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Heres why, according to Kelman.

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Also see20 housing markets where homes will skyrocket in value before the end of 2025.

This is part of the reason homes have gotten so unaffordable in recent years.

Kelman said he sees things loosening up in 2025, however.

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While likely due to unaffordability, the pattern is becoming somewhat self-fulfilling.

When buyers stop buying due to homes being too expensive, prices will ultimately fall.

And with fewer sales happening, inventories by definition rise, helping to loosen up the supply-demand imbalance.

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In fact, Kelman described the current housing situation as a tale of two markets.

How About Renting?

According to Kelman, renting is still the better deal for most Americans in most locations.

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The combination of high interest rates and rising prices has continued to make homes more unaffordable.

However, things may be taking a small turn in favor of buyers in 2025.

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