2025 Housing Market...My Thoughts

There is pent up demand to buy a home, however it is still going to be difficult in 2025. With the decline in local inventory, shopping for a home is difficult and stressful. The more moderate price homes, that many first-time homebuyers desire, are very limited and don't last on the market long.

The higher price homes in our market are remaining on the market longer. The values that many home sellers experienced with the COVID time line, are no longer. Sellers who have elected not to adjust their home value to the current market conditions are seeing their home sit there stale. A very strong indicator why a home will not sale in any market is simply because it is priced to high.

Many homebuyers will still be priced out, with home prices still high, limited inventory, and mortgage rates still remaining around 7%.

Sadly, the inventory of homes for those first-time homebuyers will still be limited and will leave many homebuyers discouraged.

Mortgage rates are likely to remain in that 6% range or higher. High mortgage rates are the second part of the equation that will keep homebuying unaffordable for many.

What the market is needing are those more moderate price homes, not just for the first time buyer, but for older buyers who find themselves priced out of the higher price homes that show up on the market.

I think homeowners are thinking about staying in their homes longer, if not forever. Just not comfortable to make a move in this market, where there is so much turmoil and uncertainty. Moving up to that dream home, is costly and moving down to the smaller home is limited. Many will just stay in their present home.

Ok, these are just my thoughts and there is no crystal ball so only time will tell where the housing market will go in 2025. I know this, I am thankful for the building that is going on in our community. Take a drive around Colby, and see the duplex units being built by Jimmy Johns, drive down Walking Trail Lane and see the new homes being built. Our community is trying to address the issue locally and there is even funding through the Kansas Housing Cooperative Loan Program, offering financial assistance to build a single family home. Lets remain positive and continue believing in the American Dream...OWNING A HOME.