Your playbook for a winning year
If 2024 was a roller coaster, 2025 will be a championship game – and every buyer, seller and homeowner has a chance to win big.
After a year full of interest rate fluctuations, unpredictable markets and a bit of drama (thanks, inflation), the real estate world is ready for a new start. Whether you’re looking to buy your first home, upgrade, or simply gain clarity on the current market, this guide is your insider’s playbook to face 2025 with confidence.
To close in 2024
Let’s make one thing clear: 2024 kept us on our toes. Interest rates were as unpredictable as the weather in Vegas, dropping to 5.75% in September before rising again to nearly 7.125%. Despite this, the Las Vegas housing market held steady with steady appreciation, up 5-7%.
The most important takeaway? Real estate is resilient and the market has once again proven that patience and strategy pay off.
Preparing for 2025
Here’s the good news: 2025 will stabilize. Although no one can really predict mortgage rates, there are several factors that come into play; Industry forecasts expect interest rates to fluctuate between 5.5% and 6%, with possible falls below 6% by mid-year. When that happens, expect an increase in activity as buyers who have been waiting on the sidelines finally take action.
Spring will bring the usual momentum: warmer weather, more visitors and more market activity. By March we will likely see a healthy increase in sales. If you want to buy or sell, now is the time to start preparing.
New buyers: it’s your moment
Let’s talk about first-time buyers on the housing market. If you belong to this group, 2025 could be your year.
This is your game plan:
- Check your credit: A score of 640 opens the door to FHA loans and down payment assistance programs. Increase it to 680 to access better DPA rates and terms. Ultimately, your long-term credit score goal should be to eventually reach a median credit score of 760 for better rates and terms.
- Save strategically: Even with down payment help, you’ll need some savings for earnest money and closing costs. Sellers are offering incentives now, but they may decrease as the market warms up in the spring.
- Prepare early: Speak with a mortgage professional now to position yourself for success when the right home comes on the market.
Pro Tip: Today’s market is buyer-friendly. Many sellers offer to cover 2-3% of the closing costs. This is a trend that may not continue once the market picks up. I recommend that if you want to buy something, there is no better day than today.
The price reality
Let’s address the elephant in the room: interest rates. Yes, they are higher than the historic lows we saw during COVID, but that was a one-time anomaly. The long-term average of the past 25 years? About 7.5%.
Here’s why this is important: While current interest rates are higher than in recent years, they are still below average. Plus, buying now means you’re building equity while others wait, and you’ll have the opportunity to refinance if interest rates drop in the future.
The year in which a “normal” market returns
The word on everyone’s mind is ‘normal’. After years of market fluctuations, 2025 is poised to deliver a balanced, healthy real estate environment. Inventory levels should gradually rise, especially if interest rates fall below 6%, as homeowners with low mortgage rates finally feel comfortable selling and upgrading.
For both buyers and sellers, this means more opportunities, fewer bidding wars, and a market that feels refreshingly predictable.
The bottom line
2025 is not just another year – it is an opportunity to reset, refocus and thrive. With stabilizing rates, motivated sellers, and a steady valuation forecast, it’s time to make your move. Whether you’re buying your first home, upgrading to your dream home, or taking out a solid refinance, you have the tools to make big profits this year.
So, what’s your game plan?
Tim Deibert, chairman of the memorandum. A mortgage agency.
This column does not necessarily reflect the opinion of HousingWire’s editorial staff and its owners.
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