What’s Ahead for the Housing Market? Here’s What to Expect in the Second Half of 2025

Is Now a Smart Time To Move? Here’s What the Experts Are Saying.

Between fluctuating mortgage rates and shifting home prices, it’s no wonder buyers and sellers alike are wondering: Should I make a move right now—or wait it out?

Fortunately, some of the most trusted voices in housing are offering insight into what’s ahead for the 2025 market. And while uncertainty still lingers, the latest forecasts suggest a more balanced, slightly more optimistic picture than many expected.

Let’s take a closer look at the trends to watch:

1. Mortgage Rates May Ease—Even If Just a Bit

Rates aren’t expected to plummet overnight, but a modest decline could still be on the horizon. As inflation cools and the economy stabilizes, many forecasters are projecting a slight dip in mortgage rates by the end of the year:

Even a small rate reduction could bring meaningful savings—lowering monthly payments and giving buyers a bit more flexibility in their budget. Just keep in mind that rates are influenced by many factors, and some volatility is still likely. Trying to “time the bottom” of the market can backfire—so if a move makes sense for your life right now, the smart strategy is to stay informed and be ready to act when the time feels right.

2. Inventory Is Growing—and That’s Good News

One of the biggest market shifts this year has been the increase in housing inventory. After sitting on the sidelines for months, many would-be sellers are finally deciding to list. Some are relocating for lifestyle reasons, while others are simply tired of waiting for the “perfect” interest rate to return.

🏡 According to industry experts, that trend is expected to continue—giving buyers more options and helping to create a healthier, more balanced market. As Lance Lambert, Co-Founder of ResiClub, puts it:

“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 rates soften as projected, it could give even more sellers the confidence to re-enter the market—creating more opportunity on both sides of the transaction.

3. Home Prices Are Stabilizing

Despite economic shifts, home prices haven’t fallen off a cliff. In fact, most forecasts still expect prices to rise modestly—just not at the breakneck speed we saw over the past few years.

The average of all seven major forecasts points to roughly 2% growth in home prices this year. For buyers, that could mean less sticker shock. And for sellers, it’s still a positive sign of equity growth.

It’s also important to remember: real estate is local. Some markets may see prices flatten, while others experience stronger gains depending on supply, demand, and neighborhood desirability. A local expert can help you interpret the trends where they matter most—your zip code.

So… Should You Move?

If you’ve been holding your breath waiting for the “perfect” market, this may be your sign to exhale. Between easing rates, rising inventory, and a more measured pace of home price appreciation, the second half of 2025 could present a window of opportunity—whether you’re buying, selling, or both.

👋 Ready to explore your options? Let’s talk about what these trends mean for your move—and how to make the most of them.