Is the American dream of homeownership about to get a rude awakening, courtesy of China? The question of can China crash the US housing market in 2025 and how is a complex one that's been keeping economists and homeowners alike up at night. The short answer? It's unlikely that China alone can cause a full-blown crash.

While China’s economic actions, especially in response to tariffs, could make things tougher, a true crash would likely need a perfect storm of other economic disasters. Let's dig a little deeper to see exactly what's at stake.

Can China Crash the US Housing Market in 2025?

A New Trade War: Echoes of the Past?

Remember those trade wars from a few years back? Well, they are back and with a vengeance! During his second term, President Trump has slapped some seriously high tariffs on Chinese goods, some hitting a whopping 145%. The goal? To bring down trade deficits and tackle issues like illegal fentanyl entering the country. But China isn't backing down. They've fired back with their own tariffs, reaching up to 125% on certain U.S. products. Think of it like a game of economic chess where each move can have big consequences.

Now, this trade war isn't just about bragging rights. It can directly affect the US housing market, and here's how.

The Direct Hit: Higher Construction Costs

One of the most straightforward ways tariffs impact housing is through the cost of materials. Think about it – how much do you use materials in building a house? A lot!

• Imported Building Materials: A significant chunk of the materials used to build houses in the US come from China.
• Rising Prices: Tariffs drive up the prices of these materials, like steel, aluminum, and even appliances.
• NAHB Estimates: The National Association of Home Builders (NAHB) estimates that these tariffs can add thousands of dollars (between $7,500 and $10,000!) to the cost of building a single home.

This can create a ripple effect:

• Higher Home Prices: Builders may pass those costs on to buyers, making homes more expensive.
• Reduced Supply: Some builders might decide to build fewer homes altogether, tightening the housing supply.

Here’s a table illustrating how these tariffs are affecting the construction industry:

Beyond the Bricks: Indirect Economic Impacts

It is not just the price of bricks and mortar that are affected. These trade disputes create economic uncertainty.

• Consumer Confidence: A shaky economy can make people less confident about buying a home.
• Recession Fears: If the trade war drags on, some experts worry it could trigger a recession.

Think of it this way: if people are worried about losing their jobs or if the economy looks uncertain, they're less likely to make a big purchase like a house.

China's Big Weapon: Mortgage-Backed Securities

Here's where things get a bit more complicated and where China could exert more influence. China holds a massive amount of US mortgage-backed securities (MBS), which are basically investments tied to home loans.

• What are MBS? These are bundles of home loans that are sold as investments.
• China's Holdings: China is one of the largest foreign holders of US MBS.
• The Threat: China could sell off these securities, flooding the market and driving up mortgage rates.

Why does this matter? Higher mortgage rates make it more expensive to borrow money for a home, which means fewer people can afford to buy.

Has China Already Started?

There is some evidence suggesting that China has been quietly reducing its holdings of US MBS. While this might not cause an immediate crash, it could signal a long-term strategy to put pressure on the US economy. I believe we should be aware of this.

However, it's not a Simple ‘Crash' Button

It's important to understand that even if China sold off a large chunk of its MBS, it wouldn't necessarily trigger a catastrophic crash on its own.

• Self-Inflicted Wound: Selling off those securities would also hurt China financially.
• Market Interventions: The US Federal Reserve or other big investors could step in to buy up those securities and stabilize the market.

So, Can China REALLY Crash the Market?

The bottom line is that China alone probably can’t trigger a full-blown housing market collapse just through tariffs or selling off MBS. A true crash usually requires a perfect combination of factors, such as:

• Severe Economic Downturn: A recession with widespread job losses.
• Collapse in Consumer Confidence: People losing faith in the economy.
• Other Unexpected Events: I cannot really predict this.

My Take and Final Thoughts

While I don’t think China can single-handedly crash the US housing market in 2025, I do think its actions can certainly make things tougher. Higher construction costs, rising mortgage rates, and increased economic uncertainty can all put a damper on the market.

The US housing market is a complex beast, influenced by a mix of domestic policies, global economic conditions, and plain old supply and demand. It's unlikely that China can simply press a button and make the whole thing fall apart. However, we should not underestimate the potential for economic disruptions and be prepared for challenges ahead. After all, being informed is the best defense!

