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What’s Your Real Home Value in the 2025 Market?
If you've checked home prices in the past few years, you know too well that they're always rising. ...
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General Community News • Real Estate Trends •
March 12, 2025
Mortgage Rates Drop to the Lowest Point in 2025 So Far
If you’ve been holding off on buying a home for a lower mortgage rate, take another look at the market. Mortgage rates are trending downward, and they just hit their lowest point of the year so far.
According to a report from Freddie Mac, mortgage rates have been falling for seven straight weeks. The average weekly rate for a 30-year-fixed mortgage is now at the lowest level its been in 2025.
This may not sound significant on its own, but it outlines a remarkable trend. A drop in rates from over 7% to the mid-6’s can make all the difference when buying a home. What’s most significant is that experts previously predicted that rates wouldn’t fall this low until Q3 of this year.
Why Are Mortgage Rates Dropping?
According to Joel Kan, VP and Deputy Chief Economist at the Mortgage Bankers Association (MBA), ongoing economic uncertainty is a driving force in pushing rates lower:
“Mortgage rates declined last week on souring consumer sentiment regarding the economy and increasing uncertainty over the impact of new tariffs levied on imported goods into the U.S. Those factors resulted in the largest weekly decline in the 30-year fixed rate since November 2024.”
The timing of this rate drop is great for buyers moving into the Spring 2025 market. But remember that mortgage rates can change quickly, and always expect some volatility in markets driven by uncertainty. With that said, this small window of rates dropping into prime buying season might be exactly wait you’ve waited for.
What Falling Mortgage Rates Mean for Your Buying Power
Even a small reduction in your mortgage rate can make a huge difference in your monthly housing payment. The chart below shows what a monthly payment (principal and interest) would look like on a $400K home loan if you purchased a house when rates were 7.04% back in mid-January (this year’s mortgage rate high). The right side shows what it could look like if you buy a home now at current rates.
In just the past few weeks, the expected payment on a $400K loan has come down by over $100 per month. That’s a significant savings that can make a world of difference when deciding to buy a house.
Recent economic shifts have driven rates down faster than expected, and that’s great news. But remember that this could change at any time in the coming days and months for better or worse. So if you’re waiting for rates to fall further before you buy, think hard about the current window of opportunity before making a decision.
Conclusion
Mortgage rates have dipped to their lowest point in 2025 so far. This grants buyers a great position moving into the spring buying season, especially for those who have been waiting. The unpredictability of the market and larger economy mean volatility, so get expert advice and consider before making a decision.
General Community News • Real Estate Trends •
March 4, 2025
Can You Buy a Home in 2025 Without Waiting for Lower Rates?
Like many homebuyers, you may be waiting for rates to drop before you finally buy a home this year. The latest expert reports predict that rates will continue to fall, but not as low as many hope. While this may be discouraging, the good news is that there are still ways you can buy a home in 2025 without waiting for lower rates.
Will Rates Keep Dropping?
Near the end of 2024, experts were predicting that mortgage rates could dip below 6% by the end of 2025. More recent projections are suggesting that rates will continue to fall but hover somewhere above 6%.
Recent projections from Fannie Mae, the Mortgage Bankers Association (MBA), and Wells Fargo now predict that mortgage rates will stabilize around 6.5% by the end of the year.
If you’re holding out for mortgage rates to drop below 6% before buying, you may need to keep waiting into next year at least. But what if you’re a buyer who can’t wait to move because of a major life event, like a new job, a new baby, or a marriage? Don’t panic—you’ll still be able to move this year, but you may need to take advantage of some alternative financing options.
How to Finance a Home in Today’s Market
With rates predicted to hold more stubbornly than expected this year, it’s worth researching different financing options, especially if your move is a non-negotiable one. Here are three unique financing strategies that may be helpful to you depending on your situation. If you’ve already chosen a lender, discuss each of these options with them to decide if any are a good fit. It may make all the difference you need to buy a house in 2025.
