Early indications suggest that consumers may feel more hopeful about prices and mortgage rates, and sees 2025 as an increasingly good time to buy, according to the new Inman -dig’s Insights Consumer Voting Show shows.
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Last year’s market proved challenging for real estate agents, to say the least.
The combination of factors including rising home prices and mortgage rates, low inventory and some homeowners sitting on the sidelines due to election year has become one of the slowest in recent years for many agents .
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But early signs suggest that consumers may feel a bit hopeful about 2025. This is a good sign for agents, especially when it comes to home prices and mortgage rates.
These findings from the latest Inman-Dig Insights Consumer Survey conducted in January also suggest that such hopeful attitudes could have a major impact on consumers’ thoughts on dealings this year. It suggests.
More affordable prices
Consumers generally feel unsure that they will accept the idea that home prices and mortgage rates will rise next year and could actually decline in the next 12 months.
Half of all 3,000 survey respondents from the latest Inman-Dig Insights Consumer Survey said average home prices will rise next year. However, that was down from 57% of respondents in April 2024. The number of respondents who believe home prices will actually fall next year has risen 19% from 17% in April.
Similar emotions have been brewed when it comes to perceptions of mortgage rates.
45% of consumer respondents believe their prices will rise over the next 12 months compared to 49% they considered last April. Meanwhile, 23% of survey respondents currently believe the average mortgage rate will fall, up slightly from 22% in April.
Time to buy?
With the New Year in hand, consumers continue to be warmed to the idea of opening their wallets to buy a home. The share of consumer respondents who believe that now is the time to buy has increased significantly in recent months.
40% of consumers think it’s a “good time to buy” from 27% who felt that way in April. On the other side of the transaction, consumers who believe it is a “good time to sell” share was fairly consistent as of January’s Inman-dig Insights consumer survey results, stabilizing at 65%. It’s there.
Not only does consumers feel it’s a good time to buy, but almost half of consumer respondents say it’s possible to do that today as well.
46% of consumers surveyed in January said households were in financial condition enough to buy a home at today’s prices and mortgage rates. 39% said they were not in the financial position to buy today, while 16% said they weren’t sure they were financially safe enough to buy.
Looking forward to next year, I feel that it’s at least good that more consumers are at least in the position to buy a home.
48% of consumers believe they are financially safe enough to buy a home 12 months from now. 24% are not sure if they are in a position to buy real estate in a year. 27% believe they can’t buy a home in 12 months. This is a huge drop from 39% who said they couldn’t buy a house today.
When consumers conducted the survey on January 7-8, the markets and the economy were still overcoming the stability that concluded their final presidential term. Today, the landscape looks a little different due to factors such as President Trump’s threatening tariffs in Canada, Mexico and China.
Still, there are other early signs of the market that prefers home buyers. Nearly a quarter of home sellers cut their asking prices in January, according to a report by Zillow, a new high in January since 2018.
The mortgage rate fell slightly last week to 6.93% as the Trump administration revealed that the recent executive order would not hinder the Federal Reserve’s decision on moving interest rates.
In other words, more and more consumers are increasingly believing there is a way to trade in this market. And they need agents to guide them along the way.
About Inman-Dig Insights Consumer Survey
The Inman-Dig Insights Consumer Survey took place between January 7th and January 8th to assess the opinions and behaviors of Americans related to home buying.
The study sampled a diverse group of 3,000 American adults employed full-time or part-time, ranging from age 24 to 65. Participants were selected to create a broadly representative breakdown by age, gender and region.
Statistical rigor is maintained throughout the study, and results should primarily represent the attitudes held by US adults with full-time or part-time jobs. Both Inman and DIG insights are majority owned by Toronto-based Beringer Capital.
Email Lillian Dickerson
