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U.S. Housing Market Predicted to Change as 2025 Approaches

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Housing Market,Zillow,Home Inventory

Zillow predicts that the U.S. housing market will become more active in 2025, with increased home inventory and modest home value growth. However, homebuyers should prepare for fluctuating mortgage rates. Zillow's chief economist, Skylar Olsen, notes that while more inventory will give buyers more negotiating power, affordability remains a significant challenge.

As 2025 approaches, the U.S. housing market is poised for a shift. On Monday, Zillow predicted a more active market with additional inventory for 2025, giving buyers more room to negotiate. However, homebuyers should expect some turbulence with fluctuating mortgage rates, even as more homes become available."Buying a home in 2024 was surprisingly competitive given how high the affordability hurdle became.

However, they have since climbed back to nearly 7%, changing the affordability picture for home buyers.Zillow said more swings like this are expected next year with refinancing sprints occurring during the dips.Zillow predicted that buyers markets will spread to the Sourthwest in 2024 as inventory continues to come unstuck in relatively affordable markets.

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