Is a housing market crash on the horizon in 2025? If you're like most folks, you've probably been feeling a knot of anxiety about the economy lately. Well, you're not alone. A recent survey from Clever Real Estate reveals that a significant 70% of Americans are indeed worried about a housing market crash in 2025.

That's a pretty big number, and it definitely got my attention. This widespread concern isn't just some fleeting feeling – it’s rooted in real economic anxieties that many of us are grappling with every day. Let’s unpack what’s behind this fear and what it might mean for you, whether you're a homeowner, a renter, or dreaming of buying your first place.

70% Americans Worry About Housing Market Crash in 2025: Should You Be Concerned Too?

Why the Housing Market Crash Fear is Real – And Why It Matters

When I first saw that 70% figure, it really made me pause and think. That's not just a slight unease; that’s a significant majority of people feeling genuinely concerned. It tells me that there's something more than just media hype fueling this worry. And digging into the survey, it becomes clear that these fears are tied to a broader sense of economic uncertainty hanging over us as we head into 2025.

Let’s break down some of the key factors contributing to this widespread anxiety:

• Inflation is Still a Top Worry: A whopping 94% of Americans are worried about inflation, and 74% believe it will actually get worse in the next year. This is huge! When everyday things like groceries, gas, and utilities keep getting more expensive, people naturally start to worry about big-ticket items like housing. Inflation eats away at your buying power, and it makes everyone feel less secure.
• Economic Outlook is Fuzzy: Only 26% of Americans feel economically better off now than they did six months ago, and just 34% expect to be better off in another six months. These numbers paint a picture of widespread economic pessimism. If people don't feel confident about their financial future, it's natural to worry about big investments like homes.
• Government Action – Or Inaction?: A majority, 63% of Americans, don't think the current government is taking the right steps to address economic concerns. This lack of confidence in leadership adds another layer of unease. People want to feel like someone's in control and working to steer the economy in the right direction, and right now, many Americans just aren't feeling it.
• Rising Costs of Homeownership – Beyond Just the Mortgage: It's not just about affording a house these days. 89% are worried about rising home maintenance and repair costs, and 88% are stressed about increasing property taxes. Being a homeowner is becoming more expensive across the board, adding to the pressure and making people wonder if it’s all sustainable.

It's like a perfect storm of economic pressures is brewing, and the housing market, being such a significant part of our financial lives, is right in the center of it.

Echoes of 2008? Why Housing Crashes Stick in Our Minds

For many of us, the memory of the 2008 housing market crash is still pretty vivid – or at least, we've heard enough stories to know how devastating it was. I remember friends and family losing their homes, and the overall economic fallout was something that impacted everyone, whether you owned a house or not. That kind of event leaves a mark on our collective consciousness.

So, when we hear whispers of another potential housing market downturn, it's understandable that alarm bells start ringing. We don't want to repeat that experience. And while no two economic situations are exactly the same, some of the underlying anxieties feel familiar. Are we heading for a repeat? That’s the question on a lot of people's minds, including mine.

Tariffs, Trade Wars, and the Domino Effect on Housing

Another big worry highlighted in the survey is the fear of tariffs and trade wars. A staggering 81% of Americans are concerned about this, and 72% believe tariffs will hurt the US economy. Now, how does this tie into housing? Well, tariffs can increase the cost of imported goods, which can lead to higher prices for building materials, appliances, and all sorts of things that go into building and maintaining a home.

When the cost of construction goes up, it can push up the prices of new homes. And if people are worried about trade wars impacting the broader economy, they might become more hesitant to make big financial decisions like buying a house. It’s all interconnected. The global economic climate definitely casts a shadow over the housing market.

Cutting Back and Bracing for Impact: How People Are Reacting

It’s fascinating and a bit concerning to see how these economic worries are actually changing people's behavior right now. The survey reveals that 58% of Americans are already cutting back on non-essential spending in anticipation of economic troubles in 2025. That’s a significant chunk of the population tightening their belts.

And it’s not just about cutting back on lattes or entertainment. 32% of those who planned a major purchase this year are now delaying it, and that includes 22% who were planning to buy a home and 13% who were planning to sell. People are putting their housing plans on hold, waiting to see what happens. This hesitation itself can have a chilling effect on the housing market. If buyers pull back, it can slow down sales and potentially contribute to price drops.

Interestingly, a smaller percentage, around 32%, say they've even started stockpiling resources like canned food and first aid supplies. This suggests that for some, the worry goes beyond just finances and into a deeper sense of preparing for potential disruptions. It’s a sign of real unease in the population.

