Will House Prices Fall in 2025? Zillow Issues Housing Market Forecast

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Will House Prices Fall in 2025? Zillow Issues Housing Market Forecast
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After a tough period for buyers, house price predictions offer a mixed picture for next year.

The U.S. housing market has been a tough place for buyers in the past few years, with homes becoming more expensive, interest rates staying high, and housing inventory being low. Now, real-estate marketplace Zillow is predicting house prices will again rise modestly next year.'Zillow forecasts 2.6 percent home value growth in 2025, a relatively slow pace that is similar to this year's growth,' the company said in a statement on November 25.

In March 2020, the average home price was $213,212, according to the St. Louis Federal Reserve Bank. Just over two years later in June 2022, prices reached $301,184 - nearly $100,000 more.Mortgage Rates for 2025While house prices look like increasing next year, how mortgage rates will pan out throughout 2025 is a little less easy to predict.

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