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.