What Experts Say About Home Prices in 2025

If you’ve been keeping an eye on the housing market—or considering a move—you
might be wondering what’s next for home prices. The latest Home Price Expectations
Survey from Fannie Mae offers valuable insights into where the market may be heading.

The Key Takeaway? Prices Are Still Rising—Just at a Slower Pace

According to the report:

● In 2025, home prices are projected to rise by 3.4%

● In 2026, they’re expected to increase by 3.3%

This reflects a shift from the rapid growth seen over the past few years. While the pace
is moderating, home values are still climbing—just at a more sustainable rate.

What This Means for Buyers and Sellers

For Buyers                                                                                                                                                      A slower pace of growth may bring more balance to the market. This could mean fewer
bidding wars and more time to make thoughtful decisions. While prices aren’t going
down, buyers may find it a bit easier to compete than in previous years.

For Sellers                                                                                                                                              It’s still a good time to list, but strategy matters. With home values continuing to rise,
sellers who price appropriately and present their homes well can still attract strong
offers. Today’s buyers are more selective, making preparation and marketing more
important than ever.

The Market Is Adjusting—Not Crashing
What we’re seeing is a healthy adjustment, not a downturn. The market is finding its
balance, which is a positive sign for long-term stability.

Remember: Real Estate Is Local
While national trends provide a big-picture view, local market conditions ultimately drive
your experience. If you’re curious about what these changes mean in your
neighborhood, reach out for a personalized look at our local market.

Source: FannieMae.com