E
xperts predict that the real estate market in 2025 will be characterized by stable mortgage rates, an increase in housing inventory, and modestly rising home prices. While there won't be any drastic changes to the market, buyers can expect a more favorable environment.

    According to Rob Norman, eastern region president of Coldwell Banker Realty, it's recommended that buyers enter the market as soon as possible to benefit from home appreciation. "Don't wait," he advises. "History has not fared well for those who waited."

    Mortgage rates are expected to remain relatively stable in 2025, with some experts predicting a slight decrease. However, Bankrate Chief Financial Analyst Greg McBride notes that mortgage rates will likely be volatile and could touch 7% again.

    Realtor.com predicts an average rate of 6.3% for a 30-year fixed mortgage in 2025. Other housing forecasts suggest that mortgage rates will continue to fluctuate throughout the year.

    Experts also predict an increase in housing inventory, with Realtor.com forecasting an 11.7% increase in existing home for-sale inventory and the National Association of Realtors expecting a 9% increase in existing home for-sale inventory.

    Home prices are expected to rise at a more modest pace in 2025, with Realtor.com predicting a 3.7% increase and the National Association of Realtors forecasting a 2% increase. Norman notes that real estate has traditionally been a good investment, but cautions against trying to time the market.