Expert Forecasts for the 2025 Housing Market: What It Means for Real Estate in Delaware and Maryland

As we head into 2025, the luxury coastal real estate market in places like Bethany Beach, DE, and Ocean City, MD, is set to be shaped by two major factors: mortgage rates and home prices. If you’re planning to buy or sell a stunning beachfront or bayfront home this year, here’s what you need to know:

Will Mortgage Rates Decrease?

Many potential buyers are watching mortgage rates closely, hoping for a drop. The good news is that rates are expected to ease somewhat in 2025, but don’t expect them to return to the ultra-low rates of previous years. Experts, including Lawrence Yun from the National Association of Realtors (NAR), project rates will settle around the mid-to-low 6% range.

While this isn’t as low as we’ve seen, a small decrease could still provide significant savings for buyers, especially in the high-demand luxury markets along the coast. If you’re eyeing an oceanfront property or a home with bay views, a trusted local lender and real estate team can guide you in finding the best options that fit your needs.

What About Home Prices?

For luxury coastal homes, the outlook for prices is optimistic. While rates may ease, home prices are expected to rise, albeit at a more steady pace of around 3-4%. This is great news for sellers in areas like Bethany Beach and Ocean City, where demand for prime oceanfront and bayfront properties remains strong. Despite more inventory hitting the market, supply is still lagging behind demand, which will continue to drive price appreciation in these exclusive communities.

What Does This Mean for You?

If you’ve been thinking about buying or selling in the Delaware and Maryland beach markets, 2025 will offer both opportunities and challenges. The key is staying informed and working with a real estate team who understands the nuances of luxury coastal homes. Whether you’re looking for a serene bayfront retreat or a stunning oceanfront estate, we’ll help you navigate the market and find the perfect fit for your lifestyle.

Let’s connect to discuss your goals for 2025 and make sure you’re in the best position to take advantage of the market’s trends.