2025 Predictions – just ask me the future

Recently I posted a video on 2025 predictions.  I clearly state in that video: I have not yet been granted clairvoyance to predict the future. That is a vague Star Wars reference- for you fans out there.

I cannot tell you what the future holds in real estate due to the overwhelming number of influences on the market.  Interest rates, the stock market, elections, school ratings, geographic details, town ratings, job growth, mortgage regulations.  Yeah – that’s just me saying a few factors that affect real estate.

Here are the things I CAN tell you:

• Real estate is typically the largest investment someone owns. That’s good because historically real estate appreciates at 4% per year.
• In Scotch Plains, NJ, residential property values have increased 64% since 2019. That’s 12.8% per year.
• What’s driving that? Simple economics – high demand, low supply (low number of houses available for sale).

Back 10 years ago, any typical day would have 100 houses for sale in Scotch Plains. For the past six months, the average number of houses for sale  is 3.5 houses in Fanwood and 19 houses in Scotch Plains.

• Since 1971, Freddie Mac has been tracking mortgage interest rates. The average mortgage interest rate during that period is 7.76%.

For 2024, the interest rate fluctuated between 6.5- 7%. Still lower than the historic average.

Experts predict ( like how I did that?  I said “experts,” not me.)  that over 2025, interest rates will come down.

What should you do if you are buying or selling? My best advice is to examine your needs. Do you need more space? Backyard space? Shorter commuting times?  Is the house too much for you? Is it too big?

Get focused on your needs and wants and your financial goals.  Sit down with me and I can help you make a smart move.