Last Updated on April 3, 2025
The real estate market is changing fast; the headlines that were prominent the last few years no longer apply. If it’s been a while since you’ve taken a pulse on the market, you’ll enjoy today’s article, where we’ll separate fact from fiction.
Fact vs. Fiction: Housing inventory is very low
Fiction: Housing inventory is picking up, and we believe this year’s real estate market will experience the most housing inventory we’ve seen since 2019. In fact, the latest report shows inventory up 27% compared to this time last year. Locally, most of our areas are experiencing more inventory; in Charlotte, for example, the months supply of inventory (MSI) is at 4.1 now, up from 2.2 this time in 2022. As a frame of reference, a seller’s market is present when there is less than 5 months of inventory, and a balanced market is when there is 5-7 months of inventory.
Fact vs. Fiction: When you find the one, you have to act fast
Fiction: In the past, inventory was so low that you had to act fast; now that inventory is returning to a more balanced state, you have more time to act and more options to evaluate. The latest data shows us that homes are sitting on the market an average of 3 days more than they were this time last year.
While you don’t have to make an offer as fast as buyers were forced to in years prior, it’s important to note that a home that is priced correctly, well maintained, and located in a highly desirable area will go quickly, as these types of homes are still in high demand.
Fact vs. Fiction: Buyers don’t have any room for negotiation
Fiction: In a low inventory market, where buyers outweigh sellers, there’s not typically too much negotiation going on. However, as the tide shifts and we return to more balance in the market, buyers have the opportunity to negotiate. Not only are there more homes for sale now compared to years prior, there are also fewer buyers, too, which also works in buyers’ favor.
Fact vs. Fiction: Interest rates are expected to drop soon
Fiction: Thankfully, it’s not predicted that interest rates will venture into the territory they resided in during the 2023 housing market; that said, interest rates will remain steady much of 2025. Here’s what our experts had to say about interest rates for this year:
- Mark McGoldrick, EVP, Howard Hanna Mortgage, predicts mortgage rates will be between 6.25-6.5%.
- Neal Hanks, President Allen Tate/Beverly-Hanks, predicts mortgage rates will be around 6.5%.
- Phyllis Brookshire, SVP, Operations, Allen Tate Realtors, predicts mortgage rates will be in the 6% range.
- Eric Heintschel, Chief Financial Officer, Allen Tate Company, predicts we’ll see interest rates between 6 and 6.5% the first half of the year and 5.75-6.25% in the final half of 2025.
- Gary Scott, President, Allen Tate Companies, predicts mortgage interest rates will be in the low 6% range.
Keep reading: If you want to buy a house in 2025, this is what you need to do right now
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Allen Tate is the Carolinas’ largest real estate company with more than 70 offices and 1,800 Realtors in the Charlotte, Triad, Triangle, High Country, Upstate SC, Highlands/Cashiers and Asheville/Mountain regions. Allen Tate is a partner of Howard Hanna Real Estate, the largest privately held real estate broker in the U.S., with 480 real estate, mortgage, insurance, title, and escrow service offices and 15,000 sales associates and staff across 13 states. For more information, visit www.allentate.com and www.howardhanna.com.
