—Orlando Miner, B1Daily

Big changes may be coming to the housing market. Zillow, a big company that tracks home prices, says that by the end of 2025, home prices across the United States could drop by about 2%. This would be the biggest fall in prices since 2012.

Why is this happening? Two reasons: First, more homes are being listed for sale, which means buyers have more choices. Second, mortgage rates (the interest you pay when you borrow money to buy a home) are still high and are expected to stay around 6.5%. When borrowing money is expensive, fewer people rush to buy.

If you are looking to buy a home, this could be good news. Sellers might have to lower their prices to attract buyers. There could also be a lot more homes to pick from. Zillow thinks about 4.2 million homes will be for sale in 2025, which is about 3% more than this year.

Some places will be better for buyers than others. Zillow points out that states like Texas, Florida, and Louisiana—especially cities like Miami, Tampa, Jacksonville, New Orleans, and Memphis—will have more choices and better prices. However, in the Northeast, like New York and Boston, prices could still go up.

Even though prices might go down, buying a house is still expensive because of high mortgage rates. If you plan to buy, Zillow recommends staying in your new home for at least 7–9 years. This gives you time to build equity and make the money you spent worth it.

For people who are not ready to buy, there’s another thing to watch: rent prices. Zillow says that rents for single-family homes could rise by about 3.1% by the end of the year. So if you’re renting, you might want to prepare for higher costs too.

What This Means for You:

• If you’re thinking about buying a home, waiting a little longer could get you a better deal.
• You might find more homes for sale and better prices, especially in the South.
• But even with lower home prices, monthly payments could still feel high because of loan costs.
• Renting could also get more expensive, so plan ahead.

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P.S. If you need financing for a commercial or investment deal? I can help. 

Stay Informed!

Orlando Miner is a financial guru, podcaster, and a trusted lender.

—-Orlando Miner, B1Daily