2025 U.S. Housing Market: Key Insights & Trends
Moderate Home Price Growth
Experts anticipate continued appreciation, but at a more tempered pace:
J.P. Morgan expects prices to rise around 3% in 2025. Mortgage rates should slightly ease to about 6.7% by year-end.
iShares forecasts approximately 5% home price growth, bolstering consumer spending through a "wealth effect."
Forbes Advisor reports S&P CoreLogic’s tracking at a 2.7% annual gain in April—the slowest rate since mid-2023.
Mortgage Rates Stuck High, Slowly Improving
HomeAbroad projects rates stabilizing in the 6.4%–6.6% range, as inflation cools and the Fed eases monetary policy.
U.S. News suggests rates will likely remain between 6%–7% in 2025, with potential easing in late 2025 or 2026.
Inventory Grows, but Supply Still Tight
HousingWire sees a 13% increase in inventory, with home sales projected at 4.2 million—still below the two-decade average.
HomeAbroad also notes a rise in both new and existing listings, improving buyer options.
Yet Forbes cautions stock remains below healthy levels, safeguarding against a crash despite the slowdown in price growth.
Buyers Return—but Affordability Still a Challenge
Increased inventory and marginally lower rates could draw more buyers off the sidelines.
Affordability remains tight, especially for first-time buyers, though any rate declines would help.
Investment & Market Sentiment
Goldman Sachs indicates no crash is expected, advocating vigilance but noting domestic housing market resilience
U.S. News and Morningstar highlight a shift toward slower but steadier sales growth, with longer-term structural trends like demographics and changing household types shaping the market
