Century 21 CEO optimistic over 2025 real estate market, spotlights key datapoint that buyers ‘don’t realize’

As consumers patiently wait for mortgage rates to stabilize, the CEO of Century 21 Real Estate is pointing consumers to the “positive signs” emerging in the real estate market.

“On residential front, I think there is Mike Miedler said there are a few good, positive signs gaining momentum.

“The decade-long pace of price growth, where we’ve seen absolutely double-digit price growth over the last four years, is starting to settle down a little bit. I think we’ll finish the year anywhere from flat to 2% or 3% year over year,” the CEO explained.

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HOUSING DEMAND INCREASES WHILE RATES ARE DECREASING

Miedler went on to offer some additional “good news” about the real estate market and its impact on investors’ economic outlook.

“Even though mortgage rates have dropped a little, they are creating more demand,” he said Tuesday.

Freddie Mac’s latest Primary Mortgage Market Survey, released Thursday, shows that the average interest rate on the benchmark 30 year fixed mortgage It fell to 6.69% (the lowest level since October), down from 6.81% last week. The average rate on a 30-year loan was 7.03% a year ago.

“We’re up about 3% week to week in purchase applications. And wow, that’s four weeks in a row. Believe it or not, you know where we were last year, but that’s about a 50% increase. Century 21 CEO, “From November 2023,” he said.

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As the affordability crisis continues, the increase in purchase applications may indicate that some demand is finally easing.

Century 21 CEO also described this impact. Federal Reserve’s interest rate cuts existed in the housing market.

“We saw the Fed start cutting in September. That translated into removing and increasing units across the country on an annual basis in October (for the first time), increasing units since 2021,” he said.

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Miedler concluded by explaining what he believes is the “biggest problem” driving up rates.

““I think we’re seeing some positive signs,” he said. “Affordability is still the biggest issue, which of course is mainly driven by interest rates.”

FOX Business’s Breck Dumas contributed to this report.