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Among the many 26 forecasts tracked by ResiClub in its final 2025 home price forecast roundup, the typical prediction is a +2.7% enhance in U.S. house costs this 12 months.
Remember that the above determine is a forecast for nationally aggregated house costs. On a regional and native foundation, house value swings can fluctuate vastly from the nationwide determine. For instance, on a year-over-year foundation, U.S. house costs as measured by the Zillow Dwelling Worth Index are up 2.6%, whereas house costs within the Rochester, New York metro space are up 8.2% and residential costs within the Punta Gorda, Florida metro area are down 8.3% throughout that very same timeframe.
To higher perceive how regional house costs might fluctuate in 2025, ResiClub reached out to economists at Zillow—whose forecast of U.S. house costs rising by +2.9% in calendar 2025 aligns with the typical mannequin—and economists at Moody’s—whose forecast of U.S. house costs falling by -0.4% in 2025 is among the many most bearish—to collect their metro-level house value forecasts.
Let’s check out the metro-level forecasts.
Click here to view an interactive of Zillow’s 2025 metro space house value forecast.
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Why does Zillow suppose most housing markets will see constructive house value appreciation in 2025?
Zillow economists write that: “Opposing forces are working to maintain house values climbing, however solely at a modest tempo. Stock stays very low by historic requirements, which, paired with expectations for declining mortgage charges and modest enhancements in different main indicators of house gross sales, helps to buoy house worth appreciation. On the similar time, modest will increase in new for-sale listings and persistently excessive mortgage charges are combining to restrict value progress.”
Click here to view an interactive of Moody’s 2025 metro space house value forecast.
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The forecast by Moody’s chief economist Mark Zandi has U.S. house costs, as measured by the Moody’s Analytics Repeat Gross sales Home Worth Index, falling 0.4% in 2025, adopted by 0.7% uptick in 2026.
Why is Moody’s nonetheless barely bearish on the subject of house costs?
“We anticipate houses on the market to steadily enhance as extra current owners must promote for demographic causes—loss of life, divorce, kids, job change—and decrease mortgage charges assist ease their rate of interest lock. The [potentially] decrease charges can even assist housing demand, however the enhance in housing provide will likely be much more important, weighing on home value beneficial properties,” Zandi tells ResiClub.
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In complete, there are 380 metro-area housing markets for which each Zillow and Moody’s are forecasting 2025 house costs. (See the interactive chart above.) That features:
193 markets: Metros that each Zillow and Moody’s forecast will see a house value enhance
156 markets: Metros that Zillow forecast will see a house value enhance and Moody’s forecast will see a house value decline
22 markets: Metros that Zillow forecast will see a house value lower and Moody’s forecast will see a house value enhance
9 markets: Metros that each Zillow and Moody’s forecast will see a house value decline
What’s ResiClub’s take? Broadly talking, housing markets the place stock (i.e., energetic listings) has returned to pre-pandemic ranges have experienced weaker home price growth (or outright declines) over the previous 30 months for the reason that pandemic housing growth fizzled out. Conversely, housing markets the place stock stays far beneath pre-pandemic ranges have, typically talking, experienced stronger home price growth over the previous 30 months.
Utilizing energetic stock as a information, we anticipate the best pricing resilience in 2025 to be in Midwest and Northeast markets, whereas the best pricing softness is probably going in Gulf markets equivalent to New Orleans, Austin, and Punta Gorda. Zillow seems to be overly optimistic about Southwest Florida, whereas we consider Moody’s is simply too bearish on the West Coast.
No matter how regional stock (see our latest monthly inventory update) or regional house costs (see our latest monthly home price update) carry out in 2025, we’ll be intently monitoring the traits to maintain you knowledgeable of any shifts.
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