The housing market has seen its fair share of twists and turns in recent years, leaving many homebuyers wondering what’s next. While market conditions may feel unpredictable, real estate experts are keeping a close eye on the trends shaping 2025 to help buyers make informed decisions.
“High interest rates, increased inventory, and moderating prices are creating a market where patient, informed buyers can find opportunities,” says Jon Howard, a mortgage loan originator with Lucid Lending. “The slower pace offers buyers time to explore their options and make decisions that align with their financial goals.”
If you’re considering buying a home in 2025, here are five trends that experts predict will define the market.
1. Homes Spending More Time on the Market
In recent years, homes were flying off the market within days of being listed, often selling well above asking price. That frantic pace is expected to ease in 2025. With more inventory hitting the market, homes may sit for longer, giving buyers more time to weigh their options.
“Inventory has been tight in recent years, driving rapid sales,” says Howard. “As the market adjusts, inventory is projected to increase, which should give buyers more choices and reduce the sense of urgency.”
However, highly desirable homes—those with updated kitchens, outdoor spaces, or in sought-after neighborhoods—will still sell quickly. Sellers who price their homes competitively and ensure they’re well-maintained are likely to stand out.
For more insights on how inventory impacts buying and selling, visit Lucid Lending’s market trends page.
2. Home Prices Stabilizing
After years of soaring home prices, experts predict a correction toward more reasonable levels in 2025.
“We’re seeing fewer homes selling above asking price, as bidding wars become less common,” Howard explains. “Buyers will have more negotiating power, though well-maintained, move-in-ready homes in prime locations will still attract strong offers.”
While prices are expected to moderate overall, buyers should still anticipate some competition for turnkey homes or those in highly desirable areas.
Check out Realtor.com’s Housing Market Forecast for 2025 for a deeper dive into price trends.
3. High Demand for Move-In-Ready Homes
Move-in-ready homes will be the hot ticket in 2025. Buyers, especially first-timers, are prioritizing homes that don’t require significant renovations.
“Higher mortgage rates mean buyers have less cash for repairs and upgrades, so turnkey homes will dominate demand,” says Howard. Multifamily homes are also gaining traction, offering affordability and opportunities for multigenerational living or rental income.
Additionally, low-maintenance features and energy-efficient upgrades are increasingly appealing to buyers—particularly millennials, who now make up the largest share of homebuyers. Homes with dedicated office spaces for remote work are especially desirable.
“Nearly 70% of buyers today prefer move-in-ready homes,” says Bryson Taggart of Opendoor. “These homes align with modern buyers’ need for convenience and practicality.”
Explore Opendoor’s 2025 Homebuyer Trends Survey to learn more.
4. Cautious Decision-Making Amid Economic Uncertainty
Economic uncertainty remains a key factor influencing the market. Concerns over inflation and fluctuating costs may lead buyers to take a more measured approach.
“Buyers are becoming more cautious, often taking longer to evaluate their options,” says Howard. “But even with hesitations, data shows many buyers are still motivated to act, especially with the potential for rising prices later in the year.”
Despite uncertainty, the demand for housing remains steady, with many buyers looking to take advantage of opportunities while they last.
Learn more about current buyer sentiments and economic impacts in Zillow’s Consumer Housing Trends Report.
5. Potential for Lower Interest Rates
Interest rates have been a major hurdle for buyers over the past year, but there’s hope on the horizon. Economists predict rates will gradually decline in 2025 as inflation eases, making homeownership slightly more affordable.
“Lower interest rates could encourage more buyers to re-enter the market or refinance existing mortgages,” says Michael Gifford, CEO of Splitero. However, he cautions that the relief may feel limited as essential living costs remain high.
For more on interest rate forecasts, read Realtor.com’s Economic Outlook for 2025.
Expert Advice for 2025 Buyers
If you’re planning to buy a home this year, timing and preparation are key.
- Spring Buying: Danielle Hale, chief economist at Realtor.com, suggests that spring offers the best balance of inventory and competition.
- Fall Deals: If you’re flexible, consider shopping in the fall, when buyers may have more negotiating power.
No matter the season, focus on your unique priorities. Make a list of must-haves and nice-to-haves to guide your search, and be ready to act when you find the right property.
“Real estate is personal,” Gifford says. “Your financial situation, lifestyle, and future goals should guide your decisions—not just the market trends.”
Final Thoughts
The housing market in 2025 offers opportunities for savvy buyers willing to take a thoughtful approach. As the market stabilizes, there’s room to find a home that fits your budget, lifestyle, and long-term goals.
If you’re ready to navigate the market, I’m here to help! Contact me today to start your home-buying journey.
