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75 April 2025 J O U R N A L April 2025 » Demand may increase more quickly and forcefully if mortgage rates decline this spring as well. Reduced rivalry between sellers: This week would have 13.2% fewer sellers on the market than the usual week of the year, according to a typical inventory trend. From the start of the year until about November, seller activ- ity usually increases. More for-sale possibilities appear to be available as we enter the selling season of 2025, which can boost buyer demand in both well-supplied and in-demand locations with low inven- tory levels. Improved affordability circumstances, which will be heavily reliant on declining mortgage rates and increasing availability, will be the key to this year's housing market. Highlights & Expectations for 2025 By the end of the year, mortgage rates are anticipated to drop to the mid-to-low 6% level. Conditions appear to be improving as we enter the selling season of 2025, with more possibilities for sale. This can boost buyer demand in both well-supplied and in-demand regions with low inventory levels. Better affordability conditions will be key to this year's housing market, and they will be heavily reliant on declin- ing mortgage rates and increasing availability. Both prices and competition typi- cally peak later. However, sellers should keep in mind that higher competition from other sellers for a comparable number of consumers coincides with peak prices later in the season. In the past, new sellers increased to approx- imately 1.5 times greater than at the beginning of the year (+46.2%) by the end of June, even though prices had already reached near-peak levels (+7.6% in 2024) compared to the beginning of the year. By entering the market early, homeowners who intend to sell this year can reduce that risk, increase the likelihood of a good closing, and proba- bly negotiate advantageous terms. Buyer and seller confidence may be impacted by uncertainty. Even though inf lation has decreased in recent months, the future is uncertain due to the different economic aims and recommendations of the current administration. In particular, tariffs have the potential to significantly increase the cost of homebuilding in the U.S. and harm the housing market by reducing homebuilding activity and increasing inf lation, which maintains high mortgage rates. However, the market may gain from the administration's indications that they intend to address housing afford- ability. Buyers and sellers may be reluc- tant to make any significant changes until the future is a little clearer, but it is too early to tell how these suggestions will turn out, and it is vital to recognize that individual opinions can impact whether policies inspire more or less enthusiasm. Where Do Buyers & Sellers Stand? The housing market is still undersup- plied, so a seller who lists a well-priced, move-in-ready property is likely to find success, even if the Best Time to List determined that April 13–19 is the ideal week for sellers to list. Listing early in the spring increases a seller's chances of a successful transaction because spring is typically the busiest time of year for real estate activity and buyers are more avail- able earlier rather than later. Remember- ing that it's a process, sellers should begin the process well in advance of the date they plan to list. Buyers have noticed an improve- ment in market circumstances during the past year. Since there are more homes for sale than there were a few years ago, the market pace is a little more controllable, as evidenced by longer days on the market and a higher percentage of homes with price reduc- tions, which shows that many sellers are more f lexible. This means that even in the busy spring and summer months, buyers may have a little more wiggle room in the market, which could offer them more time to make a decision, even though they still have to deal with high housing expenses. Views per listing have historically decreased in the late summer/early fall and then tend to increase for buyers after that. In 2024, there were almost 30% more sellers with actively listed properties than at the start of the year in the fall, giving purchasers great- er choices. It is therefore likely that buyers who can continue their property searches will get a little respite in that they will have additional options to pick from in the coming weeks. WHICH SFR MARKETS ARE YIELDING THE HIGHEST RETURNS? A TTOM has released its Q1 2025 Single-Family Rental Market report, ranking the best U.S. markets for buying single-family rental properties in 2025. The report analyzed single-family rental returns in 361 U.S. counties with sufficient rental and home-price data. The report shows that the annual three-bedroom gross rental yield (annualized median gross rent income divided by median purchase price) among the 361 counties analyzed is projected to be 7.45% in 2025—down slightly from an average of 7.52% in those same markets during 2024. Investment returns for landlords have slipped as home prices are rising faster than rents across slightly more than half the country. From 2024-2025, median single-family home prices rose more than median three-bedroom rents in 54% of the markets analyzed. The gaps—usually more than three percentage points—pushed rental yields downward. "The fallout from rising single-fam- ily home values is proving beneficial for long-time landlords, as increasing property prices drive rents higher. However, for new investors entering the rental market, conditions are becoming