Housing Market Outlook: What Experts Say About the Rest of the Year

From fluctuating mortgage rates to steady home price growth, the housing market in 2025 continues to keep buyers and sellers on their toes. If you're wondering what the rest of the year may bring, housing experts are beginning to weigh in—and the outlook may be more optimistic than expected.

Business Insider offers a helpful summary:

“As mortgage rates go down this year, affordability may improve slightly for homebuyers. Inventory is also expected to grow, which should help moderate price growth and make finding a home easier.”

Let’s unpack what these trends mean for you.

1. Mortgage Rates Expected to Ease Slightly

While a dramatic drop in mortgage rates isn’t on the horizon, experts predict a gentle decline in the coming months as inflation cools and economic stability improves.

Forecasted Mortgage Rates by Year-End:

Even a modest dip in rates could reduce your monthly mortgage payment and increase your overall purchasing power. That said, mortgage rates remain sensitive to economic shifts, so some volatility is still likely. Rather than trying to time the market perfectly, focus on being financially prepared to act when the opportunity arises.

2. Inventory Levels Continue Their Upward Climb

Housing inventory has already improved in early 2025, and experts expect that trend to continue through the end of the year. Many sellers who delayed listing their homes in recent years are now re-entering the market.

Lance Lambert, Co-founder of ResiClub, explains:

“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 more homeowners decide to list this summer and fall—especially if rates edge lower—you’ll likely have more options when searching for your next home.

3. Home Price Growth Is Slowing

With more homes for sale, the intense pressure on prices is beginning to ease. Expert projections still expect home values to rise, but at a slower, more sustainable pace.

2025 Home Price Growth Forecast (Average of 7 Sources):

That’s a welcome change for buyers who've been navigating high prices. Slower appreciation combined with lower interest rates could create a window of improved affordability—though this will vary by market.

Keep in mind that real estate is highly local. Some markets may continue to see rising prices, while others with more supply may experience flat or even slightly declining values. A local real estate professional can help you interpret what’s happening in your area.

Bottom Line

The housing market is showing signs of balance, with modest rate relief, more inventory, and steadier price trends. If you’re thinking about buying or selling, the second half of 2025 could bring the opportunity you’ve been waiting for. Let’s connect and create a strategy to make the most of these shifting conditions.