Curious about where the Carolina Coast housing market is headed in 2025? Good news: experts are forecasting promising trends for both mortgage rates and home prices. Whether you’re buying or selling, here’s what to expect and how it could impact your next steps.
Mortgage Rates Expected to Drop
Mortgage rates have a big influence on your plans, and there’s positive news on that front. Experts anticipate that rates will ease slightly throughout 2025. While it won’t be a straight decline, the overall trend should be favorable for buyers and sellers alike. Temporary bumps may happen as economic data and inflation numbers emerge, but the bigger picture points to improved affordability.
Lower rates mean potentially lower monthly payments, giving buyers more flexibility and drawing affordability-conscious buyers back into the market. As Charlie Dougherty, Director and Senior Economist at Wells Fargo, notes:
“Lower financing costs will likely boost demand by pulling affordability-crunched buyers off of the sidelines.”
This shift could bring more buyers and sellers back into the market, creating a balance of inventory and competition. To navigate this evolving landscape, work closely with a Carolina Coastal Group agent who can guide you through how these rate changes affect local demand.
Modest Growth Expected for Home Prices
Alongside lower mortgage rates, experts predict home prices will see more gradual growth, averaging about 2.5% nationally in 2025. This is a shift from recent years’ double-digit jumps, signaling a steadier, more sustainable market.
So, what’s driving this change? With more buyers re-entering the market, demand will increase—yet so will supply, as more sellers feel comfortable listing homes. This balance helps keep prices in check. As Lance Lambert, Co-Founder of ResiClub, shares:
“Even if the average national home price forecast for 2025 is correct, it’s possible that some regional housing markets could see mild home price declines, while some markets could still see elevated appreciation.”
Market trends will vary by region, so it’s wise to rely on Carolina Coastal Group’s local expertise to understand what’s happening in your specific area, whether that’s Southport, Wilmington, or Bald Head Island.
Bottom Line
With mortgage rates easing and home prices projected to grow at a manageable pace, 2025 holds promise for both buyers and sellers. Have questions about how these trends could impact your plans? Call or text us at (910) 338-0456, and let’s create a strategy to make the most of the opportunities ahead!