After navigating through challenging market conditions in recent years, Staten Island homeowners and buyers can look forward to more promising developments in 2025. Whether you are looking at Luxury condos in Grasmere or Colonial Style homes in Tottenville, we are going to let you know the future real estate of 2025. At Robert DeFalco Realty, we're excited to share the latest market forecasts from the National Association of REALTORS® (NAR), which point to positive changes ahead.

A Return to Growth

The National Association of REALTORS'® Chief Economist Lawrence Yun has released an encouraging forecast for 2025 and beyond. According to his projections, we can expect to see existing home sales rise by 9% in 2025, with new home sales jumping even higher at 11%. This uptick in activity suggests a significant improvement from the slower markets of 2023 and 2024.

What's Driving the Recovery?

Several key factors are contributing to this positive outlook:

First, the job market remains robust, with economists predicting nearly 2 million new jobs in 2025. This employment growth typically translates into increased housing demand as more people gain the financial stability to pursue homeownership.

Additionally, recent changes in the political landscape could benefit the housing market. Historical data shows that regardless of election outcomes, housing markets often see a boost in activity following presidential elections as uncertainty diminishes and people feel more confident making long-term decisions.

Mortgage Rates and Home Prices

For those concerned about mortgage rates, there's cautiously optimistic news. The Federal Reserve has already implemented two rate cuts, with four more anticipated in the coming year. While this won't bring back the ultra-low rates of recent years, we expect to see rates stabilize in a more manageable range.

As for home prices, NAR forecasts a modest but steady appreciation:

2025 median home price is projected to reach $410,700, representing a 2% increase from 2024
This moderate price growth suggests a more balanced market ahead

Changing Buyer Demographics

One of the most interesting developments we're seeing is the evolution of who's buying homes. NAR's latest data reveals several notable trends:

All-cash purchases have reached record levels, now accounting for 26% of home sales
First-time buyers are typically older than ever before, with a median age of 38
Multi-generational households have hit an all-time high of 17%, often combining resources to achieve homeownership
Single women continue to be a significant force in the market, representing 24% of home purchases

What This Means for Staten Island

For our local market, these national trends suggest several opportunities:

For Sellers: The projected increase in sales volume means more potential buyers for your property. With inventory levels still relatively low, well-priced homes continue to attract serious interest.

For Buyers: The stabilizing mortgage rates and more moderate price appreciation create a more predictable environment for planning your purchase. The trend toward multi-generational buying might open new possibilities for families looking to combine resources.

Making Your Move in 2025

Whether you're thinking about buying or selling, timing remains crucial. The positive forecasts suggest that early 2025 could present good opportunities before the traditional spring rush begins.

At Robert DeFalco Realty, we understand that national trends affect our local market differently. Our experienced team can help you interpret these broader patterns in the context of your specific Staten Island neighborhood and personal circumstances.

Looking for Guidance?

These market changes bring both opportunities and challenges. Our team at Robert DeFalco Realty is here to help you navigate them successfully. Contact us today for a personalized consultation to discuss how these market trends might affect your real estate goals.

Note: Market forecasts and statistics are based on current National Association of REALTORS® data and are subject to change. For the most up-to-date information about your specific situation, please contact our office directly.

Posted by Robert DeFalco on February 7th, 2025