Page 9 - Spring-2025-Sellers-Guide

Will Home Prices Fall?

The short answer? Not likely. While mortgage rates are expected to ease a bit, home prices are
projected to keep climbing in most areas — just at a more normal, sustainable pace. If you
average the expert forecasts together, you’ll see prices are expected to go up about 3% in 2025,
with most of them hitting somewhere in the 3 to 4% range (see graph below ):

2025 Home Price Forecasts

Percent Appreciation as of 2/26/2025

4.9
4.5 4.4
4.1 4.0 4.0 3.9 3.8 3.7
3.5 3.5 3.5
2.7 3.1 3.0
2.3
2.0 2.0
1.7 Moody’s Analytics
1.3 1.1 Morgan Stanley
0.6

Average of All 22 Wells Fargo AEI Housing Center Goldman Sachs CoreLogic Capital Economics Redfin First American HPES Realtor.com ATTOM Fannie Mae HousingWire Bright MLS JP Morgan Zelman & Associates Bank of America NAR Zonda MBA Zillow Freddie Mac -0.4 -2.0

So don’t expect a sudden drop that’ll score you a big deal if you’re thinking of moving this year.
While that may sound disappointing if you’re hoping prices will come down, refocus on this. It
means you won’t have to deal with the steep increases we saw in recent years, and you’ll also
likely see any home you do buy go up in value after you get the keys in hand. And that’s actually
a good thing.

Keep in mind, though, the housing market is hyper-local. So, this will vary by area. Some markets
will see even higher prices. And some may see prices level off or even dip a little if inventory is
up in that location. In most places though, prices will continue to rise (as they usually do).

Bottom Line

Let’s talk so you can get the scoop on what’s happening in our area and advice on how to
make your next move a smart one.

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