By Jacqueline Beardsley
Projected Real Estate Forecast
What will be expected in 2025?
Throughout 2024, many conditions affected homebuying. In September, the Federal Reserve cut rates, however, that didn't lead to lower mortgage rates.
The Illinois unemployment rate increased and affordability remained an issue for homebuyers in 2024.
The IHS's (Institute For Housing Studies at DePaul University) 2025 Housing Market Forecast feels there will be an increase in closed sales for the Chicago area of 3.5% compared to 2024.
Home prices will continue to grow in 2025, at a possible increase of 6% compared to 2024.
The Case Shiller Home Price Index indicated house prices increased in the majority of the country and inventory remained low in most of Illinois.
The higher interest rates have kept many homeowners from selling because they are locked in at lower rates.
Three month outlook - IHS's forecast indicates the level of closed sales will follow seasonal trends, declining by 30.2 between December and January, then rise in the months to follow.
In this projection, sales will be about the same as December of 2024.
From January - March of 2025, sales are expected to slightly decline by 1.1% year over year.
Between December 2024 - March 2025 Single-family house prices are estimated to increase 4.6%.
This forecast would show a 6.4% increase in prices year over year between March 2024 and 2025.
So far the projection for interest rates will be around 6% in 2025.
You can keep current on all market activity through my monthly newsletter. Be sure to check out my quarterly in-depth report for Naperville's housing market stats in the new BEARDSLEY REAL ESTATE REPORT starting April 1st.
*The information provided in this post came from the Institute for Housing Studies.
