Featuring the perspectives of:

Vanessa Calhoun
Realtor, HomeSmart

Bill Murray
Managing Director, COMPASS

Sherry Noles
Regional Vice President for Atlanta, Coldwell Banker Realty

What do you expect for the overall housing market in 2025?

Sherry Noles: I expect the market to gain steady momentum. Home prices are predicted to again rise moderately and will reflect a more stable and normalized growth rate, compared to rapid increases seen in recent years. With market conditions such as interest rates and stabilization of prices, it could result in more negotiating power for buyers. In fact, the National Association of REALTORS® predicts a more positive year for the housing market in 2025, adding to the overall optimism.

At Coldwell Banker Realty, we share this optimistic outlook. Atlanta’s robust economy and growth rate are anticipated to bring a well-priced inventory to the market, motivating hesitant buyers to make their move. The year 2025 brings more choice to our buyers and sellers as to who represents them in their transactions. Our commitment to leveraging cutting-edge technology and providing top-notch training ensures our agents are well-prepared to navigate this promising landscape and support our clients in achieving their real estate goals.

Vanessa Calhoun: In 2025, I expect home prices to continue appreciating but at a more normalized rate of about 3-6% annually. Despite a slight increase in market absorption rates, we’re still in a seller’s market, as inventory remains below a six-month supply. This limited inventory is currently supporting steady home price appreciation, even amid reduced buyer activity.

I anticipate a slower start to 2025, but I’m optimistic that interest rates will gradually decrease and stabilize around 5%. Such a shift would make home financing more accessible, likely boosting buyer interest and re-energizing the market. This combination of factors suggests that while we may see more balanced market conditions, the fundamentals for continued home price growth remain strong.

Bill Murray: I expect 2025 to be a stronger market than 2024, which saw a very continuous presidential race that took the focus off of housing needs for many consumers. Those housing needs are still there. The new year will see an increase in inventory and closed sales. 

What growth, if any, do you expect for your company next year?

Calhoun: One thing I truly appreciate about HomeSmart is its unwavering commitment to listening to its agents and understanding what we need to succeed, especially in evolving markets. Their systems, support, and training for both new and seasoned agents are exceptional, far surpassing what’s typically offered by other transaction-fee-based brokerages. Given their proactive approach to agent needs and the comprehensive resources they provide, I am confident we’ll see continued growth in 2025.

Noles: Coldwell Banker Realty in Atlanta is poised for a year of growth, driven by favorable market conditions, technological advancements, a strong focus on agent development, and a client-centric approach. We are excited about the opportunities ahead for 2025. In fact, both nationwide and locally, we aim to increase our share of the luxury market. As a company, Coldwell Banker sells $200 million a day in luxury real estate.

In Atlanta, we have introduced our inaugural Coldwell Banker Global Luxury office in Buckhead. with more planned in the future. Southern cities like Atlanta are drawing affluent buyers daily. Atlanta’s growing metropolis and lower cost of living offer a unique value proposition to fuel luxury market growth.

What will be the biggest challenges for agents in 2025 and how can they overcome those challenges?

Murray: The biggest challenge for agents is the speed of the economic turnaround and how it will affect mortgage rates. Mortgage rates dropped in the late third quarter and then started creeping back up. If we can see consistent low 6% rates, that will have a very strong positive impact for agents.

Calhoun: The biggest challenge for agents in 2025 will be demonstrating their value to clients, particularly in a market where buyers are increasingly concerned with housing affordability. With rising costs and fewer first-time buyers able to save enough for closing, it’s essential for agents to stand out by becoming experts in down payment assistance, grants and other financial resources. Education and training are crucial here. Agents who can clearly communicate their unique value proposition and confidently guide clients through these financial options will have a distinct advantage in attracting and retaining clients.

Noles: As we look forward to 2025, real estate agents will require a combination of expertise, innovation, and strategic planning. Agents will need to bring value to their clients. The best way to achieve this is by demonstrating their expertise in their knowledge of the market, optimal pricing strategies, leveraging AI technology, and developing effective marketing plans.

Speaking of AI, I encourage all agents to embrace technology to provide an even better experience for their clients. If there is one thing you can be certain of, it’s that technology is going to continue changing and evolving. Spending time staying up-to-date with these changes will be critical for agents to stay relevant as years pass by.

Lastly, agents need to prepare strategies for what’s happening in the economy, from unemployment to inflation and interest rates. The support, expertise and experience that Coldwell Banker gives to its agents give them an extra edge to overcome any challenges in the market.

Check out this year’s other predictions below!