As we welcome 2025, I want to take a moment on behalf of the Bosshardt Realty team to express our heartfelt gratitude for your trust and partnership. Your confidence in us is the cornerstone of our success, and we are truly honored to serve you.
Looking ahead, I would like to share my top 10 predictions for the 2025 real estate market. Remember, real estate is hyper-local, meaning your neighborhood trends may differ from the national, state, or county statistics you often read about. With that in mind, here’s what we foresee:
Residential Market Predictions:
Prediction 1: The cost of homeownership will continue to rise due to increasing property taxes, insurance premiums, and adjustable interest rates. Many sellers, faced with high costs or the need for renovations, may opt to downsize.
- Opportunity: Sellers who prepare and list their homes strategically by spring can maximize selling prices while negotiating favorable terms on their next purchase.
Prediction 2: Inventory levels will grow. Homes unsold in 2024 will compete with new listings in 2025, potentially creating a buyer’s market by year’s end.
- Opportunity: Buyers will have more options and leverage in negotiations. However, well-prepared homes in desirable areas may still attract bidding wars and sell at a premium.
Prediction 3: The number of real estate agents will decline.
- Opportunity: Act early to secure a trusted Bosshardt agent. The best agents will be in high demand, ensuring expert guidance and optimal results.
Prediction 4: The 2025 real estate market will be marked by volatility.
- Opportunity: Partner with a knowledgeable advisor to craft a clear plan for buying or selling. Staying proactive and informed will be key to navigating market changes.
Prediction 5: Increased competition in the Airbnb market will drive some short-term rental properties back to the sales market.
- Opportunity: These properties may present excellent opportunities for first-time buyers or long-term rental investors. Stay alert for these deals.
Commercial Real Estate (CRE) Predictions:
For insights into the commercial real estate market, we turned to Eric Ligman, Director of our Commercial Division:
Prediction 1: The office market will begin to show signs of recovery.
- Opportunity: Leverage current low activity levels to negotiate favorable deals on well-located, high-visibility properties.
Prediction 2: Gainesville’s growing national profile will spur demand for retail and service businesses, driving the need for expanded inventory.
- Opportunity: Long-standing rental rates have room to grow, presenting opportunities for property owners to capitalize on increasing demand.
Prediction 3: Industrial properties will remain highly sought after, driven by advancements in logistics, supply chains, and AI technologies.
- Opportunity: Owners can leverage 1031 exchanges to strategically enhance their investment portfolios.
Prediction 4: Florida’s infrastructure challenges will persist, creating hurdles for developers.
- Opportunity: Existing properties with established infrastructure will become more desirable and valuable.
Prediction 5: Gainesville’s restaurant sector faces limitations due to the lack of fully equipped kitchens in many spaces.
- Opportunity: Developers who retrofit or build spaces with modern kitchens can attract diverse culinary tenants and elevate the dining scene.
Prediction 6: The growing demand for healthcare services will increase interest in second-generation retail spaces for medical use.
- Opportunity: These adaptable spaces, ideal for clinics and specialty practices, will see rising rental rates and strong occupancy.
Prediction 7: The CRE market is poised for growth as post-election stability fosters investor confidence and economic clarity.
- Opportunity: This recovery phase offers opportunities in key office sectors and renewed vitality across the commercial landscape.
Closing Thoughts:
2025 promises to be a year of dynamic shifts and exciting opportunities in the real estate market. By staying informed and aligning with the right partners, you can confidently navigate the changes ahead. Whether buying, selling, or investing, the Bosshardt Realty team is here to guide you every step of the way.
Thank you once again for choosing Bosshardt Realty. Wishing you a prosperous and fulfilling 2025.
Warm regards,
Aaron Bosshardt
