The U.S. housing market may be shifting, and some real estate experts believe 2025 could offer new opportunities for buyers.
“I think it’s a huge opportunity for buyers in the next 12 to 18 months,” said HGTV’s “Flipping 101” host Tarek El Moussa during an appearance on “Fox & Friends,” Tuesday.
“I do not see a crash coming.”
According to the National Association of Realtors (NAR), 2024 had the lowest level of existing home sales since 1995. However, housing inventory rose 5.1% in February compared to the previous month and 17% year over year. Mortgage rates, while still high, have also dropped slightly, with the 30-year fixed rate averaging 6.65% as of late March.
El Moussa acknowledged that while inventory is increasing, the market still isn’t back to normal.
“They’re saying it’s thawing out, but if you look historically, we still have less inventory than a normal market,” he said. “The reason… is [be]cause the majority of people that have a mortgage today, the rates are so low they can’t afford to move, and they can’t qualify to move. So, what’s happening is there’s just nothing available.”
When asked about the impact of the new Trump administration, El Moussa dismissed the idea that political leadership is driving the changes.
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“I don’t think it’s because of the administration,” he said.
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“I think it’s based on the fact that they’re [Federal Reserve] trying to prevent a recession, but they’re also trying to prevent the prices [from going] up because they’re already inflated. So, I think what we’re going to see is the interest rates kind of toggling up and down like they’ve done the last couple of years.”
While home sales typically slow in the winter and pick up in the spring and summer, El Moussa predicts a long-term shift in homeownership trends.
“I see a big change coming into our future, and that change is people are going to be in their homes longer.”
“I think you’re going to see people remodeling their houses, doing additions to their houses,” he said.
He also noted that the government is increasingly looking to investors to help expand housing availability.
U.S. Department of Housing and Urban Development (HUD) Secretary Scott Turner has shared that the Trump administration is looking to use federal lands to increase the supply of affordable housing and alleviate the shortage on the market. Turner has partnered with U.S Secretary of the Interior Doug Burgum to work on identifying what lands could be used.
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