HOUSING’S NEXT 12 MONTHS: WHAT INVESTORS, DEVELOPERS, AND BUYERS SHOULD EXPECT The housing market is stepping into an unusually tangled year. Though real estate varies market to market, a long drawn-out federal government shutdown, imposed tariffs, the “One Big Beautiful Bill” (OBBB), inflation, easing mortgage rates, and even talk of 50-year mortgages are impacting all markets. Here’s a pragmatic forecast for the next 12 months, and what it means for investors, developers, and homebuyers. RATES EASE, BUT AFFORDABILITY ONLY CRAWLS BACK Mortgage rates have drifted down from the 2024 highs, hovering near the low 6% range. That level improves payments from last year but still places constraints on buyers and the housing supply. If rates continue a slow downward trend, expect sales volume to be modest with no sign of a boom. In other words, demand grows gradually, and price growth stays subdued in most markets.
DEMAND GROWS GRADUALLY, AND PRICE GROWTH STAYS SUBDUED IN MOST MARKETS.
PAGE 71
Powered by FlippingBook