing in rental properties in North Carolina's High Country, encompassing Boone, Blowing Rock, and Banner Elk, offers a lucrative opportunity to capitalize on the region's natural beauty and vibrant community. Whether you are considering short-term vacation rentals or long-term student accommodation, it is essential to understand key real estate investment concepts. Key real estate investment terms: Short Term Rental (STR): A furnished property that is rented for short periods, ranging from a single night to a couple of months. Long Term Rental (LTR): Properties leased to tenants for extended periods, typically six months or more. Equity: The difference between a property's current market value and the remaining balance on its mortgage. Equity builds up over time as the mortgage is paid off and the value of the property appreciates. Cash flow: The net income an investor retains each month after covering all operating expenses, including loan payments, taxes, insurance, and maintenance. Positive cash flow indicates profitability. Return on Investment (ROI): A percentage that represents the annual profit or loss in relation to the total investment. Calculated as ROI = Net Profit / Total Investment. Net Operating Income (NOI): Annual income generated by a property after deducting operating expenses such as property taxes, management fees, and utilities. Capitalization rate (cap rate): The relationship between the NOI and the current market value of the property, which indicates the expected rate of return. Condos for children: Properties in university towns purchased for student occupancy. These investments can provide rental income and help students establish residency for in-state tuition benefits. Homeowners Association (POA): An organization that governs a community or development, similar to a Homeowners Association (HOA), often found in areas with vacant lots. R1 Zoning: Residential zoning designation that typically restricts properties to single-family use, prohibits short-term rentals, and limits occupancy to no more than two unrelated persons. Long term rentals: The High Country's proximity to Appalachian State University in Boone presents excellent opportunities for long-term rentals, particularly student housing. Properties close to the university or along AppalCart routes are in high demand, ensuring consistent occupancy. In addition, professionals moving to the area often look for long-term rentals before settling permanently, which maintains a constant demand for these types of properties. Short term rentals: The appeal of the High Country as a vacation destination makes short-term rentals a profitable venture. Visitors are drawn to the region's mountain views, outdoor activities such as hiking, skiing and fishing, and cultural attractions including local breweries, wineries and Appalachian state sporting events. Investing in a short-term rental allows you to generate income while enjoying a personal retreat in this picturesque area. Attractive features for vacation renters: To enhance the appeal of your vacation rental, consider incorporating amenities such as: Panoramic views: Properties with mountain views or sea access are highly sought after. Proximity to attractions: Locations near popular outdoor activities, cultural sites, or the university attract more guests. Modern services: Features like hot tubs, fireplaces, and updated kitchens can enhance the guest experience. Pet-friendly options: Allowing pets can expand your potential guest base. Investing in the High Country rental market offers financial rewards and personal enjoyment. Whether you opt for a short-term or long-term rental strategy, the region's dynamic market and natural appeal make it a compelling option for property investment. For personalized assistance in finding the ideal rental property, consider contacting local real estate experts who can guide you through the process.