2025 Housing Inventory Outlook

2025 Housing Inventory Outlook

The U.S. housing market in 2025 is forecasted to continue its recovery with an 11.7% increase in inventory compared to 2024. October 2024 set the stage with the highest active home count since December 2019, suggesting a favorable trend for buyers.

In 2025, Atlanta's housing market is anticipated to experience moderate growth and increased stability. Key predictions include:

  • Home Prices: Experts forecast continued appreciation at a normalized rate of approximately 3-6% annually, indicating a steady yet sustainable rise in property values.
  • Market Activity: A surge in real estate transactions is expected, particularly in early 2025, as buyers and sellers re-engage with the market.
  • Affordability Challenges: Despite growth, affordability remains a concern. Some analysts suggest that home prices may need to decrease by up to 28% to restore healthy affordability levels, though such a significant correction is considered unlikely.

Overall, while Atlanta's housing market in 2025 is poised for steady growth, prospective buyers and investors should remain mindful of affordability issues and regional market dynamics.

Mortgage rate lock-in, influenced by elevated interest rates, will initially suppress inventory gains in early 2025. However, by spring, a combination of new listings and unsold inventory from winter is expected to boost availability.

Although nationally inventory in 2025 will remain 23% below the 2017–2019 norm, this marks significant progress from the 40% deficit in 2023. Life changes and declining low-rate mortgages contribute to this gradual shift. By year-end, mortgages with sub-6% rates are predicted to decrease from 84% to approximately 75%.

In the Atlanta market, the number of homes for sale in December 2024 was 42% above the 2023 number and pending sales were up 13.2% year over year. It is important to keep in mind real estate is very local and even within Atlanta there are many neighborhoods that have not experienced these national or city numbers.

The trend points to a slowly stabilizing market where time continues to mitigate the effects of past constraints.

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