Here's a quick look at how economic worries are impacting consumer behavior:

Generational and Gender Divides in Housing Market Fears

It’s also interesting to see how these worries break down across different groups. The survey highlights some notable differences:

• Millennials vs. Boomers: Younger generations are feeling the housing payment squeeze more acutely. 41% of millennials are worried about affording housing payments in 2025, compared to only 26% of boomers. This makes sense – millennials are often earlier in their careers, may have less savings, and are facing higher housing costs relative to their income than boomers did at the same age.
• Women vs. Men: Women seem to be more worried about a housing crash than men. 77% of women are concerned about a potential crash, compared to 60% of men. There’s a similar gap when it comes to rising mortgage rates, with 72% of women worried versus 56% of men. This gender difference is intriguing and could reflect varying levels of financial security or risk perception.

These demographic differences tell us that the anxiety around the housing market isn't uniform. It’s hitting different groups in different ways, and it’s important to understand these nuances.

Government Policies and Public Trust – Or Lack Thereof

The survey also touches on public opinion about government policies and their effectiveness in addressing economic concerns. As mentioned earlier, a significant 63% of Americans don’t believe the government is taking the right actions. This lack of trust extends to specific proposals and policies.

For example, while 78% of Americans generally favor cutting government spending, only 46% support the current administration’s approach. Even Elon Musk’s Department of Government Efficiency (DOGE) task force only garners 44% support. And ongoing mass layoffs at federal agencies are supported by only 35%, with 82% worried about spending cuts in general.

What this tells me is that people are skeptical. They might agree with the idea of fiscal responsibility in principle, but they are not convinced that the current strategies are the right ones, or that they are being implemented in a way that will actually benefit average Americans. This lack of confidence in government can further amplify economic anxieties, including worries about the housing market.

Beyond Housing: Broader Worries About Social Safety Nets

The economic anxieties aren’t just about housing prices and mortgages. People are also deeply concerned about the potential erosion of social safety nets. A striking 85% are worried about Social Security benefit changes, making it the top concern among government programs. And 75% believe that cuts to government assistance programs would directly impact them or their families. Alarmingly, 11% even fear becoming homeless as a result of these cuts.

These figures highlight a broader sense of vulnerability and insecurity. It's not just about the value of your home; it’s about basic security and the feeling that the systems meant to protect us might be weakening. This kind of deep-seated worry can definitely contribute to overall economic pessimism and fuel fears about a housing market crash as part of a larger economic downturn.

Navigating the Uncertainty: What Does This Mean For You?

So, with all this worry swirling around, what should you actually do? Here’s my take, based on the data and my own observations:

• Don't Panic, But Be Prepared: While 70% worry about a crash, it doesn't mean a crash is guaranteed. Economic forecasts are always uncertain. However, it’s wise to be prepared for potential economic headwinds. Review your finances, build up some savings if you can, and consider stress-testing your budget to see how you’d fare if things get tighter.
• For Homeowners: Review Your Mortgage and Expenses: If you're a homeowner, now is a good time to look closely at your mortgage terms and your overall housing expenses. Are you comfortable with your monthly payments, even if interest rates were to nudge up further? Could you handle unexpected repair costs? Being proactive about your finances can give you peace of mind.
• For Potential Buyers: Patience Might Be a Virtue: If you're looking to buy a home, this might be a time to exercise a bit of patience. With so much uncertainty in the market, waiting a bit might give you a clearer picture of where things are headed. Keep an eye on interest rates, housing inventory, and overall economic indicators.
• For Renters: Stay Informed About Local Market Trends: Renters aren't immune to housing market shifts. If a housing market cools down, it could eventually impact rental prices too. Stay informed about what's happening in your local rental market.
• Engage in the Conversation: Talk to your friends, family, and financial advisor about these concerns. Sharing information and perspectives can help you feel more informed and less alone in your worries. And consider making your voice heard to policymakers about the economic issues that matter to you.

Ultimately, the fact that 70% of Americans worry about a housing market crash in 2025 is a significant signal. It reflects real economic anxieties and a widespread sense of uncertainty. While we can’t predict the future with certainty, understanding these concerns and taking prudent steps to prepare is always a smart move. Staying informed, being financially responsible, and engaging in constructive conversations are the best ways to navigate these uncertain times.

