Zillow Home Value and Home Sales Forecast

Zillow's latest forecast indicates a decline in home values coupled with an increase in existing home sales for 2025. While mortgage rates are in an especially unpredictable period, barring unforeseen shocks Zillow expects rates to end the year near 6.5%. Home values are projected to drop by 1.9% this year – a revision from the previous expectation of a 0.6% increase. The combination of rising available listings and elevated mortgage rates is signaling potential price drops by year's end. With increased supply, buyers are gaining more options and time to decide, while sellers are cutting prices at record levels to attract bids.