As the spring real estate season ramps up, Zillow’s latest housing market forecast offers some eye-opening insights for 2025. Here’s what you need to know—and how you can use this to your advantage whether you’re buying, selling, or renting.
Home Prices on the Decline
Zillow has adjusted its home value forecast, now predicting a 1.9% drop in home prices by the end of the year. This shift from an earlier projected increase reflects a growing inventory of listings and persistently high mortgage rates. With more homes hitting the market and fewer buyers rushing in, sellers are beginning to cut prices at record rates to stay competitive.
What this means for you: Buyers may find more wiggle room on pricing, while sellers need strategic pricing and smart marketing to stand out.
Sales on the Upswing
Despite price declines, existing home sales are expected to rise by 3.3%, reaching 4.2 million in 2025. Zillow anticipates a burst of activity this spring before things cool down seasonally later in the year. Should mortgage rates ease and home prices continue to soften, we could see affordability improve and fuel even more buyer activity.
Good news for buyers and sellers alike: More inventory means more choice, and more transactions mean opportunity—if you’re prepared.
What About Rentals?
Rental trends are shifting too. Single-family home rents are forecasted to increase by 3.1%, while multifamily rents are expected to grow more slowly at 2.1%. As apartment construction slows and economic pressures persist, more people are choosing to rent homes rather than buy—especially families waiting for prices to stabilize.
Key takeaway: Demand for single-family rentals is rising. If you’re considering investing, now might be the right time to explore rental property opportunities.
What Should You Do Next?
Whether you’re thinking about buying, selling, or investing, the market is changing fast—and knowledge is your edge.
📞 Contact us today to schedule a personalized market consultation and learn how to take advantage of today’s shifting trends.
📩 Or drop us a message, and let’s talk strategy over coffee.