1. Mortgage Buydowns
A mortgage buydown allows you to pay an upfront fee—sometimes called “discount points”— to lower your mortgage rate temporarily or sometimes permanently. This can be an especially helpful option if you want or need a lower monthly mortgage payment early on. Of course, the obvious downside is a higher upfront cost.
A recent survey by HomeLight found that 27% of real estate agents day first-time homebuyers are increasingly requesting mortgage buydowns from sellers. This is a new program called RateReduce Sell that allows sellers to pay an upfront cost to lock in a lower mortgage rate for buyers. However, a real estate agent can help negotiate this with a seller, so be sure to mention it if you’re actively looking to buy a house.
2. Adjustable-Rate Mortgages
Adjustable-rate mortgages (ARMs) are loans that combine a fixed-rate period with an adjustable-rate period. ARMs typically start with a lower rate than a traditional 30-year fixed mortgage then fluctuate with the market once the fixed-rate period ends. This can make them an attractive option if you expect rates to drop in the future, or plan to refinance your home later.
If you remember the 2008 housing crash, it may be reassuring to know that today’s ARMs aren’t like the volatile loans from back then. Lance Lambert, Co-Founder of ResiClub, describes modern ARMs this way:
“. . . ARM products today are different from many of the products issued in the mid-2000s. Before 2008, lenders often approved ARMs based on borrowers ability to pay the initial lower interest rates. And sometimes they didn’t even check that (remember Ninja loans). Today, adjustable-rate borrowers qualify based on their ability to cover a higher monthly payment, not just the initial lower payment.”
Before 2008, banks used to give loans without checking to see if buyers could realistically afford them. These days, lenders verify income, assets, and employment, reducing the risks previously associated with loans like ARMs.
3. Assumable Mortgages
An assumable mortgage allows you to take over a seller’s existing loan, usually including its lower mortgage rate, repayment period, and remaining balance. This can be a great option if the seller was locked into a low mortgage rate, but few are willing to offer it by default. According to U.S. News, more than 11 million homes qualify for an assumable mortgage, so it’s always worth bringing up with your agent or seller.
Conclusion
With mortgage rates looking unlikely to fall below 6% in this year, waiting for a drop may not work out if you’re eager to buy a house in 2025. Consider options like mortgage buydowns, ARMs, or assumable mortgages depending on what makes the most sense for you. Connect with a local lender or expert agent today to explore your options and get the help you need.
Affiliated Updates • General Community News • In The Media •
March 3, 2025
Century 21 Affiliated Ranked #1 in the World for the 11th Year in a Row
MADISON, WI, March 3, 2025 – CENTURY 21 Affiliated is once again the #1 CENTURY 21® franchise in the world, marking an unprecedented 11th consecutive year at #1, and locking in the title of the most successful franchise in the history of CENTURY 21®. This milestone reflects the company’s unwavering commitment to excellence, innovation, and client satisfaction in the real estate industry.
“Our agents and staff continue to set the bar higher every year,” said Dan Kruse, CEO & Owner of CENTURY 21 Affiliated. “Being ranked #1 for 11 years straight is no small feat – it’s a testament to our relentless dedication to providing exceptional service and helping our clients achieve their real estate goals.”
Over the past 11 years, CENTURY 21 Affiliated has continued to expand its footprint, delivering outstanding results across the United States. The company’s success is built on a strong foundation of top-tier training, cutting-edge technology, and a culture of collaboration and growth.
“We are incredibly proud of this achievement,” said Jasen Schrock, President & Owner of CENTURY 21 Affiliated. “It speaks volumes about the talent and dedication of our agents and leadership team. Year after year, they prove why we are the best in the business.”
With a mission to deliver extraordinary experiences, CENTURY 21 Affiliated remains committed to client-focused strategies that drive results.
“We don’t take this ranking lightly,” said Sam Bell, President of Brokerage at CENTURY 21 Affiliated. “It fuels us to keep improving, evolving, and delivering at the highest level. Our success is a direct reflection of the hard work and dedication of our entire team.”
As CENTURY 21 Affiliated looks ahead, the company remains focused on growth, agent success, and maintaining its industry-leading position. With 11 years at the top, the future is brighter than ever.
