Will Housing Prices Drop In 2025. In 2025, the housing market is expected to start picking up again, with home prices rising by approximately 1% to 2% above the current inflation rate. But the forecasts of how much prices will rise are within a tight range.
Mortgage rates hover closer to 7% than 6%—far from what most economists and analysts forecasted and above the rates we saw. In aggregate, housing experts agree that home prices will continue to steadily climb next year unless there are major setbacks in the market, such as a highly unlikely housing crash.