2025 may bring more homes, but with familiar high prices.

Why it matters: Many people will remain locked out of homeownership, and Austin Realtors expect prices will remain similar to 2024's median sales price.

Here's what experts and industry pros predict is in store next year for mortgage rates, new builds, moves and more.

Rates will remain above 6%

U.S. mortgage rates are expected to be in the low- to mid-6% range at the end of 2025, according to Realtor.com chief economist Danielle Hale.

• Redfin's economists forecast rates to stay higher, near 7%.

Between the lines: "It's still going to be challenging to get into the housing market," especially for first-time buyers, Hale says.

Zoom in: The Austin metro's median sales price and closed sales both were down 2% in 2024 compared to the previous year, and we're likely to see a similar trend in 2025, according to Clare Knapp, housing economist for Unlock MLS and the Austin Board of Realtors.

• "It doesn't seem like mortgage rates are really positioned — at least as of right now — to come down significantly enough so as to induce a meaningful uptick in demand among buyers," Knapp tells Axios.

Buyers vs. sellers

The Austin metro's median sales price is still up roughly 40% compared to 2019, making 2025 another promising year for sellers, according to Knapp.

What they're saying: "It's a great opportunity for sellers because they are sitting on such large home-equity gains," Knapp says.

Yes, but: Buyers are still benefiting from higher inventory in the area — hovering around four to five months.

• "There's more opportunity for them in the sense that we have more supply on the market," Knapp says, but "that's somewhat offset by the higher rate environment and still-elevated home prices."

Luxury real estate thrives

Red River Cultural District's annual winter music festival returns Friday and Saturday to dozens of downtown music venues.

Catch up quick: Free Week began more than 20 years ago to keep downtown businesses open during what is traditionally the slowest time of year for the area.

• This year, 75 local bands will perform at venues including Stubb's, Swan Dive, Cheer Up Charlies, Chess Club, Empire and Elysium.
• The shows are free (duh) and the nonprofit pays artists for their performances.

What they're saying: "Free Week is a celebration of everything that makes Austin the Live Music Capital of the World — our incredible local artists, historic venues, and a Cultural District that has been a home base for generations of musicians," Nicole Klepadlo, interim executive director of the Red River Cultural District, said in a statement.

• "This festival is more than music; it's about preserving and evolving the culture and soul of our city," Klepadlo said.

🍽️ To eat: Festival goers can find deals at surrounding restaurants and bars like Stubbs BBQ, Hoboken Pies, Pelons Tex Mex, Vaquero Taquero and Marinara Miracles.

• Stubb's BBQ: 10% off for anyone who mentions Free Week
• Vaquero Taquero: 25% off birria quesadillas or birria ramen
• Central District Brewing: $5 Kayaker's Kolsch, $9 Cardamom Paloma
• Marinara Miracles: $10 meatball hero 

What's next: Find the full lineup and schedule on the Red River Cultural District's website.

🏈 The University of Texas defeated Arizona State 39-31 in double overtime in the College Football Playoff quarterfinals yesterday. (Associated Press)

• The Longhorns will next play in the Cotton Bowl Classic on Jan. 10 against Ohio State.

A Manor High School student charged with murder in the stabbing of a classmate has been found incompetent to stand trial. (CBS Austin)

😇 Mark Strama, director of the Annette Strauss Institute for Civic Life at UT and formerly a Texas House member representing Austin, has been appointed to the Texas Ethics Commission by House Speaker Dade Phelan. (Quorum Report)

📣 Texas Attorney General Ken Paxton says he will tour the state to put pressure on Republicans to vote for Rep. David Cook for House speaker. (KVUE)

Here's what's in store this weekend.

Friday

🎶 Watch alternative country duo Sidney Grimes & Brother John perform at Opa from 7-9pm. Free.

☕️ Catch the final days of Mozart's Festival of Lights. General admission tickets available online.

Saturday

🎭 See Broadway's "Come From Away" at Bass Concert Hall. Tickets available for three performances Saturday and Sunday.

🛍️ Shop vintage goods at the Citywide Vintage Sale from 8:30am-5pm Saturday and 11am-5pm Sunday at the Palmer Events Center. $10 entry.

Sunday

💡 Walk through immersive light installations on the final night of the Wildflower Center's "Luminations." Get tickets online.

Reading more is a lofty New Year's resolution, but it can be daunting to find the time.

Why it matters: Opening a book might add years to your life — literally.

• Readers live an average of two years longer than non-readers, a 2016 Yale study suggested.

We've got some tips to help you be a better bookworm in 2025:

🎯 Make it a habit: Carve out intentional reading time.

📱 Reduce screen time: Don't give in to the temptation of the dopamine hits that X or TikTok might bring.

📚 Use your library: Reading can be an expensive hobby, but taking full advantage of your local library can seriously brunt the costs.

💕 Get friends involved: Try out an app like Goodreads or Storygraph.

🚫 Don't be afraid to give up: Life's too short for a book you don't like.