Affordability Challenges Persist:  Elevated mortgage rates (expected to stay in the 6-7% range) and rising home prices will continue to make homeownership difficult.

Inventory Slowly Improving: Housing supply has increased but remains below the balanced market threshold. New construction will drive most inventory growth.

Economic & Political Factors at Play: Continued economic growth, inflation concerns, and policy decisions from the new administration may keep mortgage rates high.

Home Prices Expected to Rise, but Slower: Prices will likely continue increasing, though at a more moderate pace (around 2% growth in 2025). Some markets with higher inventory may see price declines.

Market Dynamics: 2025 will still lean toward a seller’s market in most areas, though regions with rising inventory may become more favorable to buyers. 

Buying & Selling Outlook: Despite high costs, buyer momentum is increasing, and sellers may find more opportunities. However, affordability constraints and limited inventory will remain key challenges.

Bottom Line
The 2025 housing market will still be tough for buyers due to high mortgage rates and rising prices, but improving inventory and shifting buyer sentiment may create more movement than in 2024.

https://www.bankrate.com/real-estate/housing-market-2025/