🏡 What’s Ahead for the Housing Market in the Second Half of 2025?

Are you wondering what to expect if you buy or sell a home in the second half of the year? The latest market forecasts give us some encouraging signs—and a clearer sense of direction for where the housing market is heading.

Here’s what the experts are saying:

📉 Mortgage Rates Are Expected To Ease Slightly

While rates have been a major factor in the market over the last couple of years, there’s reason to believe some relief is on the way. Experts project that mortgage rates should dip into the mid-to-low 6% range by year’s end, as more certainty settles into the broader economy.

As of May 13, 2025, here’s what projections show:

• Average of All 5 Forecasters: 6.46%

• Fannie Mae: 6.20% (most optimistic)

• MBA: 6.70% (on the higher side)

• Others, like Zillow and Wells Fargo, fall somewhere in between.

If you’ve been waiting for a slightly better rate to make your move—this shift could be the window you were looking for.

🏘 Inventory Will Continue To Grow

There’s good news for buyers: there are more homes to choose from. In fact, inventory is already up 30% compared to this time last year.

“The fact that inventory is rising year-over-year... strongly suggests that national active housing inventory for sale is likely to end the year higher.”
— Lance Lambert, Co-founder of ResiClub

And if mortgage rates continue to tick downward, we could see even more homeowners list their properties, giving buyers additional opportunities.

💰 Home Price Growth Will Moderate

While prices are still expected to rise overall in 2025, the pace of growth is slowing thanks to the increase in inventory. That’s welcome news for buyers concerned about affordability.

Here’s what the price forecasts look like:

• Fannie Mae: +4.1%

• HPES and CoreLogic: +3.3%

• MBA: +1.3%

• Zillow: -1.9% (the only negative forecast)

The average projection across all seven forecasts? +2.3%.

So, while home values aren’t expected to drop significantly, they’ll likely rise more gradually than in recent years—especially in markets with increasing supply.

📝 What Does This Mean for You?

Whether you're planning to buy your first home, make a move-up purchase, or finally sell your current property, now’s the time to start planning.

• Buyers: Expect more choices and a bit of pricing relief, especially as mortgage rates potentially decline.

• Sellers: With continued demand and slower but steady price growth, listing your home in a more balanced market can still be a very successful strategy.

📲 Let’s connect and talk through what this means for your plans. I’m happy to guide you every step of the way.

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