What Experts Say About Home Prices in 2025

Dated: May 20 2025

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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.

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Sovuthy Saing

I am a licensed REALTOR in Missouri and is passionate about serving my clients while guiding them through one of the biggest investments of their lives. I pride myself in providing the best home buyi....

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