Housing Market Predictions for 2025: What to Expect

As we step into 2025, the housing market presents a dynamic landscape for both existing and new homes. Understanding these trends can empower you to make informed decisions about buying a new home. Here's an overview of a few key predictions shaping this year's real estate market.

Mortgage Rates and Affordability

According to MarketWatch mortgage rates are expected to remain relatively high, averaging around 6% throughout 2025. This sustained elevation continues to impact affordability, influencing both buyer demand and seller strategies.

However, the good news for First America Homes buyers is that even with higher interest rates, buyers can take advantage of promotions and communities with low tax rates to help offset these costs.

Home Prices and Sales Activity

Home prices are projected to experience modest growth, with estimates from the National Association of Realtors up 2% over the year. This gradual appreciation reflects a market striving for balance amid economic uncertainties.

According to Lawrence Yun, chief economist of the National Association of REALTORS, existing home sales are anticipated to rise by approximately 9% while new home sales may see an 11% increase, indicating a cautiously optimistic outlook for market activity.

The takeaway? As prices and demand continue to increase, the time to buy is now! Make an appointment with one of our knowledgeable sales consultants who can answer your questions and walk you through each step of the home-buying experience.

2025 Housing Inventory Levels and New Construction

Inventory constraints persist, with a notable decrease in homes for sale compared to previous years. In Texas, for instance, the number of homes for sale decreased by 14% in June 2024 compared to 2023 according to Houzeo. This shortage underscores the need for increased new construction to meet buyer demand.

At First America Homes we are meeting this growing demand. In 2025 we are opening new sections in some of our popular existing communities, developing new communities in the San Antonio area and working on more plans for growth in the future. It’s a great time to buy a new construction home!

Design Trends and Buyer Preferences in 2025

These home design trends in 2025 from The Courier-Mail emphasize functionality, sustainability and adaptability. Key trends include:

Barkitecture

Pet-friendly features are becoming increasingly popular, enhancing appeal for pet owners. Some of the pet-friendly features we offer in our First America Homes communities include dog parks, scenic walking trails and acreage homesites with plenty of room for you and your furry friends.

Flexible Spaces

Open layouts and flexible floorplans like the ones offered by First America Homes allow for multi-functional spaces. Whether you’re looking for a media room, work-from-home office or space to entertain, you have options!

Spa-like bathrooms

They’re not just for high-end hotels and mansions anymore. Buyers are looking for zen-like bathrooms with practical and aesthetically pleasing features. With over 50 First America Homes floorplans to choose from, you’re sure to find your ideal bathroom escape.

Is a New Home in Your Future?

The 2025 housing market is predicted to be characterized by modest growth, persistent inventory challenges and evolving design preferences. Staying informed about these trends is essential when you’re buying a home in the current environment. If you’re ready to buy a home this year, we’re here to help. Schedule an appointment with one of our sales consultants today and make 2025 the year you make your homeownership dreams come true.