Realtor Brad Merrell's Outlook for 2025: Thriving No Matter What

The 2025 housing market is expected to see moderate growth in home prices, around 3%, and mortgage rates hovering around 6.7%. As a Realtor, how do you respond to this news?  Realtor Brad Merrell, says what the housing market does won’t matter. He has been the top producer in his Coldwell Banker Realty 116-agent office in Winter Springs, Florida, for four straight years. What follows is a summary of the 2025 housing market and an interesting take on how Merrell works with one eye on his clients and one eye on helping the other agents in his office. The housing market in 2025 is poised for a dynamic year, with several factors influencing the landscape for homebuyers, builders, and renters. As the market adapts to new economic realities, industry leaders and associations are taking steps to address affordability and accessibility. Affordable Housing Initiatives Homebuilders are actively working to provide affordable housing options for first-time homebuyers. The National Association of Home Builders (NAHB) has unveiled a 10-point plan to address the housing affordability crisis. "The lack of homes is the primary cause of growing housing affordability challenges," said NAHB Chairman Carl Harris. "Any policy that seeks to improve affordability without addressing the need to increase the supply of single-family and multifamily for-sale and for-rent housing is doomed to fail." Real estate agents play a crucial role. The National Association of Realtors reports that agents facilitated 65% of new home sales in 2024. Rental Market Trends The rental market remains a significant segment of the housing landscape. According to the National Multifamily Housing Council, 34% of American households rented their homes in 2024. A study by the National Association of Realtors (NAR) found that 40% of renters would purchase a home if they could afford it. This highlights the significant demand for accessible financing options to help renters transition to homeownership. Mortgage Financing Affordability The National Mortgage Association is taking steps to make mortgage financing more affordable. "Credit availability increased to start 2025, driven by conventional credit supply rising to its highest level since June 2022," said Joel Kan, MBA vice president and deputy chief economist. Expanded loan offerings for cash-out refinances and more jumbo and non-QM loan programs are expected to provide more options for borrowers with firm credit profiles. For Merrell, mortgage rates won’t matter. Impact of NAR Settlement on Realtor Membership The NAR Settlement, which took effect in August 2024, introduced changes to offering compensation on Multiple Listing Services (MLSs). Despite these changes, the National Association of Realtors (NAR) membership has remained relatively stable. In August 2024, NAR membership was approximately 1.52 million. As of January 2025, it stands at 1.498 million. This slight decline suggests that the settlement had a minimal impact on overall membership numbers. “The NAR Settlement did not bother me one bit. I adjusted as needed but kept my focus on building relationships. No market condition can affect my business as long as I exceed expectations and build real relationships based on meeting needs, not commissions,” Merrell said. Federal Government Layoffs and Housing Inventory The recent federal government layoffs are expected to significantly impact housing inventory, particularly in areas with high concentrations of federal workers. "The Trump administration's mass layoffs of federal workers is upending the Washington, D.C., housing market," reported Redfin. Federal employment uncertainty has increased home listings and price reductions as workers seek to relocate or downsize. Author’s hunch: Look for empty office space conversions to condominiums to provide affordable housing alternatives to renting in recovering downtown markets. Summary As the housing market navigates through 2025, the combined efforts of homebuilders, policymakers, and industry associations will play a crucial role in shaping the future. Addressing affordability, expanding financing options, and adapting to regulatory changes will be key to ensuring a stable and accessible housing market for all. Merrell has no secrets when asked about his secret and does not focus on his accomplishments. “I love real estate. I get up every morning excited about helping my clients resolve concerns that are a big part of our service, and I don’t forget them after they buy or sell. Referrals and sincere concern for what I consider my new friends are 90 percent of my business.” Merrell said he does not worry about the market and does little marketing. “My plans don’t usually go as planned, so I depend on God to guide my steps and provide for me according to his plan, which always includes serving and encouraging others. I cannot explain my success any other way.”