Housing Market Outlook: What to Expect for the Rest of 2025

If you’ve been following the housing market, you’ve likely noticed some changes already this year. But what’s ahead for the rest of 2025? Here’s what the latest expert forecasts say about home prices, mortgage rates, and what it all means for buyers and sellers.

Will Home Prices Drop?

Many hopeful buyers are waiting for prices to fall, but the reality is more nuanced. While some areas have seen slight dips, experts don’t predict a major nationwide decline. In fact, the average of eight top forecasts suggests home prices will still rise 1.5–2% this year.

According to the National Association of Home Builders (NAHB), price growth is slowing due to a combination of high mortgage rates and increased inventory. These factors are easing some of the upward pressure, but that doesn’t mean a crash is coming. The small declines seen in some markets—averaging around -3.5%—are minimal when compared to the nearly 20% drop during the 2008 crash.

Plus, zooming out shows a bigger picture: home values are up 55% nationally over the past five years, based on data from the Federal Housing Finance Agency. So even if prices level off, there’s still a lot of equity built in.

Will Mortgage Rates Go Down?

Mortgage rates are another hot topic—and many buyers are choosing to wait for them to fall. But that may not be the best plan. According to Yahoo Finance and recent Federal Reserve updates, rates are expected to stay in the 6% range through the end of 2025. Rather than trying to time the market, experts recommend making decisions based on your personal situation. A slight shift in rates won’t drastically change affordability—and delaying a move could mean missing out on a home that fits your needs now.

The 2025 market isn’t crashing—it’s just stabilizing. If you’re considering a move, work with a real estate professional such as myself who can guide you through your local trends and help you make the best decision based on today’s facts, not tomorrow’s guesses.

Do you want to discuss the current market trends and your moving plans? Contact me today, I am happy to help!