Last Updated on January 13, 2025
Allen Tate Companies Chairman Pat Riley predicts a year of stability
2024 was a year of unique challenges for residential real estate. From the NAR lawsuit and changes to the buyer agency agreement, to rising interest rates, low inventory, home price appreciation, Hurricane Helene and the Presidential election, it was a year that impacted both Realtors and consumers.
“The past year is one that many of us are ready to put behind us. For 2025, I’m going to predict a year of stability. I’m bullish on the opportunities stability will create for real estate,” said Allen Tate Companies Chairman Pat Riley in the January edition of Carolinas Market Update.
Here’s a breakdown of what to expect:
Interest rates. For many buyers, this is the magic number. The Federal Reserve is expected to maintain a gradual approach to rate cuts in 2025. Riley believes that rates will eventually land in the low 6’s, which will offer some relief for buyers and bring them back to the market.
Appreciation. Falling interest rates will likely be offset by modest continued appreciation. The Carolinas are better positioned than other parts of the country because of in-migration; Riley predicts a healthy 5 to 6 percent appreciation.
Inventory. In 2025, Riley expects to see the highest for-sale inventory since 2019 as Baby Boomers downsize, current homeowners finally make their move, and new construction homes become available. That said, the market will move at a slower pace, with days on the market increasing.
Inflation. Riley anticipates a modest rise in inflation, probably in low 2’s early in the year, with a possible uptick in the second half. A downward trend in inflation increases consumer confidence. A stable economy without major fluctuations is a good thing for real estate.
“I’ve always stressed that real estate is local, so predictions will never be “one size fits all.” However, national real estate sources are predicting good things for many markets in the Carolinas,” Riley said.
NAR has ranked the Charlotte-Concord-Gastonia MSA and the Greenville-Anderson SC MSA in its Top 10 Housing Hot Spots for 2025. Realtor.com has ranked Charlotte No. 14 in its Top 100 list for growth – a dramatic shift from No. 97 in 2024. Greensboro-High Point is ranked at No. 10 and Durham-Chapel Hill at No. 13.
“2025 will be a year that’s a little less volatile, a little more expected,” Riley said. “And it will be a year where sellers finally decide to list their homes for sale and buyers will feel confident enough to make one of their most important financial decisions.”
Carolinas Market Update is targeted to consumers in the Charlotte, Triad, Research Triangle, High Country, Highlands/Cashiers, and Asheville/Mountain regions of North Carolina, and the Upstate and Low Country regions of South Carolina. It is produced every other month by the Allen Tate Companies and features information, statistics, trends, and predictions about the real estate market in North and South Carolina.
Allen Tate is the Carolinas’ largest real estate company based on closed sales volume, with more than 70 offices and 1,800 Realtors in the Charlotte, Triad, Triangle, High Country, Highland/Cashiers and Asheville/Mountain regions of North Carolina and the Upstate and Low Country regions of South Carolina. Allen Tate is a partner of Howard Hanna Real Estate, the largest privately held real estate broker in the United States. The full-service real estate company has 500 real estate, mortgage, insurance, title, and escrow service offices and more than 15,000 sales associates and staff across 13 states. For more information, visit www.allentate.com and www.howardhanna.com.
