A September 17 report from Norada predicted a significant rise in home sales for 2025, with estimates suggesting that 5.4 million homes could be sold, marking a notable increase from the 2024 projections. 

This growth is expected to be driven by more affordable mortgage rates and improved consumer confidence following the 2024 U.S. presidential election.

Real estate expert and broker Ryan Serhant echoed this optimism, forecasting a strong market recovery as mortgage rates decline. In an interview with Fox Business, Serhant emphasized that despite current buyer hesitation, the fundamentals for a rebound are in place. 

“Inventory is up. Interest rates are at 20-month lows, but buyers are still sitting on the sidelines,” said Serhant, Founder of SERHANT. He believes that as mortgage rates drop further and post-election clarity emerges, buyer activity will surge. “People are waiting to see what happens in November, and that will take us into a roaring 2025,” he added.

While Serhant points to a positive outlook, he acknowledges current market challenges, such as the "lock-in effect," where homeowners hesitate to sell due to their low mortgage rates. He estimated that only 2.5% of U.S. homes will be sold in 2024, with 90% of homeowners having locked-in rates below 5%.

Although some experts remain cautious about immediate recovery, alternative investment opportunities, including real estate investment trusts (REITs) and property-related equities, are drawing investor interest. These strategies could offer growth potential amid current market uncertainty.

Business Insider forecasts indicate that mortgage rates could drop to around 5.7% to 5.8% by the end of 2025. This decline is expected to boost buyer activity, helping more potential homeowners enter the market.

According to a Norada report, it's predicted that home sales will rise significantly in 2025, with estimates suggesting around 5.4 million homes will be sold, up from projections for 2024. This increase will likely be driven by more affordable mortgage rates and improved consumer confidence.