2025 Housing Market Outlook: What Our Team Sees Ahead

According to Keeping Current Matters, the second half of 2025 is shaping up to be an encouraging time for both buyers and sellers. As a team of dedicated real estate professionals, we're seeing clear signs that the housing market is moving in a positive direction — and we're here to help you take full advantage of it.

Here's our take on what to expect and how you can benefit from upcoming trends.

Mortgage Rates Are Slowly Trending Down

One of the most frequently asked questions we hear is, "What's happening with mortgage rates?" The good news is that most experts — including Fannie Mae, Freddie Mac, the Mortgage Bankers Association (MBA), and the National Association of Realtors (NAR) — are forecasting a slow and steady decline throughout the rest of the year.

Rates may not return to the record lows we saw during the pandemic, but they are expected to become more manageable. For buyers, that means improved affordability. For sellers, that means more motivated buyers entering the market. It's a win-win.

Inventory Is Growing, Giving Buyers More Options

Keeping Current Matters also points out that inventory is on the rise. In fact, Realtor.com® predicts a nearly 12% increase in the number of homes for sale compared to last year.

As a real estate team actively working in the field, we can already feel this shift. More homes are hitting the market, giving buyers more options and easing some of the intense competition we've seen over the past few years. If you've been waiting for the right time to buy, this could be it.

Home Prices Are Still Appreciating — Steadily

Home prices are continuing to rise, but at a slower, healthier pace. Experts are projecting an average national increase of around 3.7% this year.

For sellers, that's great news — your equity is still growing. And for buyers, slower price growth means the market is becoming more balanced and less volatile. We're moving away from the extremes and into a more predictable, stable real estate environment.

Millennials and Gen Z Are Driving Demand

A major driver of today's housing market is the growing number of Millennial and Gen Z buyers entering the market. These younger generations are motivated, tech-savvy, and looking for homes that fit their lifestyles, from remote work setups to multigenerational living spaces.

We always advise our sellers to think about what appeals to these buyers. Highlighting features like home offices, updated kitchens, and energy-efficient upgrades can really make your home stand out in today's market.

New Construction Is Expanding Choices

Builders are responding to demand by increasing construction, especially of smaller, more affordable homes. This is especially important for first-time buyers who have struggled with limited options.

The increase in new builds not only expands choices for buyers but also helps balance out supply in the broader market. We're seeing a healthier mix of new and existing homes, which benefits everyone.

The Economy Is Supporting Market Activity

Strong job growth, rising wages, and steady consumer confidence are all helping to keep the real estate market moving. Many homeowners who've been holding off due to high mortgage rates are now reconsidering, especially as those rates begin to ease.

If you're one of those homeowners wondering whether it's time to make a move, we'd love to talk with you. The second half of 2025 might be exactly the right window you've been waiting for.

What This Means for You

Here's what we're telling our clients:

• Buyers: You'll likely see lower mortgage rates, more inventory, and less competition. It's a good time to make a smart move — especially if you've been sitting on the sidelines.

• Sellers: Prices are still climbing, buyer demand is solid, and homes that are well-priced and well-presented are still moving quickly. This is a prime time to list and get strong results.

Whether you're looking to buy your first home, upgrade to your forever home, or downsize into something more manageable, there are real opportunities in today's market.

Let's Make a Plan Together

As your trusted real estate team, we're here to guide you through every step of your journey with clarity, experience, and a positive outlook. The second half of 2025 holds plenty of potential, and we'd love to help you take advantage of it.

Thinking about making a move this year? Let`s connect and talk through your goals. We're ready when you are.

Source: keepingcurrentmatters.com