Discover how home prices and buyer demand are expected to shift in 2025.


Right now, the No. 1 question I’m hearing is, “What’s going to happen to the housing market in 2025?” I completely understand why. Many had plans to move this year but held off due to higher mortgage rates and a slower market. This raises an important question: Will 2025 be any different? The short answer is yes, though it's unlikely there will be any dramatic shifts that completely upend the market. Today, I’ll cover the key predictions for mortgage rates, home prices, and buyer demand in 2025.

1. Mortgage rates will drop. One major change expected in 2025 is a decrease in mortgage rates, which will make homeownership more affordable. This shift could benefit many buyers who have been on the sidelines due to high interest rates.

“As affordability improves, more buyers are expected to re-enter the market.”

2. Home prices will increase slightly. While the market will see an increase in home prices, it's expected to be moderate. Experts predict a slight rise in home values, with an appreciation rate hovering around 4%. This modest increase will still offer value for sellers while keeping prices manageable for buyers.


3. More buyers will enter the market. As affordability improves, more buyers are expected to re-enter the market. This surge in demand will be particularly noticeable in the spring, a peak season for home sales, but will likely continue as affordability stabilizes throughout the year.


Looking toward the future, 2025 is set to offer a balanced and evolving housing market. With more affordable financing options and slightly rising home prices, potential buyers will find better opportunities. Whether you're buying or selling, staying ahead of these trends will position you to make the most of the coming year. If you need guidance, we offer free and no obligation consultation. Call me at 651-998-9829 or email me at kristin@holzgroup.com. Let's get you prepared for the 2025 market!