How is the current housing market? Watching Trends in 2025

What does this mean for home sellers?

Here are a few ways home sellers benefit from the housing market in 2025:

Prices may drop as inventory stagnates

An imminent recession, high mortgage rates and other economic headwinds have left potential buyers stranded off-market, leaving housing stocks unmovable. As a result, the agent predicts that house prices will fall as the sell method case pushes buyers forward the transaction.

According to Homelight’s most recent top Agent Insights report, 82% of agents see more home prices than this time in 2024. This is especially true in the mountainous and Pacific regions of the country, attributed to the highly unsustainable immigration trends of the pandemic.

Additionally, since sellers are more likely to offer offers, buyers will have more bargaining power at the negotiating table, which means you can get better deals in possible homes in the future.

Mortgage rates will remain high, but may become higher

While high mortgage rates keep buyers out of market access, lenders and agents told Homelight that despite concerns, the best time to buy a home is still now, as interest rates and mortgage rates may increase.

“Use the market’s strengths. Current sellers have to sell; they won’t test the market at a price. If you can afford a smaller home and build equity while taking advantage of interest tax benefits, that will help when you’re ready to upgrade to a larger home,” said Laura Uribe, loan officer in Santa Clarita, California.

Indeed, according to the National Association of Realtors, the median home price in the U.S. is $403,700, up 2.7% from the previous year.

Although prices in some markets are expected to fall in some markets, Fannie Mae expects home prices to rise 4% by the end of 2025 and to increase by 2% by 2026, according to real estate agents. This means those who own existing shares.

What does this mean for home buyers?

Many potential buyers sitting in the housing market in 2024 are eager to try this. However, affordability remains a major issue, especially for first-time home buyers. To get a better deal, it may be beneficial to consider the following strategies:

• Compromise certain needs: You may not get the exact home size, amenities, or upgrades you need, especially if stocks are still low. Working with the best performing real estate agent can also increase the likelihood of accepting your offer. Use Homelight’s Agent Matching Service to refer two or three top agents that best suit your home purchase needs.
• Expand your search area: This works very well if you can work remotely. If you consider alternative locations and neighborhoods, you may be more successful in finding an affordable home.
• Explore the first-time homebuyer assistance program: We provide a handy guide for first-time homebuyer programs to help you get on the real estate ladder. While several of these plans are available to homeowners across the country, you can learn more about state or city-specific plans by consulting a mortgage professional.
• Pre-approval of mortgage: Before you start a home search, you should pre-approve your mortgage to figure out what home you can afford. (Tip: Homelight’s affordability calculator can give you a general idea.) Mortgage prediction is based on your financial status and credit checks. Having previous home buyers are more attractive to sellers because once they make an offer on the home, their financing is unlikely to fall.

Growth trends in digital real estate services

Digital real estate services, especially AI, are changing the way the industry works. In our recent AI reports, 80% of agents said they use AI tools to generate listing descriptions or marketing copies.

“My AI assistant helped all my potential customers (buyers and sellers) make calls and showed agents the calls to get feedback,” said Paul Avratin, Tennessee.

“It’s also the incoming text and calls for information in my list of my riders. I love how I’m much better about the family voice than when I wrote myself.”

Consumers are increasingly leveraging fast, simple and convenient online services, such as those provided by HomeLight:

• House Value Estimator: Learn what your home is worth by answering some simple questions.
• Affordability Calculator: Figure out how many homes you can afford based on your income, savings, debt, credit scores, and more.
• Net Income Calculator: Estimate the cost of selling a home and how much money you can make from the sale.
• Proxy Match: Contact two to three best performing agents in your desired market that are suitable for your home purchase or sale needs.
• Simple Sales: Get competitive all-cash offers for your home and close in just 10 days without repairs or preparation. First, answer some questions and you will receive an unobligated offer within about a week.
• Purchase before sale: Unlock the interests of your home to purchase all cash-free and accidental new homes. Sell ​​your current home vacancy at a reduced hassle price. Plans available on our websites in the United States or ask your agent about homelight purchases before selling.
• Turn off the fee calculator: Learn how much is the summary settlement fee when you go home with your dream.

Another digital real estate service that continues to impact the industry is iBuy. Ibuyers (“I” stands for instant) have been around since the 2010s and are a reliable option for home sellers looking for fast cash offers.

Unlike us buying a home for cash companies, cash companies tend to buy a home and pay about 70% of the market value, such as Ibuyers like Opendoor and OfferPad looking for homes in good condition and paying about 90% of the market value while charging fees for their services.