Title: Zillow Forecasts 2025 Home Price Drop — What Buyers & Sellers Need to Know

The U.S. housing market is shifting—and fast.

This week, Zillow economists released their updated 12-month forecast, predicting that U.S.

home prices will decline by 2.0% in 2025 , a notable revision from their earlier forecast of a

2.6% increase. For many in the real estate space, this update confirms what’s already been felt

on the ground: the market is cooling.

So what’s behind this major change—and what does it mean for buyers and sellers?

📉 What’s Causing Home Prices to Drop?

Zillow attributes the revised forecast to several key factors:

• Increased Housing Inventory: More active listings mean more options for buyers—and

  more competition for sellers.

• Affordability Pressures: With mortgage rates having jumped from 3% to over 6% since

  2022, many potential buyers are choosing to rent instead.

• Weakened Demand: As affordability challenges grow, buyer activity slows, causing

  inventory to build up and price growth to stall.

Zillow’s own March update noted:

“The rise in active listings is fueling softer home price growth, as greater supply

provides more options and more bargaining power for buyers.

”

🏡 What This Means for Buyers

If you’ve been sitting on the sidelines, 2025 may bring new opportunities.

For the first time in years, buyers are regaining leverage . More inventory means more

choices. Softer prices mean less competition. And while mortgage rates remain a hurdle, slightly

lower rates by the end of the year could improve affordability.

Tip for Buyers:

Even with better market conditions, timing and negotiation still matter. A knowledgeable agent

can help you spot real value and avoid overpaying.

📦 What This Means for Sellers

Sellers face a more competitive landscape. With home prices projected to fall and buyers

gaining power, the days of bidding wars and all-cash offers may be behind us—at least for now.

Tip for Sellers:

In this market, pricing, marketing, and timing are everything. An experienced realtor can help

position your home to stand out—and still attract serious offers.

👥 Why You Need an Experienced Realtor More Than Ever

The real estate market has always had its ups and downs, but in times of uncertainty, the right

guidance is priceless .A great realtor doesn’t just open doors—they help you:

• Understand the data

• Read local trends

• Strategize on pricing

• Negotiate effectively

Whether you're buying your first home or planning to list this fall, the market isn’t something

to go through alone.

💬 Final Thoughts

Zillow’s forecast is a signal: 2025 is shaping up to be a year of recalibration in real estate.

Buyers may find new opportunities, while sellers will need to adjust their expectations and

strategies.

The key takeaway? Be informed. Be strategic. And don’t go it alone.

Have questions or want to discuss your options?

📩 Reach out anytime—I’d love to help you navigate what’s ahead.