What to Expect in the Housing Market for the Second Half of 2025

What to Expect in the Housing Market for the Second Half of 2025

As we move into the latter half of 2025, many homebuyers, sellers, and real estate professionals are watching market indicators closely. According to recent projections, there are several key trends expected to shape the housing landscape in the coming months. Let’s break down the highlights from the latest housing market forecasts.

1. Mortgage Rates Are Expected to Ease Slightly

One of the most talked-about topics in real estate has been mortgage rates—and there's some good news ahead. Experts are forecasting that mortgage rates should settle into the mid-to-low 6% range by the end of the year. As of May 13, 2025, here’s how the projections stack up:

• Average of all sources: 6.46%

• MBA: 6.70%

• NAHB: 6.58%

• Zillow: 6.50%

• Wells Fargo: 6.30%

• Fannie Mae: 6.20%

This expected easing could bring relief to buyers who’ve been on the sidelines due to affordability challenges.

 

What to Expect in the Housing Market for the Second Half of 2025

As we move into the latter half of 2025, many homebuyers, sellers, and real estate professionals are watching market indicators closely. According to recent projections, there are several key trends expected to shape the housing landscape in the coming months. Let’s break down the highlights from the latest housing market forecasts.

2. Inventory Will Continue to Grow

Housing inventory is another area showing positive momentum. Compared to this time last year, inventory is up 30%, giving buyers more options than they’ve had in a while.

Lance Lambert, Co-founder of ResiClub, states:

“The fact that inventory is rising year-over-year… strongly suggests that national active housing inventory for sale is likely to end the year higher.”

If mortgage rates do indeed decrease, even more homes may come onto the market as sellers feel more confident about their next move.

3. Home Price Growth Will Slow Down

With more homes available, the upward pressure on home prices is expected to ease. While prices are still expected to grow nationally, the rate of growth will likely moderate—though this will differ across local markets.

Here’s a look at 2025 home price growth forecasts (percent change as of May 13, 2025):

• Fannie Mae: +4.1%

• CoreLogic (Cotality): +3.3%

• HPES: +3.3%

• Wells Fargo: +3.0%

• NAR: +3.0%

• MBA: +1.3%

• Zillow: -1.9%

• Average of all 7: +2.3%

Notably, Zillow is the outlier, projecting a small decline. This underlines the importance of understanding your local market, as trends can vary widely by region.

What This Means for You

Whether you’re planning to buy, sell, or simply explore your options, these projections suggest a market that is becoming more favorable for buyers and less volatile overall. With more homes available and mortgage rates likely to ease, the second half of 2025 could offer new opportunities.

Ready to navigate the changing market?
Let’s connect and talk through your plans together!

 Are you wondering what to expect if you buy or sell a home in the second half of the year? Here’s what the expert forecasts tell you.

• Mortgage rates are expected to come down slightly. There will be more homes available for sale. And as inventory rises, home price growth will moderate.

• Want to know what this could mean for your plans? Let's connect and talk through it together.