What’s Ahead for the Housing Market in 2025?

Your Mid-Year Forecast

If you’ve been paying attention, you’ve likely seen a few shifts in the housing market already this year. But what’s next? Whether you’re buying, selling, or just staying informed, here are some expert insights on home prices, mortgage rates, and what it all means for your next move.

So, Are Home Prices Going to Drop?

Buyers hoping for big discounts have been watching headlines about slight dips in certain areas—but the bigger picture tells a different story:

• Price growth is slowing, not collapsing. The National Association of Home Builders (NAHB) notes:

“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.”

• Experts still forecast modest gains. A national average of eight major forecasts sees home prices rising 1.5–2% in 2025.

Even markets with small declines (around –3.5%) aren’t anything like the 20% crash of 2008. After a 55% national gain over the past five years (FHFA data), a mild pullback won’t erase most of that growth.

What This Means for You
Waiting for a major crash may mean missing your window. Prices should stay steady or inch up—so partner with a knowledgeable advisor to understand your local trends.

Are Mortgage Rates Coming Down?

Many plan to wait for rates to fall before buying—but that strategy carries risks:

• Substantial rate drops aren’t on the horizon. Yahoo Finance warns:

“If you’re looking for a substantial interest rate drop in 2025, you’ll likely be left waiting.”

• Projections hold rates in the mid-6% range through year-end.

That’s roughly where they sit today—so postponing in hopes of big cuts could cost you more over time.

What This Means for You
Don’t let perfect conditions become the enemy of progress. If moving supports your goals now, let’s discuss strategies to navigate today’s rate environment and maximize your buying power.

The Takeaway for Buyers and Sellers

2025’s market is more balanced than it may first appear. Moderate price gains and steady rates point to transition, not turmoil.

• Buyers: Focus on your budget, timeline, and long-term goals.
• Sellers: Take advantage of still-strong demand in many markets.

Trying to time the market perfectly often leaves you stuck. Instead, let your personal needs guide your decisions.

At The CL Team, we’re here to help you make confident choices in any market. Connect with us and we'll help to break down the numbers, explore your options, and plan your next step with clarity.