
The real estate market has shown remarkable resilience, with no crash on the horizon despite elevated interest rates. Likewise, pent-up demand from buyers and sellers sidelined in 2024 is poised to drive transactions in 2025. In addition, mortgage rates are expected to stabilize, potentially improving affordability and encouraging greater market activity.
Hence, investors could consider strong real estate ETFs like iShares U.S. Real Estate ETF (IYR), The Real Estate Select Sector SPDR Fund (XLRE), and Vanguard Real Estate Index Fund ETF Shares (VNQ) for diversified exposure in 2025.