2025 Housing Market Forecast

The US housing market is forecast to recover over the next two years, with the number of sales reaching 5.6 million in 2025. (Statista Research)

Modest Appreciation: Zillow forecasts a 2.6% increase in home values for 2025, aligning with the growth observed in 2024. Source: Zillow

Increased Sales Activity:  The National Association of Realtors (NAR) anticipates a 9% rise in home sales for 2025, followed by a 13% increase in 2026, driven by improved economic conditions and employment rates. Source: NAR Forecast

Higher Rates Are Here To Stay: Mortgage rates should remain above 6% in 2025.  Analysts expect minor fluctuations and volatility, based on economic conditions.
Source: Yahoo Finance

More Buyers Entering Market:  The record low inventory of homes for sale is what continues to drive prices higher.  Any dips in mortgage rates is expected to bring even more buyers into the market.

The Cost of Waiting:  We advise homebuyers to carefully consider the costs of waiting and to consult with a mortgage professional. Any potential savings from slight decreases in interest rates are generally outweighed by the higher purchase prices buyers end up paying.