What’s Ahead for the 2025 Housing Market? Here’s What the Experts Are Saying
What’s Ahead for the 2025 Housing Market? Here’s What the Experts Are Saying
As we head into the second half of 2025, real estate experts are cautiously optimistic. If you’ve been on the fence about buying or selling, now’s a great time to get up to speed with the latest housing market forecast. Here's what the data says—and what it means for your next move.
📉 Mortgage Rates Projected to Ease Slightly
According to forecasts as of May 13, 2025, mortgage interest rates are expected to dip into the mid-to-low 6% range by year-end. That means potential homebuyers may get some much-needed relief.
💡 Expert Forecasts:
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Fannie Mae projects rates around 6.2%
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Wells Fargo at 6.3%
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Overall average: 6.46%
Lower rates = higher affordability, which can spark more buyer activity and increased real estate market momentum.
📊 Home Price Growth Is Slowing
As housing inventory increases, the pressure on home prices is beginning to ease. Nationally, price appreciation is moderating—but remember, real estate is hyper-local.
📉 Zillow is forecasting a -1.9% drop, while others like Fannie Mae expect prices to rise by 4.1%. The average forecast across sources sits at +2.3%.
➡️ Translation? Home values may still increase, just at a more manageable pace, giving buyers time to plan and sellers confidence in their equity.
🏘️ Housing Inventory Is On the Rise
Inventory is up a whopping 30% year-over-year, meaning more choices for buyers and more competition for sellers. As rates ease, more homeowners may list their properties, continuing to boost home availability.
“The fact that inventory is rising year-over-year... strongly suggests that national active housing inventory for sale is likely to end the year higher.”
— Lance Lambert, Co-founder of ResiClub
This could lead to a healthier market with balanced supply and demand—something we haven’t seen in years.
🤔 What Should You Do Next?
If you’re thinking about making a move—either buying or selling—now is the time to strategize. With interest rates trending down, prices leveling off, and inventory improving, conditions may be more favorable than they’ve been in a long time.
📩 Have questions about the 2025 housing market, your local real estate trends, or what this means for your goals? DM me or drop a comment below—I’m here to help you make smart moves in this shifting market.
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