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ealtor.com forecasts home prices will rise slightly in 2025, with a predicted increase of 3.7% and a median sale price jump of $15,000. This growth is expected due to the lack of recession, which typically causes home prices to fall. Buyers may expand their searches to more affordable areas, such as the Sunbelt, where twelve cities are projected to experience double-digit price appreciation.

    Mortgage rates will likely remain above 6% in 2025, with a predicted rate of 6.2% by the end of the year. Although interest rates have dropped slightly, they still haven't significantly affected mortgage rates. Realtor.com expects lower interest rates and steady growth next year, which may lead to a few more interest-rate cuts.

    Rent growth is expected to stall in 2025, with US apartment prices projected to fall by 0.1%. This decline is attributed to an increase in rental unit inventory, particularly in urban areas where new multi-family construction has been released. Landlords may struggle to raise rent substantially due to a strong economy and lower mortgage rates.

    The housing market in 2025 will likely be characterized by increased home and apartment supply. Realtor.com predicts an 11.7% jump in existing home inventory and a 13.8% surge in single-family home starts, ushering in the first "balanced" housing market in nine years. This should give prospective buyers more chances to secure a home.

    Home sales are expected to surge in 2025, with Realtor.com predicting a 1.5% increase. Lower mortgage rates and higher supply should spark a turnaround for home transactions. While the housing market may still favor sellers, more homes for sale can help buyers secure better deals and more concessions.