Thursday, May 8, 2025 / by Vic Markarian
2025 Housing Market Forecast: What To Expect in the Second Half of the Year

With mortgage rates, home prices, and inventory all shifting this year, you might be wondering:
“Is now a good time to buy or sell?”
The good news? Top housing experts are sharing updated forecasts — and they offer more clarity (and optimism) than you might expect.
As Business Insider recently put it:
“As mortgage rates go down this year, affordability may improve slightly for homebuyers. Inventory is also expected to grow, which should help moderate price growth and make finding a home easier.”
Here’s a breakdown of the 3 key trends experts are watching:
1. Mortgage Rates Are Projected To Ease Slightly
While we’re not heading back to 3% rates anytime soon, forecasters do expect a modest drop by the end of 2025.

2. Inventory Is Expected To Keep Climbing
More sellers are returning to the market. Why? Many are done waiting for interest rates to drop — and they’re moving forward with their plans.
As ResiClub Co-founder Lance Lambert explains:
“The fact that inventory is rising year-over-year strongly suggests that national active housing inventory for sale is likely to end the year higher.”
That means more options for buyers and less pressure on prices if inventory continues trending upward.
3. Home Price Growth Will Likely Moderate
Yes, home prices are still expected to rise — but not as fast. The average forecast from 7 major experts points to +2.3% appreciation by year-end.
This is welcome news for buyers who’ve been sidelined by rapid price jumps. For sellers, it means the market is still strong — but pricing right will matter more than ever.
Keep in mind: market conditions vary by city and neighborhood. In areas with rising inventory, prices may level off — but high-demand pockets of Los Angeles County could see prices hold strong or even climb.
Bottom Line
Whether you're buying, selling, or just exploring options this year, the expert forecasts show signs of balance ahead:
- Slightly better rates
- More inventory
- Slower price growth
If you're thinking about a move, let’s connect and look at what's happening locally — from Glendale to Burbank, Pasadena to Porter Ranch — so you can make the most informed decision possible.
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