Are you glued to housing market news, trying to figure out what's next? Are prices going up, down, sideways? Well, the latest word from the National Association of Realtors (NAR) is in, and it's a bit of a mixed bag, but with a clear upward nudge on prices. The home price forecast jumps for 2025 and 2026, according to NAR's revised projections, meaning we're likely to see home prices grow faster than initially expected in the coming years.

While they've slightly tempered expectations for home sales volume, the anticipated price increases are now more pronounced. Let’s break down what this means for everyone from first-time homebuyers to seasoned sellers.

Housing Price Forecast for 2025 and 2026 Increased by NAR

For months, I’ve been digging into market data, chatting with real estate pros in my area, and trying to make sense of all the conflicting signals. Initially, there was a lot of buzz about a potential boom in 2025. Now, that excitement is a little more grounded in reality. NAR's recent update gives us a clearer picture, even if it's not exactly what everyone was hoping for – especially those dreaming of drastically cheaper homes.

Key Takeaways: What You Need to Know

Here are the essential points to keep in mind about NAR's revised home price forecast jumps for 2025 and 2026:

• NAR has adjusted its housing market forecast downwards for 2025 in terms of sales volume, now projecting 4.3 million existing-home sales.
• However, they’ve increased their home price growth expectations for both 2025 (to 3%) and 2026 (to 4%).
• The primary reasons for these revisions are persistent affordability challenges and a more realistic outlook on market dynamics.
• Despite the tempered sales forecast, NAR and other experts remain cautiously optimistic about the overall housing market, citing a strong job market, potential for lower mortgage rates, and slowly improving inventory.
• The revised forecast is more in line with other industry predictions, suggesting a consensus view of moderate growth with continued price appreciation.

Now Expect Stronger Home Price Growth

Remember those earlier forecasts that hinted at a moderate 2% bump in home prices for both 2025 and 2026? Well, NAR has tweaked those numbers. In their latest Real Estate Forecast Summit Update, they’ve dialed up their home price growth projections to 3% for 2025 and a more significant 4% for 2026. This adjustment, while seemingly small on the surface, signals a notable shift in expectations.

What caused this change of heart, you might wonder? It boils down to a few key factors that are shaping today’s housing landscape.

Why the Forecast Shift? Affordability and Reality Check

If you've been house hunting recently, you already know the biggest hurdle: affordability. Even though we’ve seen some fluctuations in mortgage rates, they haven't dipped enough to truly make a significant dent in how much house the average person can afford. Prices have also remained quite sticky, not falling as much as some might have hoped.

• Stubbornly High Prices: Home prices haven’t plummeted. In many areas, they are still elevated compared to pre-pandemic levels. This baseline of higher prices means any percentage increase translates to a larger dollar amount.
• Mortgage Rate Reality: While we all keep wishing for those super-low rates of the past, the reality is that rates are likely to stay higher for longer than initially anticipated. This directly impacts buyer purchasing power.
• A Dose of Realism: I think NAR, like many of us who follow the market closely, is simply being realistic. The initial optimism for a massive housing boom in 2025 was perhaps a bit overzealous. The market is resilient, yes, but the factors needed for a truly explosive surge just aren't fully in place right now.

Essentially, the revised home price forecast jumps are a reflection of these persistent affordability challenges and a more tempered view of how quickly things will change. It’s not that the market is going to crash – far from it. It’s just that the pace of improvement, especially for buyers hoping for price relief, might be slower than previously thought.

Decoding the Revised Numbers: Sales and Prices in 2025 and 2026

Let's get into the specifics. Here’s a side-by-side look at NAR’s previous and revised forecasts, making it easy to see where the changes are:

The table clearly shows the adjustments. While existing-home sales for 2025 are now expected to be lower than previously forecasted (4.3 million versus 4.9 million), the home price forecast jumps are the real story here. The anticipated price growth is now higher for both 2025 and 2026. This suggests that even with slightly fewer sales, demand and limited inventory are still likely to put upward pressure on prices.

Is It All Bad News? Reasons for Optimism Remain

Now, before you start feeling discouraged, especially if you're trying to buy a home, it's important to remember that this isn't a doomsday scenario. Despite the revised forecast, there are still plenty of reasons to be optimistic about the housing market's overall health.

