01/05/2025
🏠 Common trends and predictions that are generally expected in real estate for 2025:
🏙️ Continued Interest in Suburban and Rural Areas
Many buyers are expected to continue seeking properties in suburban and rural areas. The desire for larger homes, outdoor spaces, and the flexibility of remote work is still influencing demand. While major cities might still have some draw, smaller and more affordable locations will likely see more activity.
📈 Moderate Home Price Growth or Stability
After years of rapid price increases, many experts predict more stability in home prices. The market is expected to cool down slightly with price growth moderating. This is largely due to higher interest rates, which may dampen buyer enthusiasm, and overall economic uncertainties. However, regional markets might still experience price increases depending on local demand and supply constraints. This would be true for the Savannah market, as we are experiencing the largest economic expansion in the state.
💯 Mortgage Rates and Affordability Challenges
Higher mortgage rates are expected to continue affecting affordability in many markets. While the rates may not rise drastically, they are likely to remain elevated compared to the historic lows seen in previous years. This will make home ownership more challenging for first-time buyers and may lead to slower overall sales volume. Most predictions indicate the rates will go lower in 2025, but move back up in 2026.
🌳 Increased Focus on Sustainability and Energy Efficiency
As climate concerns grow, more buyers are placing emphasis on sustainability. Energy-efficient homes, green building certifications, and homes with solar panels or eco-friendly features are likely to see increasing demand. Buyers are looking to reduce long-term utility costs and their environmental footprint.
🔨 More Inventory as New Construction Picks Up
Many builders are expected to ramp up construction to address housing shortages, especially in high-demand areas. This increase in new construction could lead to a more balanced market by offering more inventory, which will benefit buyers looking for newly built homes. However, it could take time for inventory to match demand.
Ivy Eilerman
912-656-3524
[email protected]
NMLS 665216
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