Zillow’s November forecast shows modest growth in U.S. home values and rising sales in the coming year. Home prices are expected to increase about 1.2% over the next 12 months, while existing-home sales are projected to reach 4.09 million in 2025.
The modest price growth reflects steady demand and gradual recovery after slower activity in recent years. Analysts say the rise in home values, though modest, signals stability in the housing market, giving buyers and sellers confidence.
Zillow notes that the increase in sales is supported by stable mortgage rates and improving affordability in key markets. Rising sales and modest price gains indicate a balanced market, where supply and demand are beginning to align more closely.
Experts highlight that regions with strong employment growth and population expansion are likely to see the largest gains in home values and sales activity. Meanwhile, slower-growth areas may experience more limited increases.
The forecast suggests that buyers will benefit from reasonable price growth, while sellers can still capitalize on improved market conditions. Analysts say the combination of stable home values and rising sales is encouraging for both first-time buyers and investors.
Zillow’s data aligns with broader trends in the housing market, where gradual improvements are expected after a period of volatility. The balance between supply and demand, along with steady interest rates, is helping to create a more predictable market environment.
Economists note that the projected 4.09 million existing-home sales represent a rebound from slower sales in prior years. Increased activity is likely to boost related industries, including construction, home improvement, and real estate services.
The forecast also underscores the importance of monitoring local market trends. Prospective buyers and sellers are encouraged to consider regional conditions, including employment, inventory levels, and economic growth, when making housing decisions.
Zillow’s outlook for 2025 suggests that the U.S. housing market will continue its steady recovery, with moderate price growth and increasing sales contributing to a stable real estate environment. Analysts say the outlook offers optimism for buyers and sellers seeking predictable market conditions.
Overall, Zillow’s forecast of 1.2% home value growth and rising sales to 4.09 million indicates a cautiously positive outlook. While growth is modest, the data point to a healthier, more balanced housing market heading into 2025.
