Century 21 CEO optimistic about 2025 real estate market, highlights key data point ‘buyers don’t realize’

While consumers patiently wait for mortgage rates to settle, the CEO of Century 21 Real Estate is informing consumers of the “positive signs” emerging from the real estate market.

“on The housing front, I think there is A few good, positive signs are building momentum,” Mike Midler began.

“This decade-long surge in price increases, which we’ve certainly seen double-digit price increases over the last four years, is starting to level off a little bit. I think we’ll end the year anywhere from flat to a 2-3 increase,” the CEO explained. % or 3% on an annual basis.

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Mortgage demand jumps as rates fall

Midler went on to detail some additional “good news” for the real estate market and its impact on investors’ economic outlook.

“Mortgage interest rates, even though they are down a little bit, are creating more demand,” he said Tuesday.

Freddie Mac’s latest primary mortgage market survey, released Thursday, showed the average rate on the benchmark index… 30-year fixed mortgage It fell to 6.69% – the lowest level since October – from last week’s reading of 6.81%. The average interest rate on a 30-year loan was 7.03% a year ago.

“On a weekly basis, the number of purchase orders is up about 3%. Wow, that’s four straight weeks in a row. And believe it or not, you know where we were last year, but that’s almost a 50% increase as of November 2023,” the president said. CEO of Century 21.

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As the affordability crisis continues, a spike in app purchases could indicate some demand is finally easing.

The CEO of Century 21 also analyzed the impact it is having There have been interest rate cuts by the Federal Reserve He was in the housing market.

“We saw the Fed start cutting interest rates in September. And what that turned into was an increase in units across the country and an increase (for the first time) year-over-year in October, and an increase in units since 2021,” he said.

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Midler concluded his speech by revealing what he believes is the “biggest problem” driving rates up.

““I think we’re seeing some positive signs. Affordability is still the biggest issue, and that’s obviously the primary driver of rates,” he said.

FOX Business’ Breck Dumas contributed to this report.