Real Estate Investors Share Their 2025 Market Predictions and Advice - Business InsiderMenu iconBusiness Insider logoBusiness InsiderAccount iconClose iconChevron iconAccount iconShare iconlighning bolt iconSave Article IconClose icon
Experienced real-estate investors don't expect mortgage rates to drop significantly in 2025, but they tend to agree that it could be an excellent year to invest in a property.
Arguably, any year is a good time to dip your toe in if you're financially prepared.
"Some of the best advice I can give somebody is just understand that you can never perfectly time anything," said Matt Laricy, a Chicago-based investor and agent who has done over $1 billion in sales and closed thousands of deals.
His advice applies to prospective homeowners, as well: "You have to live somewhere, so is it really worth waiting one or two years to maybe get it for 10% less, but in the meantime, you spend 20% more on rent? Are you really winning?
"Just know that the best time is when you're financially ready."
Here's what Laricy and other veteran investors and agents predict will happen in the real estate game in 2025.
Dana Bull says to think long-term and not wait for rates to drop
If you're looking to buy a home or invest in real estate in 2025, don't wait for rates to drop before making a move.
"I wouldn't base my whole plan around, 'Well, I keep hearing rates are supposed to drop,'" said Massachusetts-based investor and agent Dana Bull, noting that current rates are in line with the historical average. "This is kind of where rates sit. So, if they were to drop, that would be great, but I wouldn't be banking on it."
Instead, figure out how to make the numbers work in a high-rate environment. That'll mean getting creative.
"Look at some alternative leasing approaches. Usually, they're more lucrative if they're shorter," said Bull, who has always done long-term rentals but is experimenting with mid-term in 2025 to improve her cash flow. "One idea would be to start with something like an Airbnb, with the goal of transitioning after two or three years into something more passive, like a long-term rental."
Real estate is a long-term game, she added: "You have to look beyond year one — the numbers are always going to be tight year one, no matter what the market conditions are — so, what are your projections going to be by year five?
"And then, what can you do in the interim to maybe make this property work? That would be focusing on neighborhoods and communities where you can balance both of these plays: It's going to attract a short-term rental tenant but, down the road, you can pivot into a longer-term tenant."
Matt Laricy predicts the market will 'take off like a rocket ship'
"I expect 2025 to be the best market since 2022. I think the market is going to take off like a rocket ship," said the top Chicago real-estate agent, adding that, "obviously, every market is extremely local."
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In his market, rents are very high, and, "it's almost cheaper, when you factor out your down payment on a monthly basis, to buy than it is to rent," he explained. "So, you are getting a lot of people who are going to buy just as a result of that." Plus, employees should have more certainty around their company's return-to-office plan, which could promote settling down and buying: "A lot of people rented because they were uncertain of their future."
Laricy also predicts that prospective buyers will adjust their rate expectations: "I think people have now realized that 2 and 3% are never going to happen, and are like, 'At a certain point, I either have to continue to be a renter for the rest of my life, or I have to be a buyer.'"
His advice for navigating a competitive market is, first and foremost, understand the basics: where you want to buy, what type of property you want to buy, and a realistic budget.
"It sounds easy. But for buyers, it's really hard," he said.
Regarding your budget, Laricy said to assume a home will sell for higher than what it's listed at. Study your market to see how much homes typically go over the asking price and factor that in. If it's $50,000, for example, and your budget is $500,000, look at homes listed for $450,000.
If you know exactly what you want and what you can afford, you'll be able to move quickly, which is essential in a competitive market.
"Know that you have to do things on their time, not your time," said Laricy, referring to the seller. "When something comes on the market, you need to move, and you need to move fast."
Mike Zuber says it'll be a good market for investors and to focus on 'days on market'
California-based investor Mike Zuber expects 2025 to be a "unique" opportunity for investors.
"I think there are some people that will just have to sell — life events, death, divorce, all of that," he said. "And unless the house is perfect, no owner is going to buy it. The general public is basically out of the housing market. So if you have a house that's a little dated, a little old, a little bit too close to busy streets, you're going to eventually have to sell to an investor — and we're going to write offers that make sense at a high cost of capital, call it 7, 8%."
His advice is to pay attention to the number of days a property has been on the market to land the best deals.
"Go on the general MLS, Realtor.com, Zillow, Redfin, and just look for homes that have been on the market for 50 days, 60 days, 90 days, 100 days," he said. "We're seeing days on market explode, and that just tells you that that seller is eventually going to be motivated or they're going to just take it off the market. So, do they need to sell or do they want to sell?"
If they need to sell, you'll be in a better position to negotiate.
As for what number to look for exactly, start by understanding the average 'days on market' in your area. Then, look for listings where that number is double, said Zuber: "Anything that's two X the average days on market is a good sign to go fishing."
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Rules and regulations that may affect real-estate investors are constantly shifting. In New York City, where investor Nyasia Casey lives, a new law going into effect in June 2025 shifts the burden of broker fees from renters to landlords.
"Essentially, landlords have to pay broker fees now — not the tenants. So, if you're a landlord, you have to factor in that cost now," said Casey, who rents in NYC but invests in Baltimore. "A lot of landlord and tenant laws are changing in certain areas that you need to be mindful of because it will affect how much money you're putting in and how much money you have to set aside."
She also emphasized that seasonality matters, whether you're buying and holding or buying and flipping.
She said that as a general rule of thumb, "buy in the winter, sell in the spring."
Whether you're listing a rental or trying to sell a flip, you want to find a tenant or a buyer in the summer.
"Once you get past October, you're going to have a difficult time, and you may lose money, whether it be you have to lower your price for a flip, or you have to lower your rental price just to get someone in there so that you don't bleed money," she said. "So just be mindful of when you're putting that house on the market, when you're buying it, and when it's going to be finished."
Ludomir Wanot encourages investors to save up to make a move
"As of October, we're seeing about a 29% year-over-year increase in homes for sale, so what I'm seeing is the market is showing signs of balancing and the conditions are becoming more favorable for buyers compared to the last five years," said Seattle-based investor Ludomir Wanot, who built his wealth wholesaling and now runs an AI company that helps lenders communicate with their clients. "And so the best thing right now we could do is save our money for opportunities that arise."
He doesn't expect rates to drop significantly in 2025, "so learning and utilizing creative financing is going to be your go-to," he said, recommending strategies such as seller financing, subject-to agreements, and private lending could help investors lock in better terms and avoid excessive borrowing costs.
Wanot's top advice heading into the new year, however, is to actually implement what you learn about online. Taking action could be as small as joining a real-estate community and networking.
"People are buying programs, they're going to the events, they're watching people come up onstage and talk about how wealthy they got through a particular strategy. But very few people actually implement anything they're being taught," he said.
"The day we actually stop listening to and reading all these stories, podcasts, and YouTube videos and actually apply ourselves is the day we're finally going to start seeing progress in our lives."
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