Housing Market to Come ‘Roaring’ Back After Election: Real Estate Expert

The housing market is likely to come “roaring back” after the election, a real estate expert shared on Friday, but another expert told Newsweek the excitement may be premature.
Ryan Serhant, a real estate broker known on Million Dollar Listing, said buyers and sellers should expect the housing market changes after the election.
“Inventory is up. Interest rates are at 20-month lows… People are waiting. They want to see if deals are going to come. No one wants to catch a falling knife, but also no one wants to jump into a speeding car,” Serhant told Fox Business Stuart Varney on Varney & Company of today’s current market.
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While the current market has frustrated Americans, Serhant said he’s optimistic about where it’s headed in 2025.
“I think people are waiting to see what happens in November, and that will take us into a roaring 2025,” Serhant said.
Once mortgage rates reach 5 and 4 percent, Serhant predicted more liquidity in the market.
Elections often impact the housing market as an administration’s new economic policies change a market’s confidence level. Interest rates can also change as a result of those policies, based on Federal Reserve decisions.
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Lower overall inflation levels could also inspire an improved housing market as more Americans become able to afford a house.
Still, not all finance experts agree that 2025 will be as strong as Serhant is anticipating, especially as interest rates linger at 6.65 percent for a 30-year mortgage.
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“2025 is poised to be a good year for the housing market, but I think it’s premature to say it will start as strong as some are expecting,” Alex Beene, a financial literacy instructor for the University of Tennessee at Martin, told Newsweek.
“While interest rates are starting to decline, they’re still significantly higher than they were a few years ago, and that equates to higher monthly payments that will keep some buyers from diving in.”
And with the median U.S. home list price at roughly $432,000, according to Redfin, housing prices are still at historic highs in many cities across the country.
“As much as some may want to buy, it’s not financially feasible if you can’t even cover the down payment,” Beene said. “Next year should be a stronger year than this one for housing sales, but there are still some headwinds the market will have to face before surging ahead.”
For most Americans, their incomes haven’t grown high enough to match the typical cost of a home for sale in 2024.
“Long term, people can’t just keep spending more of their income on their housing payment,” Danielle Hale, chief economist at Realtor.com, previously told Newsweek. “It’s going to crowd out everything else in their budget.”