What’s Next for the 2025 Housing Market? Here’s What the Experts Say

If you’ve been keeping an eye on the housing market, you’ve probably noticed some shifts already this year. But what can we expect for the rest of 2025? Let’s break down the latest expert predictions on home prices, mortgage rates, and what it all means for buyers and sellers.

Are Home Prices Going to Fall?

Many prospective buyers are holding out for prices to drop, but the outlook isn’t that straightforward. While some local markets have seen slight declines, a broad nationwide drop isn’t likely. In fact, the average of eight leading forecasts points to a modest price increase of 1.5% to 2% by year’s end.

According to the National Association of Home Builders (NAHB), slower price growth is being driven by a combination of high mortgage rates and rising housing inventory. These factors are cooling the market a bit, but not signaling a crash. Even in areas where prices have dipped, the average decrease is around 3.5%—a far cry from the nearly 20% drop during the 2008 downturn.

And in the bigger picture, home values have risen an impressive 55% nationally over the past five years, according to the Federal Housing Finance Agency. So, even if prices flatten out, homeowners still have substantial equity gains.

What About Mortgage Rates?

Mortgage rates continue to be a major focus for buyers—many are hoping for them to fall before jumping into the market. However, recent updates from the Federal Reserve and Yahoo Finance suggest rates will likely hover in the 6% range through the end of 2025.

Trying to perfectly time the market isn’t usually the best approach. A small rate adjustment won’t significantly change monthly payments, and waiting could mean missing out on the right home for your needs. Instead, the smart move is to base your decision on your personal situation and long-term goals.

The market in 2025 isn’t crashing—it’s settling. If you're thinking about buying or selling, it’s essential to work with a knowledgeable real estate professional who understands your local market. I’m here to help you make informed decisions based on today’s realities—not tomorrow’s speculation.

Contact me today and let’s discuss your moving plans.