As we enter the second half of 2025, many buyers and sellers are asking the same question: What’s next for the housing market?
Whether you’re considering buying your first home, planning to move up, or thinking about selling, understanding the latest market forecasts can help you make more informed decisions. Here’s what the experts are saying about where things are headed — and how it may impact your plans.
Mortgage Rates: A Slight but Welcome Decline
After a period of volatility in recent years, mortgage rates are finally showing signs of stabilizing. Most industry analysts project a modest decline in rates during the second half of 2025. While we’re unlikely to see a return to the historically low levels of the past, even a small drop can increase affordability and buying power for many households.
Bottom line: Lower rates could spark renewed buyer interest and create more favorable conditions for those ready to purchase.
Inventory: Slow but Steady Improvement
The housing inventory shortage has been a challenge for years, but signs point to a gradual recovery. Builders are accelerating new construction, and more existing homeowners are choosing to list their homes. This slow-but-steady rise in inventory should offer buyers more options and reduce some of the intense competition seen in previous seasons.
Good news for buyers: A wider selection means more chances to find the right home without having to rush into a bidding war.
Home Prices: Cooling, Not Crashing
Price growth is expected to continue, but at a much slower pace than in recent years. Instead of the double-digit appreciation we saw during the peak of the pandemic market, experts anticipate more moderate, balanced growth. This is a positive indicator of a healthier, more sustainable housing market.
Sellers, take note: Price your home realistically and competitively. Buyers are watching the market closely and are more price-sensitive than before.
What This Means for You
- If you’re buying: Improved inventory and slightly lower rates may make this a great time to re-enter the market.
- If you’re selling: Demand remains strong, especially for well-priced homes in desirable locations. A strategic pricing and marketing plan will be key.
- If you’re unsure: Navigating market shifts can be tricky. Partnering with a local expert can help you interpret the data and align your move with your goals.
Let’s Talk About Your Next Move
The second half of 2025 is shaping up to be a more balanced and approachable housing market — but that doesn’t mean it’s one-size-fits-all. If you’re thinking about making a move or just want to better understand what these trends mean for you, I’m here to help.
📩 DM me or fill in the form below — I’d love to help you plan your next steps with confidence.
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