Bess Freedman, the CEO of Brown Harris Stevens, has provided a candid assessment of the real estate market for 2025, describing it as "lumpy" and "bumpy." Speaking at a recent industry conference, Freedman shared her insights on the potential challenges and opportunities that lie ahead for buyers, sellers, and investors alike.
Freedman’s remarks came amid ongoing economic uncertainty and shifting market dynamics. According to her analysis, the real estate landscape will experience significant fluctuations driven by various factors, including interest rates, consumer demand, and economic conditions. She emphasized that stakeholders should prepare for a market that could vary considerably from month to month.
The CEO noted that rising interest rates are likely to create hurdles for potential homebuyers. As borrowing costs increase, many may find it more difficult to enter the market, leading to a slowdown in sales. Freedman pointed out that this trend could contribute to an uneven market where some areas may see declines while others continue to thrive.
Freedman also highlighted the impact of changing consumer preferences. As remote work remains prevalent, she indicated that individuals are increasingly seeking homes in suburban and rural areas, further complicating the market dynamics. This shift could lead to a disparity in prices between urban and non-urban properties, creating both challenges and advantages for different segments of the market.
In her address, Freedman urged real estate professionals to adapt to these changes by staying informed and agile. She underscored the importance of understanding local market conditions and being prepared to pivot strategies as needed. By doing so, agents and brokers can better serve their clients and navigate the complexities of the upcoming year.
Moreover, Freedman expressed optimism about certain sectors of the market. She identified luxury real estate as a potential bright spot in 2025, noting that high-net-worth individuals often remain undeterred by economic fluctuations. This segment could provide opportunities for growth even amidst broader market challenges.