Redfin (RDFN) chief economist Daryl Fairweather joins Wealth to discuss the evolving housing market dynamics headed into 2025.

"We think the market will be a bit better next year," Fairweather states, highlighting increased market participation with more individuals listing, selling, and buying homes. However, she cautions that mortgage rates still remain "quite high," tempering overall market enthusiasm.

Fairweather suggests that if mortgage rates were to cool to around 5%, it could trigger "a large burst in demand," potentially sparking "more bidding wars" and "price growth." Interestingly, the current rate stability has created a sense of urgency among market participants. "There's no reason to wait anymore," she notes, which is driving more homeowners to list properties and buyers to enter the market.

Looking ahead to 2025, Fairweather predicts a significant shift, expecting it to be "a renter's market" driven by new construction, numerous vacant units, and an expanding rental supply.

To watch more expert insights and analysis on the latest market action, check out more Wealth here.

This post was written by Angel Smith