Inventory is growing, bringing balance to the market—find out how this shift impacts both buyers and sellers in 2025.
2025 is right around the corner, and I’ve got my top five real estate predictions just for you. If you’re planning on buying or selling, you’ll want to know what’s coming next in the market. Stick with me—I’ve got some eye-opening insights that could change your plans.
Prediction #1: Interest rates will keep dropping. That’s right—interest rates are expected to keep slowly declining. Sounds great, doesn’t it? It should make home-buying more affordable… except there’s a catch. Prices are going up, which might eat into that affordability. So, while rates are going down, the monthly payments might still feel hefty.
Prediction #2: Home prices keep climbing. Here’s the deal: The average home price in the Twin Cities went up by about 3% over the past year. And guess what? It’s not stopping there. Prices will keep climbing. It’s a reminder—waiting to buy means you might pay more later. If you’re thinking about making a move, now could be the time to jump in.
“Remember, all real estate is local, and everyone’s situation is different.”
Prediction #3: More homes will sell. For all you buyers out there who’ve been frustrated by a lack of options—good news! We’re going to see more homes hit the market in 2025, and more of those homes will actually sell. More options mean less competition, which could give you a better chance at landing your dream home. Finally, some breathing room.
Prediction #4: Inventory is growing. The tight seller’s market is fading away. More homes will be sitting on the market longer, and we’ll be closer to a balanced market. What’s a balanced market, you ask? It’s when there’s about 4-6 months of housing supply. This means neither sellers nor buyers have the upper hand—it’s an even playing field. If you’re a buyer who’s been outbid over and over, this shift might finally help you.
Prediction #5: Sellers will need to prep their homes. Attention sellers! Prepping your home properly is key. You could make 10-15% more than the average home just by taking the time to prepare. That’s a huge difference. Simple fixes, a good clean, and staging your home can make all the difference—trust me on this one.
These are my own predictions. Remember, all real estate is local, and everyone’s situation is different. But if you’re curious about what your home could sell for in 2025, I’m here to help. You can give me a call or text at (952) 222-9000. Let’s make 2025 a fabulous year for your real estate dreams.
