What Do Experts Forecast for the 2025 Housing Market?

By Cory & Rhonda Berdinner

Dynamic husband and wife team, Cory & Rhonda believe customer service is the key to a successful (and fun!) transaction. Whether you are buying your first home or selling your 10th, they use their experience to negotiate on your behalf and always strive to deliver a smooth transaction.

The No. 1 question I’m hearing right now is, “What’s going to happen to the housing market in 2025?” It’s a fair question. Many people have been hesitant to make a move in 2024 due to higher mortgage rates and market uncertainty, leaving them wondering if next year will bring better opportunities. The truth is, no one has a crystal ball, but we do have some key indicators to help us make informed predictions.

In this article, I’ll break down what experts are saying about mortgage rates, home prices, and buyer demand for 2025. Plus, I’ll share actionable advice to help you navigate the market effectively, whether you’re buying or selling.

1. Mortgage rates will ease slightly. Interest rates have been a significant factor slowing the market in 2024, keeping many buyers on the sidelines. While some are hoping for a dramatic drop, the reality is more subtle. According to leading financial institutions, mortgage rates are expected to dip slightly in 2025, potentially falling just below 6%. While this won’t be a sharp decline like we saw a few years ago, it’s enough to make a difference in affordability.

What does this mean for buyers? It’s incredibly tough to time the market perfectly. If you find the right property at a price that fits your budget today, it may be better to buy now rather than waiting. Refinancing later when rates dip can be a smart move, especially since buying in a quieter market lets you avoid heavy competition.

2. Home prices will increase slightly. The second major trend for 2025 is a modest rise in home prices. After a mixed bag in 2024—some areas saw prices decrease while others held steady or increased slightly—most experts predict a 2.6% average price increase nationwide for 2025. This steady growth reflects a balanced market where prices remain affordable for buyers while offering stability for homeowners.

This means 2025 is shaping up to be a favorable year for sellers. If you’ve been waiting to list your home, now is the time to prepare so you can take advantage of the market’s upswing.

3. More buyers will enter the market. As interest rates ease, more buyers who’ve been waiting on the sidelines are expected to jump into the market. This influx will increase demand, and as demand rises, competition will naturally follow. Initially, buyers will enjoy a wider selection of homes, but as the market heats up, inventory will tighten, and prices may climb further.

For buyers, this underscores the importance of acting quickly. There’s likely to be a narrow window where interest rates dip, and prices haven’t yet risen significantly due to increased demand.

Trying to perfectly time the market is nearly impossible. Instead of waiting for the “perfect moment,” focus on what works for your budget and goals today. For buyers, this means finding a home that fits your needs now and refinancing later if rates drop. For sellers, this is the perfect time to plan your move and position your property to attract motivated buyers in a steady, growing market.

If you’re thinking about buying or selling in 2025, I’d love to help you create a strategy tailored to your unique needs. You can call or text me at 801-821-9400. Let’s work together to make your real estate goals a reality!