📌 Mortgage Rates Are Still High but Stabilizing – In January 2025, the average 30-year mortgage rate was 6.71%, slightly higher than the previous month. However, experts expect rates to gradually ease later this year.
📌 Home Prices Are Still Rising, But Slower – The average home value increased by 2.7% year-over-year, reaching $355,328. This suggests that while prices aren’t dropping, they are appreciating at a more manageable pace.
📌 Low Inventory Is Keeping Prices Stable – A limited supply of homes is preventing prices from falling. With demand still strong, home prices are expected to hold steady or increase slightly in 2025.
According to top industry experts:
📈 Some predictions of home prices rising by 3.6% in 2025, followed by a 1.7% increase in 2026.
📈 Other's expectations of a 1.3% price increase in both 2025 and 2026.
Bottom line: A housing crash or price drop is unlikely this year. Instead, we can expect moderate and steady growth, which is a sign of a healthy real estate market.
🏡 Less Competitive Market – With slower price growth, buyers may have more time and options to find the right home.
🏡 Potential for Better Mortgage Rates – As rates stabilize, affordability could improve later in the year.
🏡 Smart Investments – Buying now allows you to build equity sooner, rather than waiting for prices to increase further.
📊 Home Values Are Holding Strong – Even though price growth is slowing, sellers are still benefiting from rising equity.
📊 Motivated Buyers Are Still in the Market – Buyers are adjusting to new market conditions, and homes that are priced competitively are still selling well.
📊 Proper Pricing is Key – Overpricing could lead to a longer time on the market, so working with a professional to set the right price is more important than ever.
✔ A housing market crash is unlikely – instead, expect moderate price increases.
✔ Buyers have more negotiating power as price appreciation slows.
✔ Sellers can still benefit from home equity gains and strong demand.
✔ Mortgage rates could ease later in 2025, improving affordability for buyers.
💬 Thinking about buying or selling? Let’s chat about the best strategy for your goals!
