Is 2025 a good time to buy a house? See what factors affect the housing market in 2025 and what that means for buyers and sellers alike.
No matter how much experience you have in real estate, buying or selling a house is a decision that takes some forethought. If it’s something you’re considering, the experts at Barker Realty recommend this first step: take a look at the current housing market and determine whether now is a good time to buy or sell.
In a recent article, Business Insider said that some of the biggest forces currently influencing the housing market include mortgage rates, low housing supply, and home prices. How will these factors change in 2025? Read these housing market trends to help you make the best decision.
Mortgage Rate Predictions
In February 2025, the average mortgage rate was 6.51%, stated Business Insider. There is hope that mortgage rates will ease up as price growth stabilizes this year, but it may not be as drastic a change as buyers would like. Their prediction is that mortgage rates may end up in the low-to-mid 6% range by the end of 2025.
High mortgage rates impact both potential buyers and sellers, discouraging both groups. However, they can sometimes keep housing prices from rising as quickly. But because of the low housing inventory trends, home prices in the U.S. have continued to increase over the past few years.
Housing Supply Predictions
In June 2024, Zillow reported that the U.S. is 4.5 million homes short of a healthy housing supply. A low housing supply tends to increase homes and rent costs.
“For housing market conditions to improve, housing supply needs to increase,” reported Business Insider. “As mortgage rates decrease, more sellers should come onto the market and list their homes, increasing the number of for-sale homes available.”
The article also stated that Fannie Mae expects the new construction housing numbers to drop in 2025 and improve in 2026, but the Mortgage Banker Association (MBA) said the numbers will start to rise this year and continue into next.
Home Price Predictions
Currently, the average home value is just over $357,000, according to Zillow, which is 2.6% higher than last year. Home prices are expected to rise 3.5% year over year in 2025 but slow down to 1.7% in 2026, according to Fannie Mae. The MBA sees this year’s rate slowing to 1.3% and remaining there in 2026.
Barker Realty Can Help
Right now is not a particularly easy time for buying or selling a house. But that doesn’t mean you can’t accomplish your goals. Barker Realty can help you navigate housing market rates, timing, and any other areas where you have questions. Contact our team today to get started and make the most of your real estate investments.
The Raleigh area is no stranger to tech companies. Research Triangle Park was built in 1959, and it has been a national technological hotspot for decades, especially when paired with the concentration of local universities.
Mansion Global’s recently published article, “A Population Boom, a Tech Boom—Raleigh, North Carolina, Shows No Sign of Slowing Down,” speaks to Raleigh’s luxury real estate expansion and its connection to the tech industry’s success.
The article explains how Raleigh’s population grew by 11.4% between 2018 to 2023, and a recent survey by United Van Line listed Raleigh in the top five inbound destinations with 20% more people moving into the city than out. These population growth trends are expected to continue.
The Downtown Raleigh Alliance wrote in their annual report that the construction of residential units (about 3,000 under construction and plans for 7,000 over the next 10 years) is shifting the downtown landscape into “dense, walkable neighborhoods” with 94% occupancy rates.
Mansion’s Global article highlights how the influx of younger, successful tech professionals, founders, executives, and entrepreneurs are an important factor in the growth.
“The luxury real estate market in Raleigh is increasingly appealing to a broader range of high-net-worth individuals, for whom proximity to downtown areas and tech hubs like RTP is critical,” said Jim Wiley, president of Beacon Street Development.
In particular, popular areas for luxury home development and redevelopment include:
the historic Hayes Barton neighborhood, where Birney Park housing development is currently under construction, with condominium prices ranging from $1.8 million to $3 million and City Homes prices ranging from $3 million to $4 million. Additional construction is planned through 2027.
the Warehouse District, with high-rise condos and upscale amenities.
North Hills and the Midtown district, with walkable, mixed-used development that’s attractive to young tech workers, according to Kruger. He also explained the increase of pricey single-family properties here. “Everything in this corridor is $2 million-plus new-construction homes, and whereas a $2 million house near downtown is 2,500 square feet on a tenth of an acre in north Raleigh, it could be 5,000 to 6,000 square feet on an acre lot,” he said.
Cary, which – home to many local tech giants and New York transplants alike – is seeing the same, tall narrow modern homes and luxury condos of Downtown Raleigh in its own downtown, said Kruger.
Demand for luxury homes is also expected to stay high. Downtown Raleigh Alliance reported that the median $427-per square-foot list price has risen 31% since 2020 in Downtown Raleigh, and new development sells out quickly.
Additionally, a luxury market report from Long & Foster Real Estate said that in July 2024, new $1 million home listings in the Durham-Raleigh-Chapel Hill triangle rose more than 44%, while sales at that price level increased 7% from a year earlier. Similarly, in July 2024, Zillow said that Raleigh’s median luxury price of $1.5 million was a 7% increase over July 2023.
As you navigate luxury real estate in Raleigh, Cary, and the Triangle area, let the team at Barker Realty be your guide. A local real estate company since 1984, we can help you find success in both your commercial and residential real estate goals. Contact us today.
Barker Realty, Inc. – serving Wake County since 1984.
It’s no secret that Wake County’s growth has exploded over the last 15 years. According to the U.S. Census Bureau, Raleigh alone grew by about one million residents between 2010 and 2020.
With that, Wake County has become an area ripe with opportunity for rental investment properties. When searching where to buy rental property, we suggest comparing factors like crime rate and safety, walkability, schools, low vacancy rates, public transportation, and signs of growth – along with financial considerations, of course.
Barker Realty has provided real estate expertise in Raleigh, Cary, and the surrounding areas for 40 years. Here’s where we think are the best places to buy rental property in Wake County today.
Top 5 Places to Buy Rental Property in Wake County:
Cary
Fuquay- Varina
Midtown, Raleigh
Garner
Cameron Park, Raleigh
Cary
USA TODAY Homefront recently named Cary the best city to rent in the county. It took first place in the overall study because of its affordability, low crime, good schools, high-paying job market, and access to recreation. It also ranked in the top five for “Best City for Renters with Pets” and “Best City for Single Renters.”
As a rental property investor, Cary is one of the more expensive areas in Wake County, but it shouldn’t stop you from considering this city. The long-term value could really pay off.
Fuquay-Varina
WRAL reported in November 2024 that Fuquay-Varina is one of the state’s fastest-growing municipalities, with the population more than doubling since 2010. With plans to grow the downtown and new elementary schools being built, property owners can expect more rental options.
Midtown, Raleigh
North Hills and Midtown have been a prime spot for real estate for many years. Endless restaurants, shops, events, as well as a variety of housing options, make the area an exciting place to live. The City of Raleigh continues to have big plans for Midtown, and a big focus for the project is walkability. You can bet there will be investment properties worth considering.
Garner
Garner has seen incredible growth that makes it an interesting option for investment property owners. World Population Review found that Garner’s population has increased 17.15% since the last census in 2024. It also states that almost 40% of Garner’s population rents instead of owning homes.
Garner will also include two stops in the upcoming Greater Triangle Commuter Rail, better connecting it to the rest of the Triangle.
Cameron Park, Raleigh
Cameron Park (also known as Forest Park) in Raleigh is one of the city’s most sought-after areas. It’s close to downtown and walkable, and is near many parks, events, and good schools. If you can snag an investment property in this area, you could reap the benefits for many years.
Other places to consider buying rental property in Raleigh include: Historic Oakwood, Mordecai, Five Points, and Glenwood South.
Barker Realty partners with our clients to bring mutual success through rental property investments. From marketing to managing, our team can help you make the most out of your investment wherever you decide to purchase in Wake County. Contact us today to learn more.