As NAR Chief Economist Lawrence Yun pointed out, “The worst is over [for home sales]. The worst for inventory is over.” That’s a pretty strong statement coming from a leading expert. He also highlighted that the probability of a recession is still low, and key factors like job growth and the potential for lower mortgage rates are moving in a positive direction.

I echo this sentiment. From what I’m seeing and hearing, the market is showing resilience. Here’s why I believe there’s still room for optimism:

• Solid Job Market: A strong job market is the bedrock of a healthy housing market. People need to feel secure in their jobs to make big purchases like homes. The current job market, while having some shifts, is still generally robust.
• Mortgage Rates – Potential for Gradual Decline: While rates haven't plummeted, the consensus is that they are likely to drift downwards over time, even if slowly. Any decrease in rates will improve affordability and bring more buyers back into the market.
• Inventory – Slowly but Surely Improving: Inventory levels are still below historical norms in many areas, but they are starting to inch up in some markets. More homes on the market give buyers more choices and can help moderate price increases.

How Does NAR's Revised Forecast Stack Up?

It's always wise to look at different sources when making big decisions. Interestingly, NAR's revised forecast of 4.3 million existing-home sales for 2025 actually aligns more closely with predictions from other housing market experts.

Consider these figures:

• NAR (Revised): 4.3 million existing-home sales
• HousingWire (Mohtashami/Simonsen): 4.2 million existing-home sales
• Realtor.com: 4 million existing-home sales

This convergence of forecasts suggests that the revised NAR numbers aren't outliers but rather reflect a more widely held view of where the market is headed. It strengthens the credibility of the updated home price forecast jumps, as it’s not just one organization’s isolated opinion.

What does this mean for you?

• For Buyers: Focus on affordability above all else. Be patient but realistic. Don’t expect dramatic price drops. Budget carefully and be prepared for competition, especially for well-priced homes in desirable areas.
• For Sellers: The forecast suggests continued price appreciation, but don’t get overconfident. Price your home competitively based on current market conditions in your area. Work with a knowledgeable agent who understands local market nuances.

The housing market is always evolving, and staying informed is key. While the home price forecast jumps might not be thrilling news for buyers hoping for bargains, it does signal continued stability and moderate growth in the real estate sector. For both buyers and sellers, navigating this market successfully will require informed decisions and a realistic understanding of the current landscape.

Thinking about the value of your home or planning to buy one? Well, buckle up, because the housing market is looking a bit different for 2025. Experts are saying that home price appreciation for 2025 is forecast to remain lower than in 2024. This doesn't mean prices will suddenly crash, but the big increases we might have seen in the recent past are likely to slow down. Let's dive into why this is happening and what it could mean for you.

Home Price Growth in 2025 is Forecast to Lag Behind 2024's Pace

What the Numbers Are Telling Us

Based on the latest data from CoreLogic, a company that really knows its stuff when it comes to housing, the pace at which home prices are going up is expected to ease in 2025. While we saw some pretty strong gains earlier in 2024, reaching a peak of 6.5% annual price growth in February and March, the forecast for 2025 suggests an average appreciation of around 2.8% nationwide. To put it plainly, the rocket ship of home price increases is starting to gently glide back down.

Even towards the end of 2024, we saw some interesting shifts. December actually marked the second month where the annual price growth ticked upwards slightly, reaching 3.9%. This might seem like things are speeding up again, but it's more of a small bump in the road. Looking closer at the monthly changes, home prices actually declined for five months straight before this little December rise. This shows an underlying cooling trend.

Why the Slowdown? Let's Break It Down

So, what's causing this anticipated slowdown in home price growth? It's not just one thing, but a combination of different factors that are influencing both buyers and sellers.

• The Shadow of High Mortgage Rates: Let's be honest, mortgage rates have been higher than what many of us have gotten used to. This directly impacts how much house people can afford. When it costs more to borrow money, the pool of potential buyers shrinks, and those who are still in the market tend to be more cautious about how much they're willing to pay. This increased cost of borrowing acts like a brake on rapid price increases.
• Buyer Fatigue and Caution: After a period of intense competition and rapidly rising prices, many potential homebuyers have simply become more hesitant. They're seeing more homes on the market, giving them more choices and less pressure to jump into a deal at any cost. Economic worries and uncertainty about the future are also making people think twice before making such a big financial commitment. I've talked to many people who are taking a “wait and see” approach, hoping for more favorable conditions.
• More Homes on the Market: Remember when it felt like there were barely any houses for sale? That's been changing. As we moved through 2024, the number of available homes started to increase in many areas. More inventory gives buyers more power. When there are more options, sellers can't always command the sky-high prices they might have gotten before. The end of 2024 even saw a significant rise in de-listings, meaning some sellers decided to take their homes off the market, perhaps sensing a shift in buyer demand.
• Comparing to a Hot 2024: It's also important to remember what happened in 2024. We saw some really strong price gains, especially in the spring. When we look at the year-over-year numbers for 2025, we're comparing them to those relatively high points from the previous year. This makes the growth rate in 2025 naturally appear lower, even if prices aren't actually falling dramatically.

