If you're planning to buy or sell a home in 2025, there's something you should know: buyers and sellers aren't seeing eye to eye on price. According to a recent survey by Clever Real Estate, there's a $27,000 gap between what buyers think they’ll pay and what sellers expect to get. Buyers are budgeting an average of $386,507, while sellers are eyeing $413,976. So, what’s behind this pricing mismatch, and what does it mean for you? Let’s break it down. What’s Driving the Pricing Gap? The $27,000 gap is rooted in how buyers and sellers view the market.  1. Sellers Are Riding High on Confidence After years of rising home prices, sellers are entering 2025 feeling pretty good. Nearly three-quarters (74%) of sellers believe their property will sell at or above the asking price—but as market conditions stabilize, this isn’t always the case in today’s market. This confidence can lead sellers to set prices higher than buyers are willing to pay.  2. Buyers are Facing Budget Constraints Buyers, on the other hand, are grappling with rising mortgage rates and affordability challenges. Nearly two-thirds of buyers (68%) worry that escalating home prices will delay their purchases.  With budgets stretched thin, buyers may hesitate to meet seller expectations, leading to prolonged negotiations or missed opportunities. 3. Market Trends The majority of buyers and sellers (87%) expect strong demand in 2025, but housing economists are predicting [link to this blog, if published] smaller price increases than in years past. That’s great news for buyers looking for stability—but it might mean sellers need to adjust their expectations. How Buyers Can Navigate the Gap If you’re buying a home, that $27,000 gap might feel daunting—but don’t worry. There are smart ways to navigate it: Know the Market: Research local home prices so you’re prepared to make competitive offers. Understanding where sellers are coming from can give you an edge in negotiations. Be Ready to Compromise: While you might not want to pay full asking price, being flexible on other terms—like closing dates—can help you stand out. Leverage Market Stabilization: While home prices are still rising, the pace is slowing, with many agents predicting increases in the single digits in 2025. This could create opportunities for buyers to negotiate more effectively. How Sellers Can Attract the Right Offers Sellers, if you’re looking to get top dollar, it’s all about setting the stage and pricing strategically. Here’s how: Price it Right: Work with a local agent to set a price that reflects market conditions. Almost half of agents (49%) say pricing is the most important factor in selling a home quickly. Make Your Home Shine: A little extra effort in staging or professional photos can go a long way in justifying your price. Be Open to Negotiation: While it’s tempting to hold out for a dream offer, being flexible can help you close faster and avoid long delays. What It Means for the 2025 Market The pricing gap tells us a lot about the dynamics of the 2025 housing market. Sellers are optimistic, and buyers are cautious. The challenge? Bridging that $27,000 gap in a way that works for both sides. For buyers, it’s about being prepared and realistic about what you can afford. For sellers, it’s about understanding the current market and pricing your home to attract serious buyers. With a little give-and-take, both sides can find success. TL;DR Home buyers expect to spend $386,507 on average, while sellers are aiming for $413,976—a $27,000 price gap. Rising costs have buyers cautious, while sellers are confident they’ll sell at or above asking price. Navigating this gap takes strategy—whether you’re buying, selling, or negotiating. So, are you ready to take on 2025? Let’s bridge that gap together!

Recently, I came across a podcast featuring Skylar Olsen, Zillow’s Chief Economist. Much of the conversation was what you might expect—housing market predictions for 2025 [link to this blog, if published], what Zillow got wrong about 2024, and a breakdown of trends shaping real estate across the country.  In other words, the kind of data I live for. But as the conversation wrapped up, Olsen was asked a question that shifted the focus: “What does homeownership mean to you?” Her response? It wasn’t about numbers or investments—it was about something far more personal. And it made me stop and think about how we, as homeowners (or future homeowners), define the meaning of home. Here’s what she said—and why it stuck with me. Beyond the Numbers Olsen started by acknowledging her analytical side. As an economist, she’s naturally drawn to crunching numbers—comparing the cost of homeownership with renting or investing in stocks.  And sometimes, the numbers might show that owning a home costs more than renting. But here’s where she flipped the script. “That’s the cost of ownership and customization and personalization and vision,” she said. For Olsen, the value of owning a home goes beyond financial ROI. It’s about creating something uniquely yours—a space where you can bring your vision to life in a way renting doesn’t allow. (Side note: When it comes to your monthly budget, crunching the numbers is crucial. It’s all about finding a property that fits your budget and your vision. And, of course, building equity and financial wealth plays into this, too…but let’s save that for another day.) The Freedom of Homeownership Olsen then painted a picture of her own home—something you might not expect from a Chief Economist.  In her backyard, she has chickens. Fruit trees. Flowers. Even pumpkins—though some have started to rot, which, as she joked, are now destined to become chicken snacks. “That is a vision that I can’t create if I was a renter. I don’t know what landlord would let me do this craziness. And that’s what ownership means to me. It’s not just the financials; it’s the optionality, the personals.  “It’s my vision, it’s my castle.” It’s a reminder that owning a home is about more than walls and a roof. It’s about having the freedom to make it your own, whether that means starting a garden, creating a space for family gatherings, or building a sanctuary that reflects your personality. The American Dream, Redefined When you hear the words “the American Dream,” it’s easy to picture the classic image of a single-family home with a white picket fence. But, it’s not the 1950s anymore—and Olsen’s perspective expands on that idea.  “It’s not just, ‘Oh, I want to live in a single-family home.’ You can have the American Dream in a condo in New York—or even as a renter if flexibility is what you value most.” What really defines the American Dream, she says, is vision and choice—and for many, homeownership is the ultimate way to create something that is truly theirs. Takeaways for Homebuyers Olsen’s story offers some key takeaways for anyone considering homeownership: Focus on What Homeownership Means to YouWhile financial considerations are important, it’s equally valuable to think about the emotional and personal aspects of owning a home. What kind of life do you want to create? How do you want your space to reflect your values and goals? Homeownership Isn’t One-Size-Fits-AllThe American Dream looks different for everyone. Whether you’re envisioning a backyard full of chickens or a cozy condo downtown, it’s about finding what feels like “yours.” Consider the Non-Financial BenefitsOwning a home isn’t just an investment in property—it’s an investment in your lifestyle, your vision, and your future. From the freedom to personalize your space to the sense of stability it provides, the benefits go beyond dollars and cents. Olsen’s response reminded me why I love helping people find homes. It’s not just about the transaction; it’s about helping them create a space where they can live their vision—no matter what that looks like. So, what does homeownership mean to you? Is it the freedom to make your space your own? The stability of knowing it’s yours? Or something else entirely?

The 2025 housing market is shaping up to be an interesting one—steady growth, more inventory, and a bit of breathing room for buyers. But let’s be real: behind every steady forecast lies a handful of wild cards that could shift the game. From unexpected mortgage rate swings to federal policies that could either boost supply or throw a wrench in the system, there’s plenty to keep an eye on this year. Let’s break it all down—what the experts predict and what could really shake things up. The Big Picture: What Experts Are Saying About 2025 Before diving into the wild cards, let’s take a look at what the forecasts say about home prices, sales, inventory, and mortgage rates. 1. Home Prices: Modest Increases Ahead Analysts forecast modest home price growth in 2025, with projections ranging from 2% to nearly 5% increase.   While home prices are still climbing, the pace is slower compared to recent years. This is good news for buyers facing affordability challenges, although slight increases still favor sellers who can expect equity gains. 2. Home Sales: Slight Rebound in Activity After a sluggish 2023 and 2024, existing home sales are projected to recover slightly in 2025.   Higher sales activity signals a healthier market, but the pace will depend on mortgage rates and inventory growth. Sellers may benefit from increased demand, while buyers will appreciate slightly more options. 3. Inventory: A Step Toward Balance Economists agree—we can expect an increase in national housing inventory in the double digits:   Inventory is finally improving, giving buyers more options and a bit more negotiating power. However, we’re still not back to pre-pandemic levels, so don’t expect the competition to disappear completely. 4. Mortgage Rates: A Wild Ride Ahead Mortgage rates are the biggest question mark. Most analysts predict rates hovering around 6%, but fluctuations throughout the year could create opportunities for those who act quickly.     Buyers can be on the lookout for rate dips to lock in better terms. For sellers, rates might limit what buyers can afford, so pricing smartly will be key. The Wild Cards That Could Shake Things Up Now for unpredictable factors that could throw the market forecasts into disarray. Here’s what you need to keep an eye on, according to Realtor.com. 1. Mortgage Rate Surprises While forecasts suggest mortgage rates will hover around 6%, unexpected factors could lead to volatility. Economic growth, inflationary pressures, and Federal Reserve policy decisions will all play a role in determining where rates go. The Trump administration’s fiscal policies—including deficit-funded tax cuts and increased spending—could drive inflation higher, keeping mortgage rates elevated. Conversely, successful efforts to curb inflation might stabilize rates or lead to a gradual decline. What It Means for You: Buyers: Stay flexible and prepared to lock in a rate during any dips. Sellers: Be ready to adjust your pricing strategy if rates rise and buyer budgets shrink. 2. Federal Housing Policies With a Republican sweep of the presidency and Congress, new policies could either bolster the housing market or add to its challenges. President-elect Trump has proposed initiatives to decrease building costs and increase supply, including opening federal land for homebuilding and reducing regulatory costs.  However, other policies—such as stricter immigration laws and increased tariffs—could raise construction costs and slow the progress of new home development. What It Means for You: If supply increases, buyers may see more affordable options, easing competition. However, higher construction costs could offset these benefits, keeping affordability out of reach for many. Real estate is always full of surprises, but that’s what makes it exciting. Want to know how these trends could impact you locally? Let’s connect [link to your email or Calendly] and strategize for your 2025 goals.