About CENTURY 21 Affiliated
CENTURY 21 Affiliated is a member of multiple listing services in California, Illinois, Michigan, Minnesota, and Wisconsin, with over 1,500+ sales professionals and 70+ offices. CENTURY 21 Affiliated also specializes in worldwide relocation. At CENTURY 21 Affiliated, the customer comes first. The complete commitment to this philosophy has made CENTURY 21 Affiliated a powerful force in the real estate industry. CENTURY 21 Affiliated has been ranked the No. 1 CENTURY 21® franchise worldwide for over ten years in a row. Visit C21Affiliated.com to learn more.
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General Community News • Real Estate Trends •
February 21, 2025
3 Questions About Selling Your House You May Be Asking
Selling a house is one of the most significant financial and emotional decisions a homeowner can make, and unanswered questions about the market make this decision even harder. Sometimes, sellers’ concerns are based on misconceptions or outdated info, but can be quickly alleviated with a trustworthy agent’s help.
If your own uncertainty about the market is keeping you from selling your house, don’t wait to get the answers you need. Despite rising home prices and stiff demand, the 2025 real estate market is active, and recent reports prove it. If you’re uncertain about selling your house, here are the answers to three you may be asking.
1. Is It a Good Idea To Move Right Now?
If you’re a homeowner itching to make a move, you might be waiting to sell because you don’t to take on a higher mortgage rate on your next house. Between interest rates, inflation, and the job market, it’s both wise and responsible to consider your own finances and the greater state of the economy. The good news is that moving may be a lot more feasible than you think, mainly thanks to how much your house has likely grown in value.
Consider if there’s anyone in your neighborhood who sold their house recently. If so, do you know what it sold for? Considering how much home values have increased since 2021, the final closing price may surprise you. According to Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), the typical homeowner has gained almost $150,000 in housing wealth in the last five years alone.
That’s a significant gain depending on your house’s initial value when you bought. When you decide to sell, the increased value of your home along with the equity you’ve built can make all the difference you need to lock down your new home.
2. Will I Be Able To Find a Home I Like?
If finding the right house is stopping you from selling your house, it’s probably because you remember how hard it’s been to find a home these past few years due to low housing inventory. But thanks to positive inventory trends in today’s market, finding a good home is becoming easier.
According to a January 2025 report from from Realtor.com, home supply has increased nearly 25% since this time last year.
Housing inventory still hasn’t risen to pre-pandemic levels, but it’s improved significantly in the past year since January 2024. Even better, real estate experts say the supply of homes will continue to grow another 10 to 15% in 2025. More houses on the market means more options for you as a buyer, and a better chance of finding the perfect home.
3. Will My House Sell?
Lastly, if you’re worried that buyers aren’t buying thanks to home prices and mortgage rates, here’s some encouraging info. While last year’s home sales were still below normal, about 4.24 million homes sold according to data from the National Association of Realtors (NAR). Experts expect that number to rise in 2025, but here’s how 2024’s break down over time:
- 4.24 million homes ÷ 365 days in a year = 11,616 homes sold each day.
- 11,616 homes ÷ 24 hours in a day = 484 homes sold per hour.
- 484 homes ÷ 60 minutes = 8 homes sold every minute.
To apply some perspective: in the minute it took you to read this paragraph, 8 homes sold last year. And homes are expected to sell even faster in 2025, so rest assured that buyers are still buying. The market may not be back to pre-pandemic levels, but there are thousands of active buyers looking for homes like yours.
Conclusion
Selling your house is a major decision just like buying, but there are plenty of reasons for optimism in 2025. Home inventory is increasing, buyers are becoming more active, and your current home is likely worth more than you think.
Are you thinking of selling but have unanswered questions holding you back? Reach out today and we’ll connect you with an expert local real estate agent who can help.
General Community News • Michigan Community News • Real Estate Trends •
February 13, 2025
Top 10 Best Real Estate Markets for First-Time Buyers in 2025
If you’re like many aspiring homebuyers, the rising cost of living might feel like a major roadblock. From groceries to gas, and yes, especially home prices, everything seems to be getting more expensive.
