Mid-Year Housing Market Forecast

From rising home prices to mortgage rate swings, the housing market has left many people wondering what’s next – and whether now is the right time to move. 

1. Mortgage Rates Should Come Down (Slightly)

While a significant drop isn’t on the table, experts are calling for a modest rate decline in the months ahead as the economic outlook becomes more confident. Based on the information we have right now, here’s a look at where rates should be by year-end.

2. Inventory Will Continue To Grow

Homeowner patience has worn thin, fueling a significant rise in inventory this year. After waiting for rates to drop – a strategy that hasn't delivered – many are realizing life moves on, regardless of market conditions. This "must-move" mentality is a key driver behind the recent surge in listings; a trend experts anticipate will continue. If interest rate predictions hold true, even more sellers could jump off the fence, significantly boosting your housing options.

3. Home Prices Are Moderating

As more homes hit the market, there will also be less upward pressure on home prices. Expert forecasts are still calling for growth, but the pace of that growth is slowing as inventory climbs. The average of all 7 forecasts shows prices will rise about 2% this year. Keep in mind, the housing market is hyper-local. So, this is going to vary by area. Some markets will see prices climbing higher and some may even see prices dip a little if inventory is up significantly in that location.

So, if you want or need to move this year, know that things should start looking up! We're here to help you navigate the complexities of the housing market. Whether you're buying, selling, or simply have questions, never hesitate to contact me.