If you bought a home last year, it’s likely that you paid more and locked in a much higher interest rate than you would have liked. Therefore, you’re probably hoping to see your home appreciate quickly to make up the difference.
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Even if you’re not a recent buyer, it’s always nice to see your home’s value moving in the right direction. GOBankingRates found real estate professionals to help outline signs that you might get your wish and watch your property value soar. Though property appreciation will vary by location, here are a few key takeaways about real estate predictions for this year and beyond:
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Though mortgage rates and housing costs have gone up across the board, home sales are expected to continue to go up steadily, with spikes over the next year when and if rates decline.
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Housing shortages in many regions could get a reprieve from newly built homes.
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New housing is also being added to the market by builders and contractors who can afford to buy down mortgage rates.
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There’s a chance under the Trump administration that there will be new or modified national rules created and enforced by revamped real estate commissions.
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Experts are predicting that, outside of a recession, mortgage rates will range between 6% and 7% on average, and short-term lending rates could continue to fall through next year.
2025 has already seen a new president, a high spike in inflation and questionable reliance on government funding. That aside, real estate remains a solid investment if you can afford it. Here are some signs your home value will go up soon.
Economic Recovery Means Solid Property Prospects
James Shorten, president of land and real estate development firm Shorten Homes, analyzes potential changes in property values for a living. In his experience, home prices rise and fall with the economic prospects of the surrounding area.
“Economic growth and the creation of new jobs are critical indicators of rising property values,” he said. “In regions where we’ve developed properties, we’ve noticed that proximity to burgeoning economic zones — such as tech parks or commercial hubs — directly influences the demand for housing.”
For example, Shorten’s firm recently built a series of modular homes near a new industrial park and witnessed “a substantial increase in home values” within that locality.
“This exemplifies how strategic land development and real estate pursuits can capitalize on economic expansions to forecast and leverage skyrocketing property values,” he said.
Story ContinuesAccording to business and real estate lawyer David J. Greiner, founder of Greiner Law Corp, the entrance of one new major employer is sometimes all it takes.
“When a prominent automotive dealership expanded its operations, it not only created numerous jobs but also increased the demand for housing in the vicinity, leading to a notable appreciation in property values,” he said of his time serving the California auto industry. “This illustrates the direct correlation between job creation and home values.”
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Your Town Is Investing in Infrastructure and Public Amenities
It’s not just jobs that build up localities and boost property values. Investments in the physical systems and structures on which healthy towns and cities thrive can also raise home prices.
“A prime example of a factor that could significantly boost home values is the development of infrastructure and public amenities,” said Greiner, who has sat on the boards of several foundations, businesses, hospitals and government entities. “Through my involvement with the Community Development Citizen’s Advisory Committee, I observed a marked increase in property values following investment in local infrastructure, such as road upgrades and the expansion of community facilities. These improvements not only elevate the quality of living but also enhance the attraction of the area to potential buyers, driving up home values.”
Your House — or Nearby Comparables — Are Homes of the Future
A clear majority of buyers are now actively seeking homes that are sustainable, eco-friendly and energy-efficient. Whether it’s from a commitment to environmental responsibility, a desire for lower utility bills or both, buyers are willing to pay more for modern features. If your home or those near it were built with energy efficiency and sustainability in mind, steep appreciation could be part of your financial future.
“Areas where we’ve introduced modern, energy-efficient modular homes often see a boost in property values,” said Shorten. “These homes, being quicker to construct and cost-effective, attract new demographics, fostering a community’s growth and enhancing its appeal.”
Your Municipality Is Enacting Favorable Zoning Rules
Shorten has also seen values rise when zoning laws change in favor of residential development and a higher density of housing.
“Our experience navigating these changes has shown that properties in areas transitioning to mixed-use or with eased density restrictions offer ripe opportunities for development and investment,” he said. “By adapting our projects to align with these zoning shifts, such as integrating multi-family modular units in traditionally single-family zones, we’ve effectively maximized land use and property values.”
Greiner, too, has seen the correlation play out in real life.
“From my legal experience, I’ve facilitated several transactions where rezoning allowed for different uses of the property, significantly increasing its market value,” he said. “For instance, a client benefited from a zoning adjustment that transformed their property from residential to commercial use, exponentially elevating its worth due to the broader development opportunities now available.”
Your Town’s Schools Are Improving
Just as rising crime rates can deter buyers more than nearly any other individual factor, nothing draws eager buyers like good schools. If your school district is earning better marks from rating platforms like Public School Review and Great Schools, you can probably expect a corresponding bump in local home prices.
“It is a known fact that good quality and highly demanded schools have a direct effect on the value of homes,” said realtor, contractor and property manager Hannah Jones of New Build Homes. “The main reason behind this is that families and kid-centered parents are more concerned about giving high-quality education to their offspring and sparing no expense. Therefore, demand for such homes increases and so, according to a free-market economy, does its price.”
Caitlyn Moorhead contributed to the reporting for this article.
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This article originally appeared on GOBankingRates.com: 5 Key Signs Your Home’s Value May Skyrocket by the End of 2025