But even in today’s market, there are still ways to make your homeownership dreams a reality. The key is knowing the current best real estate markets and how to approach your first home purchase strategically.
Think of Your First Home as a Stepping Stone
One of the biggest misconceptions among buyers is that their first home has to be their dream home. The truth is, your very first home doesn’t need to check every box on your wish list. Instead, think of your first home as a stepping stone to your final destination.
Owning a home allows you to start building equity, which grows over time as home prices increase. That equity can be a powerful tool when you’re ready to upgrade to a bigger home or move to a more desirable location in the future.
Rather than waiting until you can afford your dream home in your ideal neighborhood, consider starting with something that fits your current needs and budget. This approach gets you into the market sooner and may cost you in the short-term, but it sets you up for long-term financial growth. Best of all, it’s a real start to eventually buying your dream home at some point in the future.
Explore the Best Real Estate Markets in 2025
If the price of homes in your preferred area are holding you back, it might be worth broadening your search. With some flexibility in location, you can find more affordable options without sacrificing the amenities most important to you. Many first-time buyers find homebuying success by exploring surrounding areas or even considering a move to a different state.
According to a report from Realtor.com, these are the 10 best real estate markets for first-time homebuyers in 2025:
- Rochester, NY with a Median List Price of $129,900.
- Lansing, MI with a Median List Price of $135,000.
- Harrisburg, PA with a Median List Price of $140,000.
- Lauderdale Lakes, FL with a Median List Price of $154,850.
- North Little Rock, AR with a Median List Price of $160,000.
- Baltimore, MD with a Median List Price of $210,000.
- Wilmington, DE with a Median List Price of $222,000.
- Altamonte Springs, FL with a Median List Price of $229,400.
- Tonawanda, NY with a Median List Price of $229,000.
- Villas, FL with a Median List Price of $236.950.
Realtor weighted their market rankings by several factors including median price, location score, number of home listings, average commute time, and others specified in the full report. If one of these cities is in or near your target home location, it’s worth looking to see what properties are available. Even if you don’t find your dream home, you might find the perfect starter home on the path to it.
Stay Local and Look Just Outside Your Preferred Area
If moving to a different state isn’t an option, you can still find affordable homes by expanding your search locally. Sometimes, looking even just 10 to 20 minutes outside your ideal neighborhood can make a significant difference in price. Nearby areas can often offer similar amenities, like access to restaurants, shops, and activities, but at a lower cost.
And the best way to see what’s available is to work with a real estate agent who understands the local market and can help you identify hidden gems nearby. An agent can point you to communities you may not have considered that have lower price tags now and are steadily gaining value and appeal. That way you can buy your first home and be set up to gain equity through the years.
Conclusion
Today’s cost of living is a challenge for many homebuyers, but by exploring 2025’s best real estate markets and working with a knowledgeable agent, you can take that first step toward owning a home this year, and building equity for your future.
How far outside your area would you be willing to look to make your homeownership dreams a reality? Connect with us to discuss your options and find the perfect market for your first home.
General Community News • Real Estate Trends •
February 11, 2025
Home Price Growth Is Slowing in 2025 – What Does That Mean for You?
Over the past few years, home prices have skyrocketed as demand has increased and supply has stiffened. It’s been a frustrating market for buyers, leaving many to doubt their chances of ever owning their own home. But the early weeks of 2025 have brought welcome news: the pace of home price growth is finally slowing down, and that’s a positive shift for anyone looking to buy a home.
Home Price Growth Drops to a Healthy Pace
At the national level, home prices are still rising, but at a much more normal, manageable rate compared to the double-digit spikes we saw in 2021 and 2022. Recent data from Case-Shiller show that in November 2024, the year-over-year increase in home prices was just 3.8% nationally, a clear drop from Pandemic rates:
What does this mean for you? For one thing, you’re less likely to experience the sticker shock that was common just a few years ago. The days of rapid price jumps that made it difficult to plan or pursue your purchase are behind us, and projected drops in mortgage rates this year paint an even more positive picture. More stable price growth also means that the home you buy today is still likely to appreciate in value over time, helping you build equity and secure your financial future.
