In 2025, the real estate market is expected to see:
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More homes on the marketBuyers will have more time to consider their options and more leverage in negotiations.
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Lower mortgage ratesMortgage rates are expected to ease in 2025, which should help boost demand. However, mortgage rates rarely follow the expected path, so buyers should expect plenty of ups and downs throughout the year.
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Home price increasesLeading forecasts predict that home prices will increase somewhere between 1.5% and 3.6% in 2025.
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Strong demandHome demand remains robust due to several demographic trends, including millennials reaching their peak homebuying years and the rise of remote work.
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Affordable housingThere's a growing demand for affordable housing, and governments are offering incentives.
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Commercial real estate investment volumeCBRE foresees a modest increase in commercial real estate investment volume in 2025.
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Multifamily sector occupancy and rentsCBRE foresees rising occupancy and rents in the multifamily sector in 2025.
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