If you've been paying attention to real estate trends, you've likely noticed some subtle shifts already in 2025. So, what’s ahead? From home values to mortgage rates, here’s what leading experts predict for the rest of the year—and how that could positively impact your next move.

Will Home Prices Fall?

Many potential buyers are still hoping for a significant drop in home prices. And with recent headlines highlighting small price dips in some regions, it’s understandable that some are holding out. But here’s what the data is really showing.

While the pace of home price growth has certainly cooled, that doesn’t mean we're heading toward a downturn. According to the National Association of Home Builders (NAHB):

“House price growth slowed . . . partly due to a decline in demand and an increase in supply. Persistent high mortgage rates and increased inventory combined to ease upward pressure on house prices. These factors signaled a cooling market, following rapid gains seen in previous years.”

Even with that cooling, national home prices are still projected to rise modestly this year. The average forecast from eight leading analysts expects an increase of 1.5–2% in 2025 (see graph below).

This means that if you're waiting for a major price drop, most experts agree that’s unlikely. Some markets may see small declines, but the average decrease is only about -3.5%—a stark contrast to the nearly 20% plunge seen during the 2008 housing crisis.

Additionally, these minor shifts are relatively small when you consider how much home values have surged over the past few years. Data from the Federal Housing Finance Agency (FHFA) shows that home prices are up 55% nationally compared to just five years ago.

The bottom line? We're seeing a more balanced market, not a bubble. Prices may not be rising as quickly, but they’re still trending up overall. Some areas may experience stagnation or incremental changes, but that will vary depending on local conditions. That’s why leaning on a local real estate expert is the best way to understand what’s happening in your neighborhood.

Will Mortgage Rates Come Down?

Another common question among buyers is whether they should hold off on purchasing until mortgage rates drop. But is that strategy really in your best interest?

As Yahoo Finance explains:

"If you’re looking for a substantial interest rate drop in 2025, you’ll likely be left waiting. The latest news from the Federal Reserve and other key economic data point toward steady mortgage rates on par with what we see today."

In short, experts don’t anticipate a dramatic decrease. Most forecasts suggest mortgage rates will remain in the 6% range, possibly settling in the mid-6% area by the end of the year (see chart below).

That’s not a significant shift from where we are now. So, if moving makes sense for your lifestyle or financial goals, there’s no need to wait. Now is a great time to explore your options and create a plan based on current realities—not hypothetical market timing.

Navigating today’s mortgage environment is all about understanding the macroeconomic factors that influence rate movement. Inflation trends and other financial indicators will continue to play a role, so working with a knowledgeable expert who can help you interpret these shifts is essential.

The Takeaway for Buyers and Sellers

Whether you're planning to buy, sell, or both, the 2025 market calls for thoughtful strategy rather than guesswork. National home prices are still on the rise, albeit at a slower pace, and mortgage rates are expected to remain steady. Altogether, this paints a picture of market moderation—not volatility.

Bottom Line

If you're considering a move, your best approach is to focus on your personal goals and work with a trusted real estate professional who understands your local market. The data suggests a stable, balanced environment—so make your move with confidence.

For personalized guidance and expert insight into your area’s market trends, reach out to Mike Panza and the team at Panza Home Group. They’re here to answer your questions and help you make informed decisions every step of the way.

Learn more or get in touch: https://panzarealestate.com/team/mike-panza