Real Estate Is Local: Prices Vary by Market
While the national trend is pointing to more moderate price growth, keep in mind that all real estate is local. Some markets are still experiencing strong demand and upward price pressures, while others are cooling off or even seeing declines. For example, smaller, more affordable metro areas are still seeing significant demand and price increases. As CoreLogic Chief Economist Selma Hepp explains:
“Regionally, variations persist, as some affordable areas – including smaller metros in the Midwest — remain in high demand and continue to see upward home price pressures.”
Meanwhile, other regions, particularly those in southern markets, experienced slight month-over-month declines in November, according to Federal Housing Finance Agency (FHFA) data:
Differences like these highlight the importance of understanding what’s happening in your specific market. National averages can provide a general idea, but they rarely give you the whole picture. That’s where the knowledge and expertise of a local real estate agent can really help. They can help you understand local trends, identify opportunities, and create a buying strategy tailored to your needs and budget. Whether you’re buying in a high-demand market or one that’s cooling off, having a local expert on your side ensures you’re making more informed and confident decisions.
Conclusion
Home prices in early 2025 are growing at a more manageable pace, giving you the opportunity to plan your purchase without fearing the rapid price hikes of recent years. Connecting with a local real estate agent can help you navigate your area’s local home market, and make the best decision possible.
If you’re thinking about buying a home, 2025 is shaping up to be a great time to explore your options. Reach out to us today to connect with a local expert who can help you buy with confidence and find the perfect home for you.
Madison, WI • Wisconsin Community News •
February 6, 2025
FHA Home Loans in Wisconsin
If you’re in the market for a home in Wisconsin, you may have heard of FHA loans, or Federal Housing Administration loans, as a financing option. These government-backed loans are a popular choice for first-time homebuyers and those with less-than-perfect credit. In this guide, we’ll break down everything you need to know about FHA loans in Wisconsin, along with benefits and requirements of state-specific programs that can help you achieve your dream of homeownership.
What are FHA Home Loans?
FHA loans are mortgages insured by the Federal Housing Administration (FHA) and are designed to make homeownership more accessible, especially for Americans who may not qualify for a traditional mortgage or other loans. This reduces the risk for lenders and allows them to offer lower down payments and more lenient credit requirements. This also makes FHA loans particularly appealing to first-time buyers or those with limited savings.
Here are a few ways that FHA loans stand out from other options:
- Low Down Payment: You can qualify with as little as 3.5% down if your credit score is 580 or higher, meaning that up to 96.5% of a home’s value can be borrowed through an FHA loan.
- Flexible Credit Requirements: FHA loans are more forgiving of lower credit scores compared to conventional loans. Borrowers with scores as low as 500 may still qualify with a 10% down payment.
- Competitive Interest Rates: Being backed by the federal government, FHA loans often have lower interest rates than conventional loans, making monthly payments more affordable.
- Mandatory Mortgage Insurance: FHA loans require both an upfront mortgage insurance premium (UFMIP) and an annual mortgage insurance premium (MIP), which is paid monthly.
These are just a few ways FHA loans can help homebuyers overcome financial barriers and make homeownership a reality for more Americans. With lower credit score requirements and lower down payments, it’s an easier pathway to securing a loan and finally owning a house.
Current FHA Loan Interest Rates in Wisconsin
As of February 2025, the average interest rate for a 30-year fixed FHA loan in Wisconsin is 6.24%, with an APR of 6.92%. These rates are slightly lower than conventional loan rates, making FHA loans a more cost-effective option. However, rates vary depending on your credit score, the lender, and the loan type and length, so always explore your options and compare offers when possible.
FHA Loan Requirements in Wisconsin
To qualify for a FHA home loans in Wisconsin, several key criteria must be met to ensure that potential borrowers are financially stable and capable of repaying their loan. Most notably, applicants need to demonstrate a reliable employment history and income.
