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July 21, 2025
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Housing Market and Mortgage Forecast 2025: What Homebuyers Need to Know
As the real estate landscape evolves, understanding the shifting trends in housing markets and mortgage rates is crucial for potential homebuyers and investors. With an unpredictable year ahead, researchers are forecasting a mixed bag of outcomes for 2025. While some housing markets are experiencing price drops, others are witnessing a rise. The mortgage landscape is also expected to see significant changes, with projections of increased rates. This blog post dives into current market overviews, upcoming trends, and expert forecasts to help you navigate the complexities of real estate in the upcoming year. Whether you’re looking to buy, sell, or invest, staying informed on these trends will equip you to make well-informed decisions.
Market Overview
The current real estate market is displaying varied trends across different regions.
- Home prices are declining in certain areas while increasing in others, reflecting regional economic conditions and demand-supply dynamics.
- According to the Canadian Real Estate Association, there’s been a slight increase in housing market activity in Canada, illustrating a mild recovery.
- Median U.S. asking prices are showing minimal growth as sellers adjust to the current buyer’s market.
Trends in 2025
As we look forward to 2025, several key trends emerge:
- The industry expects a sharp increase in housing inventory which may offer some advantage to buyers as it balances the supply-demand scales.
- Mortgage rates are anticipated to reach historically high levels, exceeding 10%, which could impact affordability for many buyers.
- Despite the increase in interest rates, some markets, like Austin, are experiencing a slowdown in home sales, although pricing remains robust.
Projections and Predictions
Looking at expert forecasts for the housing and mortgage market in 2025:
- Analysis from Zillow suggests a potential fall in U.S. home prices by approximately 0.7% from May 2025 to May 2026.
- In contrast, the Dallas housing market is expected to see unique trends with variations in buying demands and price fluctuations.
- Experts advise that the affordability crisis in the UK could be mitigated by innovative lending solutions such as intergenerational mortgages and loans extending into retirement.
Resources
Here’s how regional housing markets are faring across Canada
Housing market activity posted another mild recent uptick across Canada, according to the Canadian Real Estate Association (CREA) – although…
Source: MPA Mag
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Good News For Homebuyers: Sellers Start Pricing Lower, Monthly Mortgage Payments Dip to 4-Month Low
The median U.S. asking price posted its smallest increase in five months as more sellers come to terms with the reality of today’s buyer’s…
Source: Redfin
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Housing Market Trends For Third Quarter 2025
Industry experts expect continued high prices in Q3, but a sharp increase in inventory is giving buyers a bit of an edge.
Source: Bankrate
Read more
