The 5 Biggest Factors Influencing the Housing Market in 2025
As we look ahead to 2025, many buyers and sellers are wondering: What’s next for the housing market? According to Zillow, home prices are expected to grow at a more moderate pace, with a projected 2.6% national increase and an estimated 4.3 million home sales —up from 4 million in 2024. If you’re planning to buy or sell, understanding the key trends shaping the market can help you make informed decisions. Here are five major factors that will influence the housing market in 2025. 1️⃣ Interest Rates & Affordability Mortgage rates play a huge role in home affordability, and experts predict they will stabilize in 2025 after recent fluctuations. Lower rates could encourage more buyers to enter the market, but even a slight increase could impact affordability. 🔹 What This Means for You: Buyers should keep an eye on interest rate changes and act when conditions are favorable. Sellers should be prepared for shifts in buyer demand based on rate trends. 2️⃣ Home Prices & Affordabil...