In 2025, home buyers should expect slower home value growth and mortgage rates that stay below some of the peaks seen in 2024, according to housing market predictions from Zillow.
Home values nationally are expected to grow 2.6% in 2025, based on the assumption that interest rates will stay around 6.5% and that more sellers will list their homes for sale.
Zillow predicts 4.3 million sales of existing homes in 2025, up slightly from the 4 million expected to sell in 2024.
The company also predicts mortgage rates will be lower by the end of 2025 than at the start of the year, with potential for peaks throughout the year.
“Buying a home in 2024 was surprisingly competitive given how high the affordability hurdle became,’’ Zillow Chief Economist Skylar Olsen said in a statement. “More inventory should shake loose in 2025, giving buyers a bit more room to breathe.”
Read more of Zillow’s housing market predictions here.
