2025 Housing Market Update
Source: Joe Dawson
The U.S. housing market is experiencing a unique set of conditions, offering both challenges and opportunities for homeowners and prospective buyers. With over $35 trillion in equity, homeowners now hold more wealth in their properties than ever before—surpassing even the market value of all the stocks traded on the New York Stock Exchange. However, with a significant housing shortage of 3–5 million homes, inventory remains low, and home prices are likely to stay elevated. At the same time, evolving lending guidelines provide new opportunities for financing. This article explores how to protect and leverage your home equity, navigate the current housing market, and make the most of available options.
Homeowner's Equity Is At A Record High Level
Homeowners in America now have over $35 TRILLION of equity in their homes. To put this in perspective, this is more than the entire market capitalization of all the stocks that trade on the New York Stock Exchange, which have a combined value of $30 Trillion. Contact me to explore ways of protecting your equity and using it in a way that benefits your overall financial situation.
House Prices And Interest Rates May Remain Elevated
Housing inventory is still below historical averages due to the bona fide housing shortage we have in the US. Freddie Mac and the National Association of Realtors estimate that we're still short between 3 - 5 million homes in the US. This means house prices are likely to remain elevated because demand for housing remains higher than the supply of housing. Meanwhile, strong economic data, persistent inflation, and soaring government budget deficits caused the bond market to reverse its bets on future Fed rate cuts. Bond traders have reversed the previous bets they had in place, driving up bond yields and mortgage rates.
You May Have More Options Than You Think
Lending guidelines and loan programs are constantly evolving to keep up with the changing market. This means you may have financing options today that weren't available the last time you considered a home purchase, home sale, or mortgage refinance. Contact me to explore the home buying, selling, or refinancing options you may have available in today's market environment.
Homeowners in America now have over $35 TRILLION of equity in their homes. To put this in perspective, this is more than the entire market capitalization of all the stocks that trade on the New York Stock Exchange, which have a combined value of $30 Trillion. Contact me to explore ways of protecting your equity and using it in a way that benefits your overall financial situation.
Bottom Line
Homeownership equity has reached a historic high, presenting homeowners with significant financial opportunities. However, the housing market remains challenging with low inventory and high demand, which could keep prices elevated. Rising mortgage rates also continue to impact affordability. Despite these factors, evolving lending guidelines and loan programs provide more options than ever for potential buyers, sellers, and those looking to refinance. It's a good time to explore your options and make informed decisions that align with your financial goals.
We're here to guide you through every step of the process—whether you're buying, selling, or refinancing. Contact me today to explore your options and make the best decision for your future.
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Joe Dawson | Loan Officer
NMLS: 917066
DIRECT: 301-656-4378
MOBILE: 703-376-1967
EMAIL: jdawson@firsthome.com
8401 Connecticut Avenue Suite 1100
Chevy Chase, MD 20815
