M
auricio Umansky, founder and CEO of The Agency, predicts a resurgence in home listings and sales in 2025 after years of stagnation in the US real estate market. Despite lingering uncertainties about interest rates, Umansky believes we're on the cusp of significant movement. As the head of a global brokerage with over 130 offices across 12 countries, Umansky's insights are informed by his firm's fifth annual Red Paper, a comprehensive wealth report that analyzes the luxury real estate market.

    Umansky attributes the current state of the market to the pandemic's impact on residential and commercial real estate. Typically, low transactions would lead to price corrections, but the lack of supply has kept prices relatively stable. Sellers who locked in record-low mortgage rates during the pandemic have been hesitant to sell, limiting options for buyers.

    However, high interest rates have also affected high-net-worth transactions, with 66.67% of agents reporting that interest rates directly impact the high-end market. Umansky notes that even wealthy clients often choose to borrow against their real estate portfolios to keep capital working and generating returns.

    In 2025, The Agency expects an increase in supply and lower interest rates, leading to a surge in transaction volume. Inventory has already climbed 66.67% from January to November compared to the previous year, and increased economic confidence is expected to drive more people into the market. With the election cycle over, more people will be willing to move, and prices in the luxury real estate market are expected to drop, particularly in terms of final sale prices.

    As a buyer's market takes hold, sellers need to listen to the market and understand their home's current value. If they're not willing to sell at a specific price, Umansky advises taking their homes off the market to avoid accumulating days on market and becoming stale. "If you're not selling, you've got to look at your price," he said.