This housing market map shows Zillow’s updated home price forecast for 2025

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This week, Zillow economists announced that they expect US home prices, as measured by the Zillow Home Value Index, to increase by 2.9% between October 2024 and October 2025.

“This is an upward revision of our view from last month. Opposition forces are working to keep home prices rising, but only at a moderate pace. “Inventory remains very low by historical standards, which, when combined with expectations of lower mortgage rates and modest improvements in other leading indicators of home sales, is helping to improve home value appreciation,” Zillow economists wrote. “At the same time, a slight increase in new inventory for sale and continued mortgage rates combined to moderate price growth.”

While Zillow economists forecast a 2.9% increase in national home prices next year, they expect only a “slight increase in existing home sales next year, with an estimated 4.3 million sales in 2025, up slightly from a record 4.1 million. in 2023 and 4 million planned for 2024.

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Among the 400 largest US housing markets, Zillow expects the strongest home price declines between October 2024 and October 2025 to occur in these 10 areas.

1. Atlantic City, NJ: +6.5%
2. Kingston, NY: +6.1%
3. Augusta, ME: +6.1%
4. Pottsville, PA: +5.9%
5. Knoxville, TN: +5.8%
6. Vineland, NJ: +5.7%
7. Lewiston, ME: +5.7%
8. Concord, NH: +5.6%
9. Bangor, ME: +5.3%
10. Muncie, IN: +5.3%

Meanwhile, Zillow expects home price declines between October 2024 and October 2025 to occur in these 10 housing markets.

1. Lake Charles, LA: -7.8%
2. Houma, LA: -5.8%
3. Lafayette, LA: -4.0%
4. Johnstown, PA: -3.9%
5. New Orleans, LA: -3.8%
6. Eureka, CA: -3.4%
7. Beaumont, TX: -3.1%
8. Odessa, TX: -3.0%
9. Shreveport, LA: -2.9%
10. Hammond, LA: -2.9%

Although Zillow expects Florida home prices to rise next year, some real estate analysts remain skeptical. After all, Florida has had a significant increase in active inventory and supply months this year, which could indicate potential price weakness. Indeed, condo prices are currently declining in many Florida housing markets. And other Southwest markets, such as Punta Gorda and Cape Coral, are also seeing declines in single-family home prices.