Housing Market Forecasts for the Rest of 2025
If you’ve been watching the market, you’ve likely noticed a few changes already this year. But what’s next? From home prices to mortgage rates, here’s what the latest expert forecasts suggest for the rest of 2025 – and what these shifts could mean for you.
Many buyers are hoping home prices will come down soon. And recent headlines about prices dipping in some areas are making some people believe it's just a matter of time before there’s a bigger drop. But here are the facts.
While home price growth is slowing down, that doesn’t mean we’re headed for a crash. As NAHB explains:
“House price growth slowed . . . partly due to a decline in demand and an increase in supply. Persistent high mortgage rates and increased inventory combined to ease upward pressure on house prices. These factors signaled a cooling market, following rapid gains seen in previous years.”
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The right strategy matters more than old market assumptions.
More time on market can mean more room to negotiate.
Lower asking prices are bringing buyers back.
Lower asking prices and better supply are easing the search.
Negotiation is becoming part of the selling process again.
Inventory tells the story behind local shifts.
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