2025 Housing Market Predictions: What Lies Ahead?
The housing market is not just about numbers—it’s about dreams, transitions, and finding that special place to call home. As we look toward 2025, the latest forecasts offer a mix of possibilities for buyers, sellers, and real estate professionals navigating this evolving landscape.
Realtor.com predicts a modest 1.5% increase in home sales, reflecting a careful pace of change. On the other hand, the National Association of Realtors (NAR) shares a more hopeful vision, projecting a 9% increase. When it comes to home prices, Wells Fargo leads with a 4.9% growth forecast, while other predictions suggest steadier, more gradual appreciation.
These numbers may guide decisions, but behind every sale is a story of transformation—a family growing, an empty nester starting a new chapter, or someone finding the courage to take their first step into homeownership.
I've gathered the latest projections on sales, prices, inventory, and mortgage rates into simple, clear charts to support your journey. Whether you’re buying, selling, or simply curious, these insights can help you understand the trends shaping the market.
The future of real estate isn’t just about transactions—it’s about people, connection, and finding your true home.
Let’s explore what’s next, together.
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For this roundup, forecasts and data were compiled from the following sources:
National Association of Realtors and NAR’s Quarterly Housing Market Outlook
Fannie Mae’s Home Price Expectation Survey and Housing Forecast (table)
Business Insider (via Goldman Sachs)
Let’s get started.
Home Price Forecasts for 2025
Zillow forecasts 2.6% home value growth in 2025, while Realtor.com predicts a 3.7% increase, consistent with growth trends since 2012.
Wells Fargo has the most bullish forecast with 4.9% annual growth in home values for 2025, while Mortgage Bankers’ Association (MBA) stands out as the most bearish of the analysts in the chart below, with a forecasted annual growth rate of 1.5%.
Zillow forecasts 2.6% home value growth in 2025, while Realtor.com predicts a 3.7% increase, consistent with growth trends since 2012.
Wells Fargo has the most bullish forecast with 4.9% annual growth in home values for 2025, while Mortgage Bankers’ Association (MBA) stands out as the most bearish of the analysts in the chart below, with a forecasted annual growth rate of 1.5%.
Inventory Forecasts for 2025
Analysts agree that housing inventory will continue to rise in 2025—with HousingWire projecting annual growth of 13%, followed by Bright MLS at 12.5% and Realtor.com at 11.7%.
Mortgage Rate Forecasts for 2025
Of the nine analysts with updated mortgage rate forecasts for 2025, HousingWire stands out with a projected range of 5.75% to 7.25%, averaging out to 6.5%, which is the highest (or most conservative) average of all the forecasts in the chart below.
The National Association of Realtors (NAR) is forecasting the lowest average rate at 5.9% for 2025, while Bright MLS predicts an ambiguous “above 6%.” Zillow and Freddie Mac both expect a “gradual decline” in rates. Goldman Sachs predicts a 6.1% rate for the end of 2025.
1️⃣ Steady Home Prices AheadExperts forecast stable home prices in 2025. While the explosive growth of past years has cooled, prices are expected to remain resilient due to low inventory and high demand. This is great news for homeowners! 🏘️✨
2️⃣ Mortgage Rates: A Gradual Decline?📉 Mortgage rates may see a modest dip, offering some relief to buyers. While a drastic drop isn’t expected, this slight easing could make homeownership more accessible for those waiting to jump into the market. 🏦💡
3️⃣ Inventory Challenges PersistThe inventory crunch continues. Builders face labor and material shortages, which keep new construction slow. 🏗️ This means buyers need expert guidance to navigate the competitive landscape. 🤝
4️⃣ Opportunities in Shifting Trends🏙️ Suburban appeal stays strong, but urban areas may see renewed interest as companies adjust remote work policies. Savvy clients could capitalize on these shifts. 🌆💼
💡 Takeaway for Clients:2025 offers a balanced market. Whether buying or selling, the key is strategy—understanding the trends and working with a knowledgeable agent to make informed decisions.
