As we close out 2024 and look ahead to 2025, Brian Buffini’s recent Bold Predictions offer a roadmap for what’s next in the real estate market. The Geiger Stern Team has taken a closer look at these insights to understand how they will shape the local market in Westchester County. Here’s what you need to know.
2024 Recap: The Year the Market Began to Thaw
The 2024 real estate market was anything but typical. A combination of high mortgage rates, elevated home prices, and low inventory froze the market for much of the year. However, as more inventory began to trickle in toward the latter half of the year, conditions started to improve. Older and wealthier demographics dominated transactions, with all-cash offers becoming more common and the average age of buyers and sellers on the rise.
For first-time buyers, 2024 was particularly challenging. Many younger buyers postponed their plans, feeling the cost of homeownership was simply too steep. This group represents significant pent-up demand, which is likely to drive activity in 2025. Buffini’s predictions for 2025 paint a picture of a market in transition. Here are the key takeaways and how they could influence Westchester County.
1. More Inventory = More Balance
The long-awaited influx of inventory is expected to balance out the market, creating more opportunities for buyers and sellers alike. In Westchester County, this could mean a shift from the extreme seller’s market of recent years toward a more neutral playing field. For local buyers who’ve struggled with bidding wars, this is a welcome change.
2. Interest Rates Normalize
The “new normal” for mortgage rates will hover around 6%, with predictions suggesting a range between 5.8% and 6.2%. While this is higher than the historic lows seen in previous years, it’s manageable for many buyers. Westchester’s well-established reputation for high-value homes could benefit from a more stable rate environment, attracting younger demographics who are ready to enter the market.
3. Pent-Up Demand from Younger Buyers
2025 is set to see a resurgence of younger buyers, many of whom postponed their home-buying plans in 2024. In Westchester County, this could translate to increased activity in entry-level and mid-tier properties. The influx of millennial and Gen Z buyers will inject fresh energy into the market, with life-changing events like marriage and family expansion prompting many to finally take the plunge.
4. Life-Changing Events Drive Moves
Buffini highlights how major life milestones, such as job changes, relocations, and family growth, will continue to drive real estate decisions. Westchester County, with its excellent schools, commuter-friendly locations, and family-oriented neighborhoods, is perfectly positioned to benefit from this trend.
5. Continued Gap Between “Haves” and “Have-Nots”
One sobering prediction is the growing disparity between those who can afford to buy and those who can’t. With an older, wealthier demographic still active in the market, competition for high-value properties in Westchester’s most sought-after areas will likely remain fierce. However, increased inventory may provide more opportunities for those currently priced out.
A Positive Outlook: No Recession and Moderate Growth
The overall outlook for 2025 is positive, with business confidence high and job growth projected. Buffini predicts a 10% increase in home sales nationwide, driven by improved inventory levels and steady buyer demand. Westchester County, with its strong local economy and desirable location, is poised to reflect these trends.
Takeaways for Westchester County Buyers and Sellers
For buyers, 2025 offers an opportunity to finally make their move as more listings hit the market and interest rates stabilize. Younger buyers in particular should prepare to act quickly, as pent-up demand could make competition fierce in popular neighborhoods.
For sellers, life-changing events and the influx of younger buyers mean it’s an excellent time to list. While the market is becoming more balanced, demand remains strong, particularly for well-priced properties in desirable areas.
Preparing for 2025
Brian Buffini’s Bold Predictions offers a hopeful vision for the 2025 real estate market. In Westchester County, these changes represent a chance for both buyers and sellers to achieve their goals. Whether you’re planning to buy your first home, move to a larger property, or downsize, the Geiger Stern Team is here to guide you every step of the way. Reach out to us so we can help make 2025 your year in real estate!
