After several years of “fast and furious” home sales in our region and across the country, the last few years have come back to a more normal market that has been much more challenging for buyers and sellers alike. But predictions for 2025 show a more positive outlook for the year.

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One of the leading factors is the presidential elections being behind us. History has shown that after a presidential election, no matter which candidate wins, home sales tend to get a positive bump.

On the buying side, mortgage rates dropping, even if slightly should encourage more people to purchase homes in 2025. Additionally, the definition of “home buyer” is changing as in addition to married couples buying homes there are more multigenerational home purchases with families pooling money together to afford a home. There is also a rise in cash home purchases as well.

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On the selling side, homeowners feel prosperous as prices have risen dramatically in recent years. More listings are becoming available for sale, and the economy is improving. All of these variables could encourage more Americans to move in the coming year.

Other factors that point to growth in home sales are an increase of people working and gains in the stock market. With more people working and the economy improving, there is more optimism which leads to a bump in home sales. The inventory of homes available to buy is also increasing, which is another positive sign.

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According to the National Association of Realtors, existing home sales should rise 9% and new home sales to go up by 11%.

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The Wall Street Journal reports that mortgage rates in the United States have risen above 7% by January 2025, reaching 7.04% for a 30-year fixed mortgage. Rates had dropped into the sixes, but have since nudged to just above 7%.

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In late 2024 there was optism that rates would reach 6% and settle there in 2025, but because of persistent inflation it hasn’t dropped as quickly as hoped.

Dorrie Love, of Love Real Estate Group, states, “A lot of people are still waiting for prices to come down and they may be waiting a while. When you compare Q4 2023 to Q4 2024 in both Fayette and Coweta counties here’s one thing that remains true: the average sales price went up 10% and 5%, respectively, according to Georgia Multiple Listing Service stats. Conversely, homes are staying on the market a little longer. Coweta boasts a 35% increase in listed single family homes, thanks to new construction, while Fayette listings were up a little over 5%. Living in our area affords enhanced quality of life, safe communities, and good schools. As long as all these remain, people will want to live here.”