Here’s a summary of the main eligibility criteria:
- Credit Score: As of 2023, a minimum score of 580 is required for a 3.5% down payment. Scores between 500 and 579 require a 10% down payment.
- Debt-to-Income Ratio (DTI): Your total monthly debt, including the mortgage, should not exceed 43% of your income, though some lenders may allow up to 57% in certain cases.
- Employment and Income: You’ll need a steady employment history of at least two years and verifiable income.
- Primary Residence: The home must be your primary residence.
- Property Standards: The property must meet FHA’s minimum standards for safety and livability, as determined by an FHA-approved appraiser.
- Loan Limits: For 2025, the FHA loan limit for a single-family home in most Wisconsin counties is $524,225. In higher-cost areas like Pierce and St. Croix counties, the limit is $529,000.
By meeting these requirements, you better position yourself for loan approval. It can also simplify the loan process, making it smoother and preventing potential setbacks or delays.
Applying for an FHA Loan in Wisconsin
Applying for FHA home loans in Wisconsin is straightforward but involves several basic steps. Borrowers should start by researching and comparing various FHA-approved lenders to find the best loan terms and secure the best deal.
After selecting a lender, borrowers complete the FHA loan application process. This process may vary between lenders, but should follow the same general steps. Here’s an overview of the major stages involved:
- Find an FHA-Approved Lender: Choose a lender approved by the FHA. Most banks, credit unions, and mortgage companies offer FHA loans.
- Pre-Approval: Get pre-approved to determine your budget and show sellers you’re a serious buyer.
- Submit Your Application: Provide details about your income, employment, and the property you want to buy .
- Provide Documentation: Submit tax returns, pay stubs, bank statements, and other financial documents.
- Property Appraisal: The lender will order an appraisal to ensure the home meets FHA standards and is worth the loan amount.
- Underwriting: The lender reviews your application to ensure you meet all FHA requirements.
- Closing: Sign the final paperwork, pay closing costs, and officially become a homeowner.
Wisconsin-Specific Programs to Pair with FHA Loans
Certain areas in Wisconsin may offer programs that can make FHA loans even more affordable. These programs are most common in larger metropolitan areas like Madison and Milwaukee, but some are available statewide through the Wisconsin Housing and Economic Development Authority (WHEDA). Here are a few options to explore if you’re planning to buy a home in Wisconsin:
- WHEDA Down Payment Assistance: The Wisconsin Housing and Economic Development Authority (WHEDA) offers programs like the Easy Close DPA, which provides up to 6% of the home’s purchase price as a second mortgage. Another option is the Capital Access DPA, offering $7,500 with no interest or monthly payments
- City of Madison’s Home-Buy the American Dream Program: Provides up to $35,000 in down payment and closing cost assistance, deferred until the home is sold or refinanced.
- Milwaukee Down Payment Assistance: Offers forgivable grants of up to $7,000 for homes in designated areas, provided the buyer contributes at least $1,000 and lives in the home for five years.
- Local Assistance Programs: Many cities and counties in Wisconsin offer grants or zero-interest loans for first-time buyers. Check with your local housing authority for details.
Conclusion
FHA loans are an excellent choice for hopeful homebuyers, especially first-time buyers or those with limited savings. By combining the benefits of FHA loans with Wisconsin-specific programs like WHEDA’s down payment assistance, you can make your dream of homeownership a reality. Whether you’re buying in Milwaukee, Madison, or a smaller town, understanding the FHA loan process and available resources will help you make informed decisions and secure the best deal for your new home.
If you’re ready to take the next step, start by finding an FHA-approved lender and exploring the down payment assistance programs available in your area. With the right preparation, you’ll be well on your way to owning a home in the beautiful state of Wisconsin!
Ready to buy but not sure how to secure a loan? Reach out to us today for help finding a qualified lender that works for you.
General Community News • Real Estate Trends •
February 5, 2025
2025 Housing Market Predictions: What Do the Experts Say?
Wondering how the housing market is expected to change in 2025? And more specifically, what it all means for you if you plan to buy or sell a home? As always, the best way to get that information is to consult the pros.
