Luxe Austin Homes - mortgage rates

"2025 could bring some relief to one major housing challenge. Here's what to expect in the new year."

Austin Business journal shares, "More rate volatility, more affordability challenges — but slightly more inventory.

Those are some of the predictions among housing economics for the 2025 for-sale housing market. Beset by continued home-price appreciation, scarce inventory and a mortgage lock-in effect — not to mention sweeping industrywide changes — buying and owning a home continues to be out of reach for many.

Here's what to expect in the U.S. housing market next year.

Inventory and home sales

The biggest potential for relief in 2025 could come from an uptick in inventory.

While many existing homeowners are carrying a mortgage rate of 4% or less, life events and a broader acceptance that rates likely won't drop down to those levels…

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"The Unsung Power Players of Real Estate: How Gen X Carves Up a Significant Slice of the Market"

Realtor.com writes, "The real estate market seems to be constantly buzzing about baby boomers, Millennials, and Gen Z, but what about Gen X?

Born between 1965 and 1982, Gen X is the smallest age cohort by population, but they’re no less mighty when it comes to the housing market.

As a sandwich generation wedged between Millennials and baby boomers, Gen Xers are increasingly stepping up to keep their parents and children afloat while redefining how we live, buy, and move in today’s real estate landscape.

How exactly?

Though Gen X accounts for just 19% of the U.S. population, a new National Association of Realtors® report reveals they represent 24% of recent homebuyers—a significant slice of the market. Around 60% of Gen Xers own their…

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"Prices still at record levels even as existing-home sales tick up"

Key takeaways

• Existing-home sales in October 2024 rose 3.4 percent from the previous month and 2.9 percent from a year ago, according to the National Association of Realtors — the metric’s first annual gain since 2021.
• The nationwide median sale price was $407,200, up 4 percent from last year and the highest October median on record.
• Inventory in October was at a 4.2-month supply — still tight, but a sign that buyers are gaining more bargaining power.

Bankrate.com writes, "The housing market suffered from sluggish sales again in October 2024, but sales volumes finally are looking up. And home prices remain near record highs, a new report by the National Association of Realtors (NAR) shows.

The median home-sale price marked the highest…

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"Sales of Existing Homes Rise Annually for First Time in 3 Years"

Realtor.com reports, "Sales of previously owned homes rose in October following a brief dip in mortgage rates, and posted their first year-over-year gains since 2021.

Total existing-home sales increased 3.4% from September, to a seasonally adjusted annual rate of 3.96 million last month, the National Association of Realtors® reported on Thursday. The October sales figure, which excludes new construction, represented a 2.6% gain from one year ago.

Median home prices continued to rise on an annual basis last month, increasing 4% from October 2023, to $407,200. It marked the 16th consecutive month of year-over-year price increases.

The annual gain in home sales was the first seen since July 2021. However, the year-over-year gain was boosted by…

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"Homebuyers can afford to be picky as Austin housing inventory rises"

CultureMap Austin shares, "The latest real estate report from Unlock MLS and the Austin Board of Realtors (ABoR) has revealed housing inventory is still on a steady rise in the Austin-Round Rock-San Marcos MSA, creating more choices for potential homebuyers as they navigate a high interest rate market.

Residential home sales dipped by a mere 1.5 percent year-over-year from October 2023, amounting to 2,248 closed sales in the Austin-Round Rock-San Marcos MSA. Median prices have also dropped to $430,000, or 3.2 percent less than this time last year. More than 3,300 new home listings were added on the market — a 7.4 percent increase from 2023 — bringing the total number of active home listings to 11,599.

According to Unlock MLS and ABoR housing…

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"Housing inventory, listings increase in Austin metro as mortgage rates remain elevated"

Austin Business Journal reports, "Mortgage rates remain elevated compared to recent years, but Austin-area homebuyers have a robust inventory of choices, according to the latest market data from the Austin Board of Realtors and Unlock MLS.

The median sale price for homes fell slightly in October to $430,000, a 3.2% drop from the same time last year. And with a housing inventory that eclipsed the five-month mark, buyers had plenty of options.

Meanwhile, overall transaction volume remained flat year-over-year, as both active and new listings increased compared to October 2023.

But elevated mortgage rates — the average 30-year fixed-rate mortgage was 6.79% for the week of Nov. 7 — continue to be the biggest factor affecting home sales, said…

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"Housing Market Predictions For 2025: When Will Home Prices Drop?"

Forbes Advisor writes, "Home prices remain at record highs and mortgage rates are climbing again. Is there any relief in sight for buyers? Potentially. Although home prices continue to break records, they’re rising at a slower pace due to loosening inventory and sluggish demand—and experts project further price growth deceleration in 2025.

Meanwhile, even as many are still waiting for lower mortgage rates before taking the home-buying plunge, pending sales data indicates that at least some prospective buyers are starting to dip their toe into the market.

In fact, experts say now might be the ideal time for buyers to get ahead of a potential demand surge in 2025—one that could drive home prices up again and leave some would-be homeowners out in…

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"Assumable Loans: How To Get One of These Coveted Mortgages"

Realtor.com writes, "Many would-be homebuyers today are sidelined due to one financial hurdle: high mortgage rates that are pushing ever closer to 7%. Yet instead of getting a 2024 rate, some Veterans can get a low rate from years ago.

For military families, Veterans Affairs loans (or VA loans) offer a unique edge: the option to assume an existing VA loan from a seller, keeping the original low rate intact.

For qualifying buyers, these assumable VA loans, known as assumable mortgages, can mean major savings—especially when today’s rates are considerably higher than what sellers locked in years ago.

“If both buyer and seller are VA loan-eligible, the seller can pass on their current mortgage, and current rate, to the buyer without forfeiting…

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"Housing market hits highest inventory since 2019 as sellers flood the market"

The New York Post writes, "The housing market is finally giving buyers some breathing room.

After two years of skyrocketing prices and shrinking inventory, the number of homes on the market just hit its highest level since 2019, sparking hope for frustrated buyers across the country.

In October alone, available homes surged 29.2% from last year, marking a full year of growth in listings, according to an analysis by Realtor.com.

Homeowners nationwide are throwing up “For Sale” signs in droves, especially in former pandemic hot spots like Austin, Memphis and Orlando.

These “boomtowns” are making a comeback in a big way, with Austin inventory jumping a staggering 40.1%, while Memphis and Orlando posted gains of 39.2% and 26.6% respectively.

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"There Are Now 30 Renters for Every Home for Sale in the U.S."

Realtor.com reports, "the number of homes for sale for each renter household in the U.S. remains near record lows, highlighting the supply crunch that first-time buyers face in the current housing market.

Currently, there are about 30 renter households for each available home for sale, up from less than 10 in 2006, according to Freddie Mac’s latest market outlook report.

The supply shortage dates back to the Great Recession, which dealt a major blow to new home construction. Since then, construction has slowly increased, but failed to keep pace with demand, resulting in a shortage of at least 1.5 million homes.

“Therefore, not only do people seeking to buy their first home have to navigate an expensive market, but they also have to compete…

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