“Hyper-Local” Market & 2025 Market Forecasts
Can you believe we’re already halfway through 2025?
As summer rolls in, a lot of buyers and sellers are wondering the same thing:
What’s coming next for the housing market?
No one has a crystal ball, but experts from places like Fannie Mae, Zillow, and the National Association of Realtors have shared their latest predictions. They’ve looked at everything—home prices, mortgage rates, sales, and when the market might fully bounce back.
🔑 Home Prices: Small Gains, But It Depends on Where You Live
Most experts agree that prices will go up a little—but how much depends on your location. Some areas might even see a dip.
Here’s what different sources are saying about 2025:
Cotality: +4.3% (April 2025 to April 2026)
Fannie Mae: +4.1%
HPES (Home Price Expectations Survey): +3.3%
NAR: +3% this year, +4% next year
MBA: +1.3% this year, less than 1% in 2026
Zillow: -1.4% (which is actually better than their last guess of -1.9%)
Overheated markets like Florida, Texas, Hawaii, and D.C. are seeing prices cool down.
On the flip side, more affordable spots in the Midwest and Northeast are holding steady, especially suburbs just outside big cities.
🏡 Home Sales: Gradual Growth
Sales are picking up slowly, and things are expected to keep improving through the rest of the year.
Here’s what the experts predict for 2025:
NAR: +6% (with even more growth—+11%—in 2026)
Fannie Mae: +4.4% (about 4.24 million sales)
MBA: About 4.3 million
Zillow: +1.4% (around 4.12 million homes)
More listings and slightly lower rates are giving people more options.
💸 Mortgage Rates: Still High, but Easing Slowly
If you're holding out for 5% rates… you might be waiting a while. But things are slowly heading in the right direction.
What they’re saying for the rest of 2025:
MBA: 6.6% in late 2025, dropping to 6.3% in 2026
NAR: 6.4% this year, 6.1% next year
Fannie Mae: 6.1% by the end of the year, 5.8% next year
Lawrence Yun from NAR says mortgage rates are the “magic bullet” that could really get the market moving again—especially for first-time buyers.
💬 So What Does This Mean for You?
Here’s the short version:
The market is recovering—but slowly.
Most experts expect small price increases and a steady rise in sales through the end of the year.
Rates will likely stay above 6%, so buyers still need to budget carefully.
But keep this in mind: national numbers are just averages. What really matters is what’s going on in your city, in your neighborhood, and at your price point.
Even in the same zip code, different price ranges can behave totally differently.
