SEATTLE – A new report from Zillow predicts an increase in U.S. home sales in 2025, despite ongoing market fluctuations.
The real estate marketplace anticipates a "bumpy" year ahead, largely influenced by mortgage rate movements. While 2024 saw erratic shifts in rates, analysts expect more stability in 2025, potentially easing competition for buyers.
Inventory levels are also projected to improve, with 100,000 more homes hitting the market compared to 2024, bringing the total to an estimated 4.16 million. However, housing supply remains 26% below pre-pandemic averages from 2018-2019.
Home values are expected to follow historical trends, with a modest 2.2% increase nationwide. Additionally, competition appears to be cooling, as 36 of the 50 largest U.S. metro areas reported a slight shift in favor of buyers.
While the market outlook remains uncertain, experts suggest that steadier mortgage rates and rising inventory could help drive home sales upward in the coming year.
