Should You Buy or Sell in the 2025 Market? Here's What the Experts Predict

If you've been holding your breath waiting for the housing market to stabilise, you're not alone. Many buyers and sellers have paused their plans this year, unsure what the next few months will bring.

The good news? Industry experts are starting to agree on a few key forecasts that could bring more balance to the market—and potentially more opportunity for you.

Here’s what to expect in the second half of 2025.

Mortgage Rates May Ease Slightly (But Expect Fluctuations)

While no one is predicting a dramatic drop in rates, many forecasters believe mortgage rates could tick down modestly before the end of the year. This shift is expected to come as inflation cools and the broader economy stabilises.

Even a small drop in rates—say, from 6.8% to 6.5%—can have a meaningful impact on your monthly mortgage payment, especially in areas like Tomball, Cypress, or The Woodlands where home prices continue to hold strong.

However, rates will likely remain volatile. If you're waiting for the "perfect" rate to buy or sell, you could end up waiting longer than you’d like. The better strategy? Focus on what works for your financial situation now, not just what rates might do next.

Housing Inventory Is Growing (Finally)

We’ve already seen an increase in listings compared to the past two years. More homeowners are deciding they can't wait any longer to move, especially those who need more space or are relocating for work.

Experts believe this trend will continue in the second half of the year. That’s good news for buyers who’ve struggled to find the right property—or any property at all.

If you’re selling, this means pricing and presentation will matter more. With more competition, homes that are well-prepared and priced right are the ones that will stand out.

Home Prices Are Still Rising, But More Slowly

After years of rapid home price appreciation, 2025 is expected to bring something many buyers have been hoping for: moderation.

According to the average of seven major industry forecasts, home prices are expected to increase by about 2% this year. That’s far lower than the double-digit jumps we saw in 2020 and 2021, but still represents steady growth.

What does that mean for you?

• Buyers: You may get a bit more breathing room. Prices aren’t likely to fall significantly, but they aren’t racing upwards either.

• Sellers: Home values remain high, but pricing right is more important than ever. Buyers are more sensitive to price and less willing to engage in bidding wars.

Keep in mind: local markets vary. Some areas in Northwest Houston may see stronger appreciation, while others may flatten out depending on inventory levels and demand.

What This Means for Buyers and Sellers in Northwest Houston

Whether you’re looking in Tomball, Magnolia, Montgomery, or Cypress, these national forecasts can give helpful context—but the real story is always local.

For buyers, this could be the window you’ve been waiting for:

• More homes on the market

• Slightly lower rates

• Less price pressure from bidding wars

For sellers, this is a great time to list if you’ve been waiting:

• Buyer demand is still strong

• Prices are holding steady

• You may face more competition later in the year

Are you ready to move forward?

The second half of 2025 is shaping up to be more balanced—for both buyers and sellers. Mortgage rates may ease, inventory is rising, and price growth is becoming more manageable.

That doesn’t mean it will be stