What Will the 2025 Housing Market Look Like?

Learn how 2025's real estate market will be impacted by interest rates, home prices, and buyer activity to make informed decisions about buying or selling.

If you’ve been waiting to buy or sell a home, the real estate market in 2025 may be your chance to make a move. Many people who wanted to buy in 2024 are still on the fence, wondering if 2025 will be a better time. The good news is, it might just be. Let me walk you through what to expect, so you’re ready to make a smart decision. Interest rates. Interest rates are a big factor in home affordability. If interest rates are high, your monthly payments go up. That means buying the same house becomes more expensive. The good news is, experts predict that interest rates will drop a little in 2025, possibly falling below 6%. If you’ve been thinking about buying, that drop could make a huge difference. A lower interest rate can help you save money and make homeownership more affordable. Home prices. While prices have been climbing at a rapid pace in recent years, they are expected to increase by only about 2% in 2025. That’s much more reasonable than the double-digit increases we’ve seen in the past. So, if you’re hoping for prices to plummet, you might be disappointed. But don’t worry—prices aren’t going to crash either. They’ll slowly rise, meaning that the earlier you act, the better deal you might get.

"The market will be more balanced, with homes that need work sitting on the market longer, but great homes will move fast."

Buyer demand is on the rise. As interest rates drop and home prices stay relatively steady, more buyers will start entering the market. Homes that are priced right, staged well, and in great locations will be snapped up quickly. If you’re selling a home, now’s the time to prepare. If you’re looking to buy, expect a bit more competition than before. Be ready to move quickly on a home that fits your needs. How to prepare for 2025. If you’re thinking about selling, get your home ready for the market early. That way, when prices dip slightly and buyers start making moves, you’re already in the game. If you’re buying, get pre-approved and start looking for homes. The market will be more balanced, with homes that need work sitting on the market longer, but great homes will move fast. If you're planning to buy or sell a home and you want to make sure you have the right strategy to face the market in 2025, you can reach us at 615-315-9223. We're here to help you navigate the market and make sure you’re ready to make the most of what 2025 has to offer.