Zillow Home Price Predictions for 2025 – NBC 6 South Florida

The recent interest rate cuts have caused many people to consider buying a home. According to real estate information company Zillow, this trend will continue into the new year.

Here are the predictions from experts watching the real estate market:

The Federal Reserve cut interest rates 3 times in a row in 2024, but what will 2025 be like?

Marta Rey Babarro, VP of research/insights at Zillow said, “We’re going to see variation in these mortgages, it’s not going to be completely smooth sailing throughout the year.”

“When mortgage rates go down, we see more people accessing new homes and more homes on the market.”

According to experts at Zillow, by 2025, more single-family homes will enter the market than we have seen in the last five decades.

But why?

“During the pandemic there was a huge boom from construction companies manufacturing new homes, these homes have been completed and they will hit the market in 2025,” explained Babarro.

Cozy places

According to Zillow predictions, buyers will be looking for smaller properties, a sharp shift from what we saw during the pandemic, when they wanted spacious homes.

“People were looking for nicer places. They wanted to access the first home, and the square meters and these gigantic floor plans were not necessary as in the years after the pandemic, ”said Babarro.

As for the South Florida market, they expect prices to continue to rise.

“For Miami, we see in 2025 that house prices will increase by 4%. So homeowners will see investment continue to rise. “

Aside from the migration we’ve seen from other states, Zillow experts say a new generation of buyers will influence prices: Millennials.

Millennials are the largest segment of the market looking for a home. Babarro predicts that they will put pressure on prices, and those prices are likely to rise.

If you’re considering buying a home, Zillow says you should:

-Hire a real estate agent who can guide you.

– Plan well to see how much you can really spend.

Zillow has a tool in their app called Buyability to help you determine that. They also recommend knowing the area you’re buying well, including the weather risks you may face — that’s data they recently added to the Zillow app in the section called Climate Risks.

Speaking of the climate, another prediction from Zillow is that buyers will look for more sustainable properties with features like solar panels that reduce energy use.