Housing Market 2025 Forecast: Predicting the Real Estate Year Ahead
Episode Description
In an interview on Wharton Business Daily, Susan Wachter – Albert Sussman Professor of Real Estate at the Wharton School – recaps what took place in 2024 and offers her 2025 housing market forecast.
Topics and questions covered: 00:00 - Introductions 01:13 - Questions around the commercial vs. residential markets 01:56 - How to improve the residential market, based on mortgage rates 03:56 - Assessing the impact of new home construction 07:08 - Concerns around the commercial market and remote work 10:38 - Multi-family vs. single-family homes 11:31 - How interest rates could decrease and the impact of inflation
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Brief Summary
Susan Wachter discusses the real estate market's challenges and potential recovery as 2024 ends and 2025 begins.
Key points
- Surviving the Market. Susan Wachter discusses the surprising GNP growth and its impact on real estate.
- The Lock-In Effect. Homeowners are hesitant to move due to low mortgage rates, affecting supply.
- Commercial Real Estate Recovery. Wachter notes that the bad news in commercial real estate may be bottoming out.
- Future of Mortgage Rates. Wachter speculates on potential future mortgage rates and economic conditions.
- Navigating Known Unknowns. Wachter expresses uncertainty about the future of the real estate market.
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Episode highlights
- Surviving the MarketSusan Wachter discusses the surprising GNP growth and its impact on real estate.“Just. We've just survived.”0:36Dec 27, 2024
- The Lock-In EffectHomeowners are hesitant to move due to low mortgage rates, affecting supply.“Homeowners are staying put.”2:35Dec 27, 2024
- Commercial Real Estate RecoveryWachter notes that the bad news in commercial real estate may be bottoming out.“The deal flow, which has been zero, is coming back.”7:29Dec 27, 2024
- Future of Mortgage RatesWachter speculates on potential future mortgage rates and economic conditions.“If all goes well, we could be at high fives at the end of 2025.”12:05Dec 27, 2024





