Is 2025 the Next 2008? Why I'm Betting on a Strong Real Estate Market

The whispers are getting louder. With mortgage rates stubbornly high and affordability a major concern, many are predicting a 2008-style crash. But I'm here to tell you: don't believe the hype.

Yes, the market is facing headwinds. According to Bankrate , the average 30-year mortgage rate is hovering around 6.88% as of October 2024. This, coupled with still-high home prices, is undoubtedly squeezing buyers. ?

However, the fundamentals are different this time around. Unlike 2008, we're not drowning in a sea of overvalued properties fueled by reckless lending. Inventory remains tight, with the National Association of REALTORS? (NAR) reporting a 4.3-month supply in September 2024. This indicates a continued seller's market in many areas. ?

Here's why I'm optimistic about 2025:

• Pent-up Demand: Despite affordability challenges, the desire for homeownership remains strong. Millennials are entering their prime homebuying years, and immigration is boosting demand. ?
• Economic Resilience: While recession fears linger, the US economy continues to show signs of strength. Unemployment remains low, and consumer spending is robust. ?
• Potential for Rate Adjustments: While I don't anticipate a dramatic drop, I predict mortgage rates will gradually decline in 2025, improving affordability.

This doesn't mean we're in for smooth sailing. Some markets may experience price corrections, and affordability will remain a challenge. But a full-blown crash? I'm not convinced.

Now, I want to hear from YOU!

• Industry professionals: What trends are you seeing in your market? Do you agree or disagree with my predictions?
• Buyers and sellers: How are you navigating the current market? What are your expectations for the coming months?

Let's have an open and honest conversation about the future of real estate. Please share your thoughts, challenge the status quo, and let's learn from each other!