USA
In December 2024, experts predict that the U.S. housing market will face challenges in 2025, with high costs and limited affordability. Some areas might see small price drops, but strong demand in key regions is likely to keep prices up. Analysts expect mortgage rates to settle by mid-2025, which could help buyers a little. However, overall activity in the housing market is likely to stay low because of affordability problems.
Source: 4 Predictions for the U.S. Housing Market
U.K.
U.K. house prices saw their most significant rise since March 2022, driven by a modest recovery in buyer demand. According to recent reports, house prices grew by 1.7% in November 2024, with first-time buyers showing increased activity due to slightly lower mortgage rates. Despite this growth, analysts warn that high inflation and economic uncertainty may slow growth in 2025, with housing affordability remaining a key challenge for many.
Source: U.K. house prices up by most since March 2022
Canada
Vancouver home sales surged by 28% in November 2024 compared to the previous year, showing renewed buyer interest due to slightly lower mortgage rates. However, analysts warn that this rebound might not last long, as high prices and limited housing supply continue to make affordability a challenge. The market remains very competitive, with buyers frequently competing in bidding wars for popular properties.
Source: Vancouver home sales surged 28% in November
Australia
Australia's housing market lost momentum in late 2024, with property prices falling in key cities like Sydney and Melbourne. This decline is attributed to higher interest rates, tighter lending criteria, and reduced demand from first-time buyers. Experts predict that this cooling trend will likely persist into early 2025, potentially offering a window of opportunity for prospective buyers.
Source: Australia’s housing market loses steam with prices falling in Sydney and Melbourne
Dubai
Dubai’s real estate market continues its rapid growth, with home prices expected to surge again in 2025. According to Knight Frank, prices for luxury properties are projected to rise by up to 15%, fueled by strong international demand and government initiatives aimed at attracting foreign investors. The market's expansion is further supported by ongoing infrastructure developments and a robust economy.
Source: Dubai Home Prices Set to Surge Again in 2025, Knight Frank Says
Singapore
Singapore’s property market faces potential government intervention if current growth trends continue unchecked. Recent reports highlight that home prices remain elevated, despite cooling measures introduced earlier in 2024. Experts warn that harsher property curbs may be necessary in 2025 to address affordability concerns and prevent overheating in the market.
Source: Singapore Seen Facing Harsh Property Curbs If Boom Isn’t Tackled
