July 8, 2024

This paid piece is sponsored by Amy Stockberger Real Estate.

By Amy Stockberger

With all the headlines circulating about home prices and mortgage rates, you may be asking yourself if it still makes sense to buy a home right now or if it’s better to keep renting. Here’s information that could help put your mind at ease by showing that investing in a home is still a powerful decision.

According to the experts at Gallup, real estate has been crowned the top long-term investment for a whopping 12 years in a row. It consistently has beat other investment types like gold, stocks and bonds. This enduring trend speaks volumes about the stability and wealth-building potential of real estate.

Lately, there has been a lot of buzz about what’s next for home prices, especially with 2024 shifting gears in some markets. Here in Sioux Falls, we saw the average home price go up 4.9 percent during the first six months of 2024. But what about the future of the market? No one has a crystal ball, but experts have released early predictions for home prices in 2025. Let’s dive in.

The big picture: National home price predictions for 2025

It’s hard to believe 2024 is halfway over! Looking ahead to 2025, experts predict a slowdown in the national housing market’s breakneck pace. That doesn’t mean prices are plummeting. In fact, the average forecast anticipates a 2.5 percent increase in national home prices for next year. That would mark the 13th consecutive year of growth.

Home price projections vary among major groups, with predictions ranging from an increase of 0.3 percent to 4.4 percent:

• Goldman Sachs: 4.4 percent growth in home prices in 2025
• Wells Fargo: 4.3 percent
• Mortgage Bankers Association: 3.3 percent
• Morgan Stanley: 3 percent
• Zelman & Associates: 2.3 percent
• Fannie Mae: 1.5 percent
• Freddie Mac: 0.5 percent
• Moody’s Analytics: 0.3 percent

It’s not a one-size-fits-all picture

While national trends provide a useful overview, real estate is inherently local. Sioux Falls might not follow the national average. Local factors such as the labor market, inventory levels and specific regional economic conditions will play a significant role in shaping the housing market here. For instance, areas with strong job growth and limited housing supply may continue to see higher price appreciation, while other regions may experience more modest gains or even slight declines.

Some of the key factors I watch every month include:

• Inventory levels
• Interest rates
• Average days on the market
• Median sale prices
• List-to-sale price ratio

If you want to be updated on local market data, sign up for our newsletter here. Navigating the real estate market in Sioux Falls requires a blend of national insights and local expertise. By understanding the broader trends and keeping an eye on local market dynamics, you can make informed decisions whether you’re buying or selling a home.

Bottom line

When it comes to building wealth that stands the test of time, real estate is the name of the game. If you’re ready to start on your own journey toward homeownership, let’s connect today.

At Amy Stockberger Real Estate, our Lifetime Home Support™ model ensures that you have a system and strategy for each stage of the homebuying, selling and investing process.

We have a proven strategy for each stage, starting with the first-time homebuyer with our Lease Buyout program all the way to the last-time seller moving into senior care, with our Golden Age Guided Move program. Whether you’re leveraging our VIP Club benefits, accessing our moving trucks and supplies or tapping into our Home Support Team Partners for all your homeownership needs, preferential treatment and pricing, we’re here to elevate your real estate experience. Stay tuned for more updates, and feel free to reach out with any questions or for personalized advice on your real estate journey.

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