2024 will soon be in the rearview mirror. Nationally, it has been one of the toughest years for the housing market in recent memory; higher mortgage rates, resilient housing prices, and a continuing trend of low inventory have made affordability a real challenge for many consumers. In Eagle County, we have seen similar trends.
So, what’s in store for the real estate market in 2025? Let’s see what the experts are saying about home sales, price appreciation, mortgage rates, and several other major factors as we head into the new year.
Home Sales
  • Home sales nationwide saw a 3% gain year-over-year in September, which is the lowest we’ve seen since 2010. In Eagle County, we have seen a 4% gain year- over-year. Lawrence Yun, chief economist at the National Association of Realtors, suggests that “maybe the worst is over”.
  • He also predicts that we will see existing home sales rise by 9% in 2025, and new home sales increase by 11%.
Price Appreciation
  • CoreLogic, a major data resource for real estate, forecasts that home prices will appreciate by 2% nationwide in 2025.
  • They also predict Denver, Miami, and Boston among the top markets for price increases next year.
  • Goldman Sachs researchers forecast a 4.4% increase in home prices next year.
Mortgage Rates
  • According to Freddie Mac, the average 30-year fixed rate mortgage has ranged from 6.08% to 7.44% over the last year, and Lawrence Yun says “rates should stabilize at the low end of that range for 2025”.
  • Without an exact percentage, Bernard Markstein, chief economist at Markstein Advisors said that “rates will be lower than current levels…[which] will unleash some of the pent-up demand for housing in 2025”.
Overall, many experts are predicting that affordability will remain a challenge next year. However, if rates go lower than expected, or if we see a notable increase in inventory across new and existing homes, that would help stimulate more activity from buyers. Compared to other areas across the country, Eagle County’s housing market has lower inventory and higher demand, so it’s likely that price appreciation will outpace the national and Colorado averages.