The Ramsey Show Highlights: Housing Market Predictions For 2025
Release Date: February 3, 2025
Introduction
In the February 3, 2025 episode of The Ramsey Show Highlights, the Ramsey Network delves into the current trends and future predictions of the housing market. Hosted by the Ramsey Network, this episode features insightful discussions with experts Rachel Cruze and host Ken Coleman, among others. The conversation provides listeners with a comprehensive overview of mortgage rates, housing prices, inventory levels, and strategic advice for both buyers and sellers navigating the real estate landscape in 2025.
Mortgage Rates Trends
Rachel Cruze opens the discussion by addressing the evolving landscape of mortgage rates, highlighting a positive trend for consumers.
"We're seeing a trend that mortgage rates are going down and they're expected to keep dropping in 2025." ([00:15])
She notes that the 30-year fixed-rate mortgage dropped to 6.12% in late 2024 and anticipates continued decreases throughout 2025. However, Cruze tempers expectations by clarifying that rates are unlikely to return to the pre-pandemic lows of 2-3%.
"They're expected to keep dropping in 2025... they're not going to go back to, you know, 2 to 3% rates like they had pre-pandemic." ([00:15])
Housing Prices and Inventory
Transitioning to housing prices, Cruze observes stability in the market despite low inventory levels.
"Housing prices, they're staying pretty steady and again they might level off but with the low inventory it's kind of keeping that stable." ([00:15])
She references the Federal Home Loan Mortgage Corporation's (Freddie Mac) prediction of modest price growth in 2025, suggesting that housing values will continue to rise. Inventory saw a 29.2% increase in 2024 compared to the previous year, yet remains below pre-pandemic levels. This limited inventory contributes to stable housing prices and maintains a buyer's market in most areas.
"Inventory grew 29.2% in 2024 compared to the previous year. Now they it is still below average or pre pandemic levels and more homes are on the market to give buyers more options and still have the upper hand in most areas as demand little." ([00:15])
Buyer and Seller Advice
Ken Coleman underscores the importance of financial preparedness for potential homebuyers.
"You need to control that on your own ends... you need to stay within your budget." ([03:23])
Cruze echoes this sentiment, advising buyers not to overspend based on lender approvals and to adhere strictly to their financial parameters.
"Do not overspend when you go to the mortgage company and to get a mortgage, they're going to offer you way more than what you need. So stay within your budget." ([01:35])
For sellers, Cruze emphasizes that the current market remains favorable. Homes priced fairly are likely to sell quickly, and the consistent rise in property values presents a robust opportunity for homeowners looking to sell.
"If you are selling, this is still your market. And homes are priced fairly. If they are priced fairly, they're going to still sell pretty quickly." ([01:35])
Market Stability and Predictions
The conversation transitions to broader market stability, with both speakers agreeing that the housing market remains resilient despite previous concerns about bubbles and potential crashes.
"There's not a big bubble, you guys... it's going to stay." ([03:29])
Coleman reflects on past market fluctuations, noting that while some areas experienced overpricing and minor corrections, the overall market remains strong. They reference specific markets like Austin, Texas, which saw significant price adjustments but did not contribute to a widespread housing bubble.
"I remember being on the show, you know, two years ago... there's not a big bubble, you guys." ([03:29])
Furthermore, foreclosure rates have declined by 13% in 2024, a trend that is expected to continue into 2025, reinforcing the market's stability.
"Foreclosures declined 13% in 24 and this trend is expected to continue in 2025." ([01:35])
Strategic Investment Insights
Coleman shares personal anecdotes illustrating the benefits of investing in real estate, highlighting the appreciation of property values over time.
"When we got our first house was around 400,000 and it doubled when we, I'm like, thank you. It made me a baby steps millionaire." ([05:09])
This underscores the long-term value of homeownership as a solid investment strategy, encouraging listeners to enter the market when financially ready rather than waiting for elusive "perfect" conditions.
"You can't wait for the perfect time for the housing market. It's the perfect time when it's the perfect time for you." ([01:35])
Conclusion and Resources
As the episode wraps up, Cruze directs listeners to additional resources for real estate insights and support.
"Make sure to go to ramseysolutions.com/realestate... if you are looking to buy and sell, use one of our Ramsey trusted real estate agents." ([05:13])
She emphasizes the importance of working with trusted professionals who understand the Ramsey way of financial management, ensuring that listeners make informed and financially sound decisions in their real estate endeavors.
Finally, the episode concludes with a reminder to utilize budgeting tools to maintain financial health, reinforcing the overarching theme of responsible financial planning.
"Create your free EveryDollar budget today. The simplest way to budget for your life." ([06:41])
Key Takeaways
- Mortgage Rates: Continuing downward trend, down to 6.12% in late 2024, with expectations to keep decreasing in 2025.
- Housing Prices: Stabilizing with modest growth projected for 2025; unlikely to see drastic drops.
- Inventory Levels: Increased by 29.2% in 2024 but still below pre-pandemic levels, maintaining a balanced market.
- Foreclosures: Decreased by 13% in 2024, with low rates expected to persist.
- Buyer Advice: Stay within budget, understand personal financial limits, and leverage improving inventory.
- Seller Advice: Fairly priced homes continue to sell quickly; current market remains favorable for sellers.
- Investment Strategy: Homeownership remains a strong investment with property values appreciating steadily.
- Resources: Visit ramseysolutions.com/realestate for up-to-date market trends and trusted real estate agents.
Final Thoughts
The Ramsey Show's episode on Housing Market Predictions for 2025 offers a balanced and optimistic outlook for both current homeowners and prospective buyers. By emphasizing prudent financial planning and providing actionable insights, the episode serves as a valuable resource for navigating the complexities of the real estate market in the coming year.