Experts are constantly refining their predictions in response to changes in the market and overall economy. Here’s the latest information on two key factors sure to influence the housing market in 2025: mortgage rates and home prices.
Will Mortgage Rates Come Down?
Mortgage rates remain one of the strongest factors influencing the market, and everyone is waiting for them to come down. The real question is: will they drop, and how quickly?
The good news is that mortgage rates are indeed projected to ease a bit in 2025, falling into the mid-6% range on average. But experts say not to expect a return to 3-4% mortgage rates, at least not this year. As Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), says:
“Are we going to go back to 4%? Per my forecast, unfortunately, we will not. It’s more likely that we’ll go back to 6%.”
Other experts agree with Yun’s 6% prediction. They’re forecasting rates could settle in the mid-to-low 6% range by the end of 2025 (see chart below):
But remember that the market can change quickly, and experts will revise their predictions as the new year continues. Market forecasts are based on what experts know right now. And since everything from inflation to economic drivers have an impact on where rates go from here, some ups and downs are still very likely. So, don’t get caught up in the most exact numbers and try to time the market. Instead, focus on the overall industry trend and on what you can actually control.
A trusted lender and a local agent partner will make sure you’ve always got the latest data and the context on what it really means for you and your financial goals. With their help, you’ll see that even a small decline in mortgage rates can help bring down your future mortgage payment when you decide to buy.
Will Home Prices Fall?
The short answer? Not likely. While mortgage rates are expected to ease, home prices are projected to keep climbing in most areas – but at a slower, more normal pace. If you average the expert forecasts together, you’ll see prices are expected to go up roughly 3% next year, with most of them hitting somewhere in the 3 to 4% range. But this is a much more typical and sustainable rise in prices compared to (see graph below):
If you’re thinking of buying in 2025, don’t expect a sudden drop to score you a big deal. That may sound disappointing if you’re hoping for home prices to come down, but this means you won’t have to deal with the steep increases we saw in recent years. You’ll also likely see any home you do buy go up in value after you get the keys in hand, and this can turn into a great investment over time.
Like many buyers, you might be wondering how it’s even possible that home prices are still rising. The answer all comes down to supply and demand. Even though there are more homes for sale now than there were in 2024, it’s still not enough to keep up with all the active home buyers on the market. As Redfin explains:
“Prices will rise at a pace similar to that of the second half of 2024 because we don’t expect there to be enough new inventory to meet demand.”
Keep in mind that the housing market is hyper-local, so this will vary by area. Some markets will see even higher prices, and some may see prices level off or even dip if inventory is up in that area. In most places though, prices will continue to rise as they usually do.
If you want to find out what’s happening in your local housing market, it always helps to lean on an agent who can explain the latest trends and what they mean for your homeownership plans.
Conclusion
The housing market is always changing, and 2025 will be no different. With mortgage rates likely to ease down to the 6% range and prices rising at a slower, more sustainable pace, it could be a great time to finally buy or sell. As always, it’s all about staying informed and making a plan that works for you.
If you’re in the market to buy or sell a home in 2025, let’s connect you with a local agent who can give expert advice on what’s happening in your area and make sure your next move is a smart one.
General Community News •
January 27, 2025
3 Reasons To Buy a Home Before Spring
Buying a home before spring
Let’s face it — buying a home can feel like a challenge with today’s mortgage rates. You might even be thinking, “Should I just wait until spring when more homes hit the market and rates might be lower?”
But here’s the thing, no one knows for sure where mortgage rates will go from here, and waiting could mean facing more competition, higher prices, and a lot more stress.
What if Buying a home before spring might actually give you the upper hand? Here are three reasons why that just might be the case.
1. Less Competition from Other Buyers
The winter months tend to be quieter in the real estate market. Fewer people are actively looking for homes, which means you’ll likely face less competition when you make an offer. This makes the process feel less rushed and less stressful.
