No hype… just the facts buyers and sellers are asking about this year.
What’s Changing (and What’s Not)
If you’ve been following the headlines, you’ve probably heard mixed messages about where the housing market is headed. Some say prices are about to crash… others say they’ll keep rising. Here’s what the data actually shows for 2025.
Will Home Prices Drop?
It’s a fair question, especially for buyers hoping to see lower prices. But when you zoom out, the bigger picture looks like this:
- Price growth is slowing down, not falling apart.
- National forecasts show a 1.5–2% increase in 2025.
- Some local markets might see small dips (around -3.5%), but nothing close to the big drops we saw in 2008.
So price growth is slowing down, but that doesn’t mean prices are falling off a cliff. According to the National Association of Home Builders (NAHB):
“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.”
Bottom line… the market is cooling, not crashing.
What About Mortgage Rates?
Rates are another big question mark. A lot of folks are waiting for them to drop before they make a move. But experts predict they’ll hold steady in the mid-6% range through the end of 2025.
That means if you’re waiting for a big shift, you might be waiting a while.
What This Means for Buyers and Sellers
The takeaway? Stop chasing the “perfect” market. Focus on your own timeline and goals instead. Whether that’s moving up, downsizing, or buying your first home, planning around your life is more reliable than planning around headlines.
Next Steps
If you want to dig deeper into what’s happening locally, connect with me here. We’ll walk through your numbers and figure out the next step that fits you best.
