If 2024 was a rollercoaster, 2025 is shaping up to be a rollercoaster—and every buyer, seller and homeowner has a chance to win big.
After a year full of rate changes, unpredictable markets and a little drama (thank you, inflation), the world of real estate is ready for a fresh start. Whether you’re looking to buy your first home, upgrade or gain clarity on the current market, this guide is your insider’s playbook to tackle 2025 with confidence.
Ending 2024
Let’s understand one thing: 2024 kept us in the countries. Interest rates have been as unpredictable as the Vegas weather—dropping as low as 5.75% in September only to climb as high as 7.125%. Despite this, the Las Vegas real estate market has held its ground with strong appreciation, increasing by 5-7%.
The key takeaway? Real estate is resilient, and the market has once again proven that patience and strategy pay off.
Setting the Stage for 2025
Here’s the good news, 2025 is set to stabilize. Although no one can really predict loan rates because there are several factors involved; Industry forecasts predict that interest rates will hover between 5.5% and 6%, with a possible drop below 6% by mid-year. When that happens, expect an increase in activity as buyers who have been waiting on the sidelines finally jump on board.
Spring will bring its usual momentum—warmer weather, increased foot traffic and more market activity. In March, we will probably see a healthy increase in sales. If you are looking to buy or sell, now is the time to start preparing.
First-time buyers: It’s your time
Let’s talk about first time home buyers. If you are in this group, 2025 could be your year.
Here is your game plan:
- Check your credit: A score of 640 opens the door to FHA loans and down payment assistance programs. Increase it to 680 to achieve better DPA values and goals. Ultimately your long-term credit goal should focus on reaching a 760 mid credit score to get the best rates and terms.
- Save systematically: Even with down payment assistance, you’ll need to save some money for down payment and closing costs. Dealers are offering incentives now, but that may wane as the market heats up in the spring.
- Prepare ahead of time: Talk to a real estate professional now to set yourself up for success when the right home comes on the market.
Pro tip: Today’s market is consumer friendly. Most sellers offer to cover 2-3% of closing costs. This is a trend that may not last once the market has started. I recommend if you want to buy, there is no better day than today.
A realistic estimate
Let’s address the elephant in the room – interest rates. Yes, they are higher than the historic declines we saw during COVID, but that was a once in a lifetime mistake. Long term average over the last 25 years? About 7.5%.
Here’s why this is important: today’s prices, although higher than in recent years, are still below average. Plus, buying now means you’re building equity while others wait, and you’ll have the opportunity to refinance if prices drop in the future.
This is the year the “normal” market returns
The word on everyone’s mind is “common.” After years of market volatility, 2025 is poised to deliver a balanced, healthy real estate environment. Inventory levels should rise gradually, especially if rates fall below 6%, as homeowners with subprime mortgages finally feel comfortable selling and upgrading.
For buyers and sellers alike, this means more opportunities, fewer bidding wars and a market that feels refreshingly predictable.
An important point
2025 is not just another year – it’s an opportunity to reset, refocus and succeed. With stable rates, motivated sellers and a strong valuation forecast, it’s time to act. Whether you’re buying your first home, upgrading to your dream home or closing in on a tough repurchase, the tools are in your hands to win big this year.
So, what’s your game plan?
Tim Deibert, note president. Mortgage agency.
This column does not necessarily reflect the opinion of HousingWire’s editorial department and its owners.
To contact the editor responsible for this piece: [email protected].
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