Get ready to navigate the 2025 housing market  

Wayne Porter 

A new year is typically greeted with healthy amounts of relief that the previous year’s rough patches are history and better things on the horizon. Given current conditions, 2025 comes down on the side of better things to come.  

WAYNE PORTER
NETAR President

The key takeaways from the local year in review and new year’s outlook is local homeowners will continue to benefit from increased values and the market will be friendlier to buyers. That doesn’t mean the region is on the cusp of a buyers’ market. While inventory has slowly increased, creating more balanced conditions in some price ranges, the big picture is still rooted in a sellers’ market. 

We have a couple of weeks before the fledgling 2025 market takes shape. Meanwhile, here are a few basics to help guide consumers – especially buyers – chart a course for the evolving housing market. 

IS IT A GOOD TIME TO BUY OR SELL? 

The best answer to this often asked question is “yes to both if…” Reality dictates that whether it’s a good time to buy or sell depends on the financial goals, resources, and needs of the individual.  

While sellers may not experience home prices increasing as quickly as they have in the past couple of years, barring something unseen, there’s nothing that points to a decline. Currently, more than half of the mortgaged properties in the region are equity rich and, according to the National Association of Realtors® (NAR), the typical homeowner has accumulated $147,000 in housing value in the last five years.  

A more buyer-friendly market doesn’t mean it won’t be competitive even as sellers realize they may have to be more flexible in the new year.  

YOU DO NOT NEED A 20% DOWN PAYMENT 

Down payments vary. Twenty percent is cited because it’s the cutoff for private mortgage insurance (PMI) which adds to the monthly mortgage payment. There are programs to help reduce or eliminate the down payment. Spend some time researching what state and federal programs offer that help. 

BUYING A HOME DOES NOT HAVE TO EQUAL HEAVY DEBT 

If you focus on the debt total, buying a home it can be overwhelming. But not all debt is bad. Make sure you can afford your monthly payment and that it’s not putting you in a “house-poor” situation.  

Experts suggest that the ideal share of an individual’s or family’s income spent on housing is 25% to 30%. Take into consideration all your monthly expenses, not just the ones you report to the lender on the application. In the months you have a little extra money, you can add it to your mortgage payment and cut the life of the mortgage significantly over time.  

WORK WITH A PRO 

Study after study shows sellers who use a Realtor® consistently get a better price than those who go it alone. Buyers also reap rewards. That may seem like a contradiction in an era when technology offers advanced communications and marketing abilities. But it’s not, and here’s why. 

The folks at NAR have compiled a list of 179 things Realtors® do for their clients than make them worth every penny of their compensations. Just for good measure, the list has an additional 105 things that are at play for almost every transaction. But the list is more than just an explanation of a Realtor’s® worth. It’s an insider look at what’s involved in the often-over-simplified process of a real estate transaction. A copy can be found on the NETAR Website at https://netar.us/why-realtors-are-worth-every-penny-of-their-compensation/  

Use of Realtors® is at an all-time high because consumers see the advantage and need to have a pro in their corner. At the same time, the Realtor®-client relationship continues evolving. This makes sense because it’s not like most other business relationships. In many ways, it’s more complicated and very personal. That’s why it’s important to shop around and find an agent who is a good match. And consumers shouldn’t be timid about interviewing several agents and checking their references. They should also be candid about their expectations and be committed to take the advice of their agent. 

Client-Realtor® communication is a major factor. Are you a face-to-face communicator, or do you prefer email or texts? Do you want your Realtor® to guide you through the process? Or you going to be a more hands-on client? These are the type of considerations that should be part of the agent screening process. 

The best Realtor®-client partnerships happen when the personal chemistry is compatible. Buyers and sellers should step back and test the chemistry issue before making a final decision. Is the prospective agent someone they want to spend time with? Are you comfortable sharing personal and financial information with them? If there are doubts, keep looking. 

In many cases, a client, and their Realtor® partner will spend a lot of time together before the deal is completed. There will be some hitches. Things will go wrong, and even the best plans get changed. Expect some extra stress. Choosing the right agent will take the edge off the process and make it easier and more successful for everyone concerned. 

NETAR is the voice for real estate in Northeast Tennessee. It is the largest trade association in the Northeast Tennessee, Southwest Virginia region, representing over 1,800+ members and 100+ business partners involved in all aspects of the residential and commercial real estate industries. Weekly market reports and information for both consumers and members are available on the NETAR website at https://netar.us