Where is the Housing Market Going in 2025?

85 Spier Road sold this week.

How will the economic uncertainty on the national front affect the housing market? Jonathan Lerner of Five Corners Properties in Scarsdale offers the following insights:

The once-booming housing market is showing signs of moderation, with home price growth slowing nationwide. While the market remains stable, several key trends are shaping the real estate landscape in 2025.

Home Price Growth Slows
After years of rapid appreciation, home prices are up just 2% year-over-year, down from the 4-5% growth seen late last year. "With elevated mortgage rates, weak demand, and growing supply, we may see increasing pressure on prices," said Lerner. However, experts caution against expecting a sudden collapse.

Housing Demand Stagnates but Avoids a Crash
Newly pending home sales are at the same level as last year, suggesting a market that is stabilizing rather than cratering. "Some online speculation about a Washington D.C. housing crash is misleading—inventory is still tight in that market," Lerner noted.

Regional Disparities in Home Prices
While the national market remains relatively flat, certain regions are experiencing price declines. "Northern cities with tight inventory continue to see price appreciation," Lerner explained, "but Sun Belt markets, where supply has increased significantly, are more likely to see price declines."

Historical Context: A Different Market Than 2022
Sharp home price drops were seen in 2022 due to rapid mortgage rate hikes, but today’s market presents a different scenario. Prices are not falling dramatically but rather holding steady, reinforcing the notion of a cooling rather than collapsing market.

Inventory Grows, But No Market Flood
The number of homes for sale has risen by 29% compared to last year, with 144,000 additional listings. A forecast suggests inventory will grow another 18% by the end of 2025. However, new listings remain lower than pre-pandemic levels, preventing an oversupply situation.

Despite speculation, a surge of sellers has not materialized. "Even in weaker markets like Tampa, we’re seeing moderate supply growth rather than an overwhelming influx of new listings," Lerner observed.

Home Sales Remain Sluggish
Pending home sales have ticked up 5% week-over-week, yet overall contract activity is still 3% lower than last year. "If current trends persist, we may need to revise 2025 sales growth expectations downward," said Lerner.

More Price Reductions, But No Major Drops
A record 33% of homes on the market have seen price reductions—the highest percentage in years for February. However, Lerner points out that recent weeks have seen fewer price cuts due to an uptick in fresh new listings.

Uncertainty Ahead for 2025
While there is no clear evidence that home prices will turn negative, the market remains in flux. "The next few months will be telling," Lerner concluded. "Buyers and sellers alike should keep a close eye on economic indicators and regional trends."

Here are this week's sales and featured listings:

Sales:

85 Spier Road   Bright new construction to be completed by end of summer 2024. Natural light abounds in the large 2-story entrance foyer which opens to the dining and living rooms. The large Chef's Kitchen w/JEM cabinets, premium appliances and quartz countertops is open to the Family Room w/fpl and wall of sliding doors to a 43' patio and level backyard. Additionally, there is a library/home office, a kids study/2nd home office, mudroom w/lots of storage, butler's and food pantry and 2 half bathrooms! Upstairs is the owner's bedroom w/tray ceiling and 2 generous walk-in closets, a marble spa bath w/2 sinks, soaking tub and separate shower. Each of the 3 bedrooms has its own walk-in closet and bathroom, a windowed laundry room, a 485 sq. ft. playroom w/endless possibilities. The lower level has a bedroom and bath and lots of finished space. Quality features include: European high eff. aluminum windows, foam insulation and much more. Ceiling height: 10' first floor, 9' on 2nd floor and lower level. 

