Housing Market Forecasts for the Rest of 2025
Hi there! 👋 It’s Melinda Walencewicz here—your go-to Connecticut REALTOR®, checking in with a quick update on where the housing market seems to be headed for the rest of 2025. If you've been wondering whether now’s a good time to make a move—or if it's better to wait a little longer—you’re not alone. Let’s break down what the experts are saying about prices, mortgage rates, and how it all might affect your next step. As always, I’m here to walk through it with you. 💬
Are Home Prices Going Down?
I know a lot of folks are hoping prices might dip, especially if you’re planning to buy soon. And yes, we’ve seen a few headlines lately suggesting that prices are softening in some places. But before we start planning around a big drop, let’s take a look at the facts.
While price growth has definitely cooled compared to the past couple of years, that doesn’t mean we’re heading toward a market crash. The National Association of Home Builders put it this way:
“House price growth slowed . . . partly due to a decline in demand and an increase in supply. Persistent high mortgage rates and increased inventory combined to ease upward pressure on house prices. These factors signaled a cooling market, following rapid gains seen in previous years.”
In simple terms: things are normalizing. The frenzy has faded, but prices are still expected to climb slowly—not fall.
Right now, the average forecast from 8 of the top industry experts predicts that home prices will rise nationally by around 1.5–2% in 2025. So if you’ve been waiting for a major price drop, that likely isn’t on the horizon.
💡 In a few areas, we are seeing small price declines—around 3.5% on average—but that’s nothing close to the 20% crash we saw in 2008. And when you think about how much values have appreciated recently, it puts those little dips into perspective. According to the Federal Housing Finance Agency, home values are up 55% nationwide over the last 5 years. 📈
Bottom line? Prices aren’t tanking—they’re just rising at a gentler pace. Some areas may flatten out a bit by year’s end, while others could still see growth. If you’re wondering what that means in your specific town or county, let’s connect. Real estate is always local, and I’m happy to show you the latest trends in your neighborhood.
What’s Going on with Mortgage Rates?
Now let’s talk about mortgage rates—a huge factor in any real estate decision. I hear from so many of you: “I’m just going to wait until rates drop.” And that’s completely understandable. But based on what we’re seeing right now, that drop might not come anytime soon.
Here’s what Yahoo Finance recently reported:
“If you’re looking for a substantial interest rate drop in 2025, you’ll likely be left waiting. The latest news from the Federal Reserve and other key economic data point toward steady mortgage rates on par with what we see today.”
So, what does that mean for you? Most projections say we’ll continue to see mortgage rates stay in the mid-6% range through the end of the year—which is right about where they are now. That’s not a dramatic swing either way.
If you're ready to buy or sell, waiting for rates to fall significantly might delay your plans more than it helps. And truthfully, we can still build a successful plan even with rates where they are. ✅ There are great options out there (including lender programs and rate buydowns) that can help make things more affordable, especially when we strategize early.
Mortgage rates can shift based on a variety of economic influences—like inflation or Federal Reserve actions—so having someone on your side who’s watching the trends closely can make a big difference. I’ll always help you stay one step ahead.
What This Means for You (Whether You’re Buying, Selling, or Both)
Here’s the real takeaway: this market is all about strategy, not guesswork. 📍
If you're buying, know that home prices are still climbing, just more slowly.
If you're selling, you’re likely to still benefit from strong values—especially if your home is well-prepared.
And if you're doing both, I can help you coordinate timing, financing, and negotiations to protect your equity and keep things calm.
We’re not in a boom. We’re not in a bust. We’re in a balanced, steady market—and that gives us room to make thoughtful, informed decisions together.
Ready to Talk About Your Plans?
If you’re thinking about a move—whether it’s this fall, next year, or even “someday”—you don’t need to wait for perfect market conditions. Let’s have a conversation about what makes sense for you. Your personal timeline, goals, and lifestyle should always come first.
📞 Call me at 860-985-4363 or visit melindatherealtor.com to schedule your free consultation.
💬 I’m never too busy for you to be my #1 client.
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