Regional Differences: Not All Markets Are the Same

One thing I've learned over the years is that the housing market isn't a single, unified entity. What's happening in one part of the country can be very different from what's going on somewhere else. The CoreLogic data highlights this quite clearly.

• Cooling in the Southeast: Some areas, particularly in the Southeast like Tampa and Atlanta, experienced a more significant slowdown in annual price gains towards the end of 2024. Tampa even saw an annual price decline of 1.1% in the 20-city index. This suggests that some markets that were hot may be seeing a correction.
• Continued Strength in the Northeast: On the other hand, cities like Boston, New York, and Chicago showed more resilience, leading the 20-city index with strong annual gains. These areas might have factors like limited inventory or strong local economies that are helping to support prices. I've noticed that in these areas, demand often outstrips supply, which keeps prices firmer.
• The Midwest Story: Markets in the Midwest, like Cleveland and Detroit, saw some cooling after a strong start to 2024. This shows that even areas that initially had an advantage can be influenced by broader market trends.

Here's a quick look at how some key metros were performing at the end of 2024:

Looking Ahead to the Spring Buying Season

The spring is usually a busy time for the housing market, and everyone's watching to see what 2025 will bring. Early signs suggest it might look a lot like 2024. While there will likely be more homes available for sale, which is good news for buyers, those buyers are still expected to be cautious due to the economic climate and those persistent higher mortgage rates.

One interesting point is the level of inventory in different markets. Cities like Boston and Chicago, which are still seeing price pressure, have inventories that are significantly below pre-pandemic levels. This lack of supply can help keep prices elevated. In contrast, Western markets like Denver, San Diego, and Las Vegas had more inventory but still showed relatively steady pricing, particularly for mid-tier and high-tier homes. This suggests that even in markets with more choices, demand might still be strong for certain types of properties.

The Wild Cards: Uncertainty and Policy

As someone who follows the housing market closely, I know that there are always factors that can throw a wrench in even the most careful predictions. Right now, there's a fair amount of uncertainty floating around.

• Economic Policies: Potential policy changes can have a big impact on the economy, and by extension, the housing market. For example, talk of government layoffs could affect specific regions, particularly those with a large government presence like the Washington D.C. metro area. Job losses can definitely put downward pressure on housing demand and prices.
• Non-Fixed Homeownership Costs: It's not just the mortgage payment that homeowners have to worry about. Costs like insurance and property taxes are also on the rise in many areas. These increasing costs can make homeownership less affordable and could further dampen demand in some markets, like Tampa, which has already seen some weakening.

My Two Cents: A More Balanced Market Ahead?

If you ask me, the forecast for slower home price appreciation in 2025 isn't necessarily a bad thing. After the rapid increases of the past few years, a more balanced market could be healthier in the long run. It might mean that buyers have more time to make decisions, there's less intense bidding, and prices become more aligned with underlying economic fundamentals.

For sellers, it might mean adjusting expectations. While you might not see the same quick and substantial profits as in recent times, well-maintained and properly priced homes should still attract buyers.

For potential homebuyers, this slowdown could create more opportunities. While mortgage rates remain a factor, the increased inventory and potentially less frantic competition could make finding the right home more manageable.

Of course, the housing market is complex and influenced by a multitude of local and national factors. It's always a good idea to keep a close eye on what's happening in your specific area and consult with local real estate professionals for personalized advice.

In Conclusion:

While home prices are still expected to rise in 2025, the rate of appreciation is forecast to be lower than what we experienced in 2024. This is due to a combination of factors, including higher mortgage rates, increased inventory, buyer caution, and comparisons to a strong prior year. However, remember that real estate is local, and different markets will experience different trends. Staying informed and understanding the dynamics at play will be key for both buyers and sellers in the year ahead.