2025 Housing Market Forecast: What Buyers and Sellers Need to Know

The housing market in 2025 is shaping up to be an interesting year for buyers, sellers, and investors alike. Based on expert projections, here are the key trends you can expect:

1. Mortgage Rates Are Projected to Come Down Slightly

If you’re planning to finance a home, there’s good news on the horizon. Expert forecasts suggest that 30-year fixed mortgage rates will stabilize in the range of 6% to 6.5% by the end of the year. While some volatility may occur along the way, this is a positive shift for those waiting for more favorable rates.

Here’s a snapshot of the 2025 30-Year Fixed Mortgage Rate Forecasts:

• Average of All Forecasts: 6.36%

• Range: From 6.12% (National Association of Home Builders) to 6.80% (Redfin)

  
  

This slight reduction in rates could make homeownership more accessible and give buyers more room in their budgets.

2. Home Prices Are Forecast to Rise

Nationally, home prices are expected to rise at a more sustainable pace, though this will vary depending on your local market. On average, experts predict a 3% appreciation in home prices across the country.

Here are some highlights from the 2025 Home Price Forecasts:

• Top Appreciation: AEI Housing Center (5.5%), Wells Fargo (4.9%), and Goldman Sachs (4.4%).

• Negative Projections: Moody’s Analytics (-0.4%) and Morgan Stanley (-2.0%) predict declines in select markets.

For sellers, this upward trend may translate to better offers, while buyers should prepare for modestly higher prices as they search for their dream homes.

3. More Homes Will Be Available for Sale

Inventory levels are projected to increase, giving buyers more options in the marketplace. According to Mike Simonsen, Founder of Altos Research, the number of homes available for sale is expected to grow by 15% by the end of 2025.

This is great news for buyers who have faced limited inventory in recent years. More homes on the market mean less competition and more opportunities to find the right property.

What Does This Mean for You?

Whether you’re planning to buy or sell a home in 2025, these trends point to a dynamic market. Lower mortgage rates, rising home prices, and increased inventory create opportunities for everyone, but careful planning and strategy will be key to making the most of the market.

If you’d like to discuss how these forecasts could impact your goals, let’s connect! Together, we can craft a plan that aligns with your needs and ensures success in 2025.