Real estate market map: Zillow’s 2025 home price forecast for over 400 markets

Looking for more real estate news from Lance LambertResiClubin your inbox? Sign up for free every dayResiClubnewspaper.

Active real estate listings for sale across the country is growing year on year as the tight housing supply reduces demand and increases the time homes spend on the market.

That’s starting to translate into declining national home price growth—something economists at Zillow expect to continue over the next year.

US home prices, as measured by the Zillow Home Value Index, increased by +2.8% from July 2023 to July 2024.

Zillow’s latest updated forecast expects US home prices to rise just +0.9% over the next 12 months, from July 2024 to July 2025.

“Housing competition and price appreciation eased faster than usual in July as high housing costs continue to hurt buyers. . . . More choices for consumers means less intense competition for each home. That is reflected in the growing share of home sellers who are reducing their prices. More than 26% of homes on Zillow received a price reduction in July, the highest share of any July since at least 2018, when the data began to be reported,” he wrote Zillow economists last week.

Zillow economists he added that: “Looking beyond 2024, lower inflation and associated mortgage rates should improve affordability slightly. This will help stimulate real estate activity, so both new listings and sales increase over time. “

Remember, if Zillow is correct, with national home prices rising just +0.9% over the next 12 months, it will mean that some housing markets are seeing lower home prices.