According to the National Association of Realtors (NAR), homes sit on the market longer in winter compared to spring and summer (see graph below):
Fewer buyers in the market means you’ll likely have more time to make thoughtful decisions. It also means you may have more negotiating power. According to the Alabama Association of Realtors:
“A significant benefit of buying a home in winter is the reduced competition. Because of the perceived benefits of spring, many buyers delay the start of their house hunt. As a result, you will find fewer people competing for the same properties during winter. Less demand can translate into more negotiating power as sellers may be more willing to entertain offers or agree to concessions to get a deal closed quickly.”
2. More Negotiating Power
With homes staying on the market longer, sellers may be more willing to negotiate. This can lead to better deals for you as a buyer, whether that means a lower price or added incentives, like sellers covering closing costs or making repairs. As Chen Zhao, an Economist at Redfin, points out:
“. . . buying during the off season means less competition from other buyers. That means potentially negotiating a better deal.”
Plus, when demand is lower, sellers often feel more pressure to work with serious buyers. This could give you an edge to negotiate terms that work best for your situation.
3. Lock in Today’s Prices Before They Rise
Historically, home prices tend to be at their lowest point in the winter months, too. According to data from NAR, home prices last year were at their lowest in January, February, and March — right before the spring buying season kicked in (see graph below):
This trend isn’t new — Bright MLS shows between 2010 and 2024, home prices in January and February were, on average, 15% lower than during the month of peak home prices (typically June). Buying in the off-season means you’re more likely to avoid paying the premium prices that come with the high demand of spring.
On top of that, home prices generally appreciate over time, meaning they tend to go up year after year. That means if you’re ready to buy and you can make it happen, you’re not only taking advantage of what might be the lowest prices of the year, but you’re also locking in today’s price before it increases in the future.
Bottom Line
While spring may seem like the obvious time to buy, moving before the peak season can give you significant advantages, like less competition, more negotiation power, and lower prices.
Start your home buying journey by visiting our Property Search page.
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Affiliated Updates • In The Media •
January 13, 2025
Dan Kruse of CENTURY 21 Affiliated Recognized Among the Industry’s Most Influential Leaders
[Madison, WI] – January 13, 2025 – CENTURY 21 Affiliated is proud to announce that its President and CEO, Dan Kruse, has been ranked #109 on the prestigious 2025 Swanepoel Power 200 (SP 200), a definitive ranking of the most powerful and influential leaders in the residential real estate industry.
The Swanepoel Power 200, published annually by T3 Sixty, evaluates leaders based on their achievements, influence, and contributions to the real estate industry. The ranking underscores Kruse’s dedication to innovation, leadership, and commitment to providing unparalleled value to CENTURY 21 Affiliated agents, clients, and communities.
Dan Kruse – CEO and President of CENTURY 21 Affiliated
“I am incredibly honored to be recognized among so many trailblazers in our industry,” said Dan Kruse. “This acknowledgment is a reflection of the extraordinary efforts of all our CENTURY 21 Affiliated real estate professionals. Together, we are setting a standard of excellence for agents and clients alike.”
Under Kruse’s leadership, CENTURY 21 Affiliated has solidified its position as one of the largest and most successful CENTURY 21 franchises in the world, with a steadfast focus on agent support, cutting-edge technology, and community engagement. His forward-thinking strategies have led to record-breaking achievements for the company, including expanding its footprint across multiple states, fostering a culture of growth and innovation, and holding the record for most transactions by a single CENTURY 21 franchise.
Kruse’s inclusion on the SP 200 highlights his role as a visionary leader driving success not only for CENTURY 21 Affiliated but also for the real estate industry as a whole.
For more information about CENTURY 21 Affiliated and its innovative approach to real estate, please visit C21Affiliated.com.
About CENTURY 21 Affiliated
CENTURY 21 Affiliated is a member of multiple listings services in California, Illinois, Michigan, Minnesota and Wisconsin with more than 1,400 sales professionals and 60+ offices. CENTURY 21 Affiliated also specializes in worldwide relocation. At CENTURY 21 Affiliated, the customer comes first. The complete commitment to this philosophy is what has made CENTURY 21 Affiliated such a powerful force in the real estate industry. CENTURY 21 Affiliated has been ranked the No. 1 CENTURY 21® franchise in the world for eleven years.
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