Experts Forecast for the 2025 Housing Market

What to Expect from the 2025 Housing Market: Key Insights for Buyers and Sellers
by Bret Johnson, January 7, 2025

The real estate market never stands still, and 2025 is shaping up to bring its own unique challenges and opportunities. Whether you're planning to buy your dream home or sell your current property, understanding the latest forecasts can help you make smarter decisions. Here’s what experts are saying about the housing market trends for 2025.

Mortgage Rates: Will They Finally Fall?

One of the hottest questions in real estate right now is whether mortgage rates will drop significantly. The good news is they’re expected to ease slightly this year. However, don’t expect rates to return to the 3-4% range we saw in the past.

According to Lawrence Yun, Chief Economist at the National Association of Realtors, rates are more likely to stabilize in the mid-to-low 6% range by year-end. While this represents some relief for buyers, rates will still fluctuate based on inflation and economic factors. Instead of timing the market, focus on what you can control, like securing a rate that fits your budget.

Home Prices: Will They Decline?

You might want to reconsider if you’re waiting for home prices to drop significantly. Experts forecast home prices will continue to rise moderately, averaging around 3% growth in most areas. While this might feel like a disappointment for buyers, it’s important to note that this represents a much healthier and more sustainable market compared to recent years.

What’s driving these steady prices? It’s all about supply and demand. Despite an increase in available homes compared to last year, inventory levels still aren’t high enough to meet the demand from buyers. This means home prices in most markets will hold firm and, in some cases, climb even higher.

The Bottom Line for 2025

With mortgage rates expected to ease slightly and home prices rising at a steadier pace, staying informed and proactive is key. Whether you're buying or selling, working with a trusted real estate agent can help you navigate the market and make informed decisions tailored to your goals.

Let’s connect to discuss your local market trends and create a strategy that works for you. Contact me today at 480-775-7700 or by email bret@renetgroup.com to get started.

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This summary is based on insights from Bret Johnson, Associate Broker at Realty Network Group at Real Broker and Keeping Current Matters. For the full article, visit Real Estate with Bret Johnson.