Answers to the Top 5 Questions Everyone’s Asking This Holiday Season

’Tis the season for holiday parties, friendly gatherings, family get togethers — and inevitably, questions about the housing market. Don’t get caught scrambling for answers.  

Every interaction is an opportunity to prove your value. And what may seem like small talk now could turn into big business in the new year. So make sure you’re prepared to show, not just tell, those in your sphere that you’re the expert they can turn to and trust.  

Cut through the noise and lay the groundwork for a better 2025 by having answers to the top 5 questions everyone will ask you this holiday season.  

When Will Mortgage Rates Come Down? 

Unfortunately, when it comes to mortgage rates, there’s no crystal ball. But there are key factors that will influence which way rates will go from here: the labor market, inflation, and the geopolitical landscape – just to name a few.  

While mortgage rates have been volatile over the past several months, as of right now, expert forecasts show mortgage rates should gradually decline in 2025 — but it all depends on how the economy performs.

What Will It Take for Prices To Come Down? 

In short, they won’t. The fact of the matter is, builders aren’t overbuilding — they're still trying to catch up after 15 years of underbuilding. That means we don’t have a surplus of new homes for sale. At the same time, even though the supply of existing homes for sale is growing, it’s still below the levels the market has seen in a more normal year.  

Those two factors combined are why all 10 of the experts we follow are forecasting prices will rise in the year ahead — they’ll just climb at a slower rate as inventory continues to grow. 

The good news? You aren’t going to see the skyrocketing price appreciation that occurred over the past few years. Prices will continue to increase but at a healthier pace.

Will I Be Able To Find a Home Before I Move?

You may be hearing a lot of frustration from buyers about low inventory right now. It’s true that inventory hasn't hit a typical, normal level in years. But inventory has grown substantially — and steadily — over the last year, giving buyers more options. In October, there were 29.2% more homes available than at the same time last year.  

Even better, you’ll have figures to show what’s happening in the market. Of course, it’s important to layer on what’s happening locally, too, using KCM Local. 

Will the Housing Market Pick Up Next Year? 

With inventory steadily increasing and mortgage rates expected to come down gradually over the next year, more homes will sell in 2025. Experts project 5.2 million homes will sell next year, followed by continued growth in the years to come. While that’s not as much as when the market was booming a few years ago, it’s an improvement from the low we saw in 2024. And that means more activity. 

It’s up to you to help your clients realize they have the chance to get ahead of the crowd if they move now. A lot of people are going to wait until rates come down to jump back into the market. If your prospects can seize this moment, they’ll beat those other buyers to the punch — and that could mean less competition for their move.

Is the Market Going To Crash? 

Everyone remembers the housing crash in the early 2000s, when home values dropped considerably, and people fell behind on their mortgages. And they’re afraid that’s going to happen again. 

Here's one big reason today is different. In 2008, homeowners owed more on their mortgages than their homes were worth. Today, it’s the opposite. Homeowners have record amounts of equity. This equity acts like a safety net and is allowing many homeowners to avoid going into foreclosure if they’re facing financial hardships. 

What that means is the value of homes significantly outweighs what people owe on their loans — and this is one sign that the housing market isn’t going to crash.

The Bottom Line 

Market volatility over the last few years has buyers and sellers skeptical of what’s to come, and hesitant to make a move. But 2025 looks brighter. Expect mortgage rates to come down, total home sales to rise, and prices to increase at a more reasonable rate.  

This holiday season, reassure your friends, family, and potential clients that the market is moving in a positive direction. The best way to do that is to show them.  

Before you RSVP to another festive get together, download and save these slides to your phone so you’re ready to speak to all the shifts happening in real estate the next time someone asks, “How’s the market?”