Nationally
The National Association of REALTORS stated existing-home sales in 2024 fell to their lowest level since 1995, primarily due to elevated mortgage rates and limited inventory. However, forecasts for 2025 suggest a modest recovery, with existing home sales projected to rise by 9% year-over-year and new home sales anticipated to increase by 11%.
While new housing construction is a positive step toward easing the inventory shortage, the market is unlikely to loosen up dramatically in 2025, especially in high-demand areas. Factors like population growth, affordability, and interest rates will heavily influence how much relief the new supply can provide.
The new housing developments across North Carolina could help alleviate some of the tightness in the market, but whether the market truly "loosens up" will depend on several factors.
North Carolina remains one of the fastest-growing states, with people relocating due to job opportunities, lower costs of living, and quality of life. High population growth, especially in urban hubs, could keep demand elevated, even with new housing coming online.
Housing affordability in 2025 will also depend on mortgage rates. Elevated rates can reduce buying power, possibly slowing demand. However, if rates stabilize or drop, demand could rebound, keeping the market competitive even with more inventory.