Where Are Home Prices Headed? Here’s What Experts Are Saying
If you’ve been keeping an eye on the housing market—or thinking about making a move—you may be wondering what’s next for home prices. The latest Home Price Expectations Survey from Fannie Mae offers some clarity and insight into where things might be headed.
The Big Takeaway: Home Prices Are Still Rising—Just More Slowly
According to the survey:
Home prices are projected to rise by 3.4% in 2025
In 2026, they’re expected to grow by another 3.3%
That’s a shift from the rapid double-digit growth we saw during the height of the pandemic housing frenzy. But make no mistake—prices are still trending up, just at a more sustainable pace.
What This Means for Buyers and Sellers
For Buyers:
This slower pace of growth could mean a more balanced playing field. You might find fewer bidding wars, a bit more inventory, and slightly more time to make confident decisions. While home prices aren’t dropping, the intense pressure to act instantly is easing in many areas.
For Sellers:
It’s still a strong market, but strategy is key. With values continuing to rise moderately, sellers who price realistically and prepare their homes well can still attract serious buyers and competitive offers. Today’s buyers are more discerning—so presentation and marketing matter more than ever.
The Market Is Adjusting—Not Crashing
Despite headlines you might see, this isn’t a bubble bursting—it’s a healthy market correction. After years of rapid growth, the housing market is finding a more sustainable rhythm. That’s a good thing for long-term stability, whether you're buying, selling, or simply watching from the sidelines.
Remember: Real Estate Is Local
While national trends provide a big-picture view, local market conditions ultimately drive your experience. When it comes to market conditions, it's more accurate to talk in terms of “micro-markets” — not just by county or even by suburb, but by specific neighborhoods or pockets within them.
We're seeing homes just minutes apart performing very differently. These hyper-local trends are making it harder to predict how competitive the market might be for any one property.
That’s why it’s so important to work with a local real estate expert if you’re thinking about buying or selling. In today’s market, conditions can vary from block to block — and having the right guidance can make all the difference.
Thinking about your next move?
Whether you're planning to buy, sell, or just explore your options, I’m here to help you navigate the market with clarity and confidence.
