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025 may bring more homes to the market, but affordability concerns remain. Many people will continue to be locked out of homeownership due to high prices. Here's what experts predict for mortgage rates, new builds, and moves next year:

    Mortgage rates are expected to stay above 6% in 2025, with some economists forecasting rates near 7%. This means it will still be challenging for first-time buyers to enter the housing market. Lower mortgage rates could even exacerbate the country's housing crunch by attracting more buyers and increasing competition.

    More single-family new builds are on the horizon, driven by a shortage of homes and profitable homebuilders. However, the "lock-in" effect that has discouraged homeowners from moving will lessen next year, but not disappear. By 2025, only 75% of homeowners with a mortgage are expected to have rates under 6%, down from 84% in mid-2024.

    The luxury housing market is likely to continue thriving in 2025, as high-net-worth individuals view property as a valuable and resilient asset. Meanwhile, renters will face increased rent hikes due to postponed house purchases and limited new apartment construction.

    Realtors are also watching the Justice Department's potential involvement in real estate industry practices, following a recent settlement that was approved despite DOJ objections.