E
xperts predict a slowdown in home price increases for the 2025 summer selling season, shifting the market's favor from sellers to buyers. With more homes on the market compared to last year, buyers now have more options. The housing market has experienced ups and downs since the COVID-19 pandemic, but it appears to be changing again.

    Ahead of the 2025 summer selling season, home prices are expected to slow down, low mortgage lock-ins will ease, and the power may transition from sellers to buyers. Experts predict that prices will rise only slightly in 2025, with the Mortgage Bankers Association forecasting a 1.3% increase and Fannie Mae economists predicting a 4.1% gain.

    Buyers who previously avoided purchasing new homes due to high mortgage rates are now more likely to take on a new mortgage. As of the fourth quarter of 2024, over 70% of outstanding mortgages had a rate below 6%, making it easier for people to move and take on a new mortgage at prevailing rates.

    Buyers have a lot more options now, with Realtor.com data showing that there were nearly 40% more active listings in April compared to last year. The median home price has also dropped 1.9% from last year's April numbers. Sellers are making more price cuts due to homes staying on the market longer, with 18% of home listings having price reductions in April.

    In Tennessee, the housing market is changing as expected, with median house sales prices up 3.2% compared to last year but sales down 4%. The median time spent on the market has also increased, hitting a five-year high in February. However, homes are spending less time on the market overall, with Realtor.com data showing that they spent a median of 52 days on the market in April.