2025 Forecast Special | Driving It Home with ABoR's Housing Economist

In this episode of Driving It Home, Dr. Clare Knapp and Kelea Youngblood kick off 2025 by examining the Austin housing market and forecasting the year ahead. Dr. Knapp predicts a stable market this year, mirroring 2024's conditions, with steady home prices and inventory levels. Although the market may feel stagnant to some, stability allows buyers and sellers to plan confidently. Dr. Knapp emphasizes that while the year-over-year numbers may not change drastically, home prices remain significantly higher compared to pre-2019 levels, reflecting strong appreciation.   Mortgage rates are expected to stay relatively stable, ranging between 6% and 7%, as the Federal Reserve cautiously approaches rate cuts. Dr. Knapp outlines how potential policy shifts under the new presidential administration, including tariffs, could affect the housing market by influencing inflation and construction costs. While these uncertainties could impact affordability and pricing strategies, she believes the general housing landscape in 2025 will remain steady.   For buyers, increased inventory offers greater options and negotiation power. Sellers are encouraged to price realistically, leveraging equity gains while acknowledging shifts in purchasing power. They also highlight new opportunities for members, such as expanded MLS data access and preview upcoming research on market trends and demographics in the Austin-San Antonio corridor. The episode concludes with a reminder to attend the Jan. 30 Kick-Off 2025 event to prep for the new year and start off strong!   Links Mentioned: Buy Rent Index: https://www.unlockmls.com/research Market Data Labs: https://www.unlockmls.com/classes-and-events?location&categories&participants.name&format×&searchText=lab&page=1 Kick-Off 2025 | Jan 30 | https://www.unlockmls.com/event/%2Fkickoff2025   Download an episode transcript: https://assets.ctfassets.net/pu0snv8rn9fa/65UZWYq8dLqtbNAvn2yzmZ/936bba737514eede66e8c235879c61e1/DIH-1-7-25.pdf   Listen On: Apple: https://podcasts.apple.com/us/podcast/driving-it-home-with-abors-housing-economist/id1714289732 YouTube: https://www.youtube.com/playlist?list=PLzH_caxJ3VPq5iExWilqZOahnREgSFgqC  Connect with us on socials: https://www.unlockmls.com/socials Connect with Dr. Clare Knapp on LinkedIn: https://www.linkedin.com/in/clare-losey    Have feedback? Email us at [email protected].