Sale Price: $4,550.000
Real Estate Taxes: $31,582
Assessment Value: $1,143,000

19 Salem Drive   Beautifully reimagined inside and out, this magnificent Colonial is ideally suited to modern living and spectacular indoor-outdoor entertaining on a park-like almost half-acre in Scarsdale's coveted Quaker Ridge. An idyllic front landscape invites you inside this stunning 4000-square-foot plus showplace that has been extensively upgraded with new windows, roof, siding, gutters, generator, updated mechanicals and more. From the gracious foyer, this home is filled with gleaming hardwood floors and elegant millwork that lead you to the breathtaking formal dining and oversized living room with marble surround fireplace that features bay windows overlooking the picturesque backyard. Elevate your culinary skill in the superb eat-in kitchen featuring abundant cabinetry, center island and state-of-the-art appliances. Enjoy mealtime in the breakfast room with palladium windows and vaulted ceilings overlooking the double height family room. There is also a mudroom with easy access to the 2-car garage. Head upstairs to discover the recently renovated private quarters including a sprawling owner's suite with walk-in closet and spa bathroom. Three secondary bedrooms include roomy closets and a recently renovated hall bath. On the finished walk out, lower level, you'll find additional flexible living space with newly tiled recreation and game room. There is also a potential bedroom/gym or additional office with a full bathroom. The lush, setback front yard and handsome facade add wonderful curb appeal to this sophisticated Scarsdale sanctuary.

Sale Price: $2,695,000
Real Estate Taxes: $45,237
Assessment Value: $1,832,000

14 Withington Road  Experience the timeless allure of this exquisite 1929 Tudor, nestled in the prestigious Cotswolds community. As you enter you will be welcomed by soaring beamed ceilings and a striking stone fireplace that anchors the expansive living area. Start your mornings in the bright breakfast room, a sunlit space that sets a perfect tone for the day. The eat-in kitchen includes a convenient desk area ideal for quick tasks. Host memorable dinners in the elegant formal dining room, a space designed for entertaining in style. This home boasts 4 spacious bedrooms and 4.5 baths, ideal for both family and guests. A den and a dedicated office with built-ins provide versatile spaces to suit your lifestyle. The finished basement is a true retreat, with floor to ceiling windows that draw in natural light, complemented by stone accents that create a harmonious connection to the outdoors and is complete with a pantry and wet bar. Outside, the in-ground heated pool serves as a private oasis, perfect for warm summer days and unforgettable gatherings. With ample space for swimming, lounging, and entertaining, it's surrounded by lush landscaping that provides added privacy. Whether you're hosting a weekend barbecue, unwinding after a long day, or enjoying a sunset swim, this pool area promises endless enjoyment. This home makes everyday feel like a getaway in your private paradise.

Sale Price: $1,250,000
Real Estate Taxes: $52,675
Assessment Value: $1,587,800

Featured Listings:

70 Stratton Road  Welcome home! Nestled on a beautifully maintained .46 acre level lot in the highly sought after Quaker Ridge neighborhood, this charming Split-Level home offers exceptional space, comfort, and modern convenience. The first floor welcomes you with a spacious foyer, an oversized living room, a formal dining room, and a home office with a cozy wood burning fireplace-all accented by elegant crown molding throughout. The kitchen boasts a Viking Range, a Sub-Zero refrigerator, and abundant counter space opening seamlessly to the bright dining area. On the second level, you’ll find three generously sized bedrooms, including one with en-suite bathroom plus a hall bathroom. A short flight up leads to the luxurious primary suite, complete with a skylight , two walk-in closets, a dressing area and spacious en-suite bath. The lower level features a gracious family room with built-in cabinetry, and direct access to the stone patio, and level backyard, perfect for outdoor entertaining. A two-car attached garage is conveniently located just steps from the entry foyer. A few more steps down, a large recreation room with custom built-ins offers ample storage, plus full bath, bedroom and laundry room. Ideally situated close to the Scarsdale Pool Complex, recreational facilities, and The Little School, this home is a must-see!
Click Here For More Information:
Listing Price: $2,195,000

62 Brambach Avenue   Prime location! This delightful residence, lovingly maintained by a multi-generational family for nearly 70 years, is now ready for new owners to create their own cherished memories. Nestled in a highly desirable area, the home is within walking distance to Scarsdale village’s shops, restaurants, and the Metro North station. Additionally, a complimentary school bus service is available to all public school levels. Key features include a welcoming front porch, a beautifully updated kitchen, and a first-floor bedroom with an en-suite office. The second floor offers two generously sized bedrooms, a bonus room, and ample storage. There is a beautiful perennial garden that is much admired by all who pass by! Residents are eligible for Lake Isle membership, which provides access to five pools, year-round tennis, golf, and catering services.
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Listing Price: $749,999