What are the existing home sales projections for 2025?

Existing home sales are projected to rise slightly in 2025, though they remain below historical norms. The market is showing returning momentum as conditions gradually improve, with more buyers entering the market as they adjust to elevated interest rates.

What are current mortgage rates in 2025?

30-year fixed mortgage rates are hovering around 6.5-7% in mid-2025. While elevated compared to the ultra-low rates of 2020-2021, the rates have shown stability, providing predictability for buyers planning their purchases and helping the market find a new equilibrium.

Is the housing market shifting to favor buyers or sellers in 2025?

The market is gradually shifting toward buyers as inventory rises. Active listings are up significantly compared to the previous year, with over 180,000 more homes available. This increased supply is giving buyers more options and negotiating power, though the market hasn't fully transitioned to a buyer's market in all regions.

Are home prices falling in 2025?

Home prices are showing early signs of softening with slight declines in median prices in some markets. However, price trends vary significantly by region. Some areas are experiencing modest declines while others maintain stability or slight growth. The overall trend suggests a cooling from the rapid appreciation of previous years rather than a dramatic crash.

Should I buy a home in 2025 or wait?

For buyers, 2025 presents opportunities with rising inventory, more negotiating power, and stable (though elevated) rates that allow for better planning. If you're financially prepared and find the right home, waiting for perfect conditions may mean missing opportunities. For sellers, homes that are well-priced and well-presented still sell, though expectations may need adjustment compared to the ultra-hot market of recent years.

How has housing inventory changed in 2025?

Housing inventory has increased significantly in 2025, with over 180,000 more active listings compared to the previous year. This rise in available homes is shifting market dynamics, giving buyers more choices and reducing the intense competition that characterized the seller's market of recent years.

Jerry Dalton, Author at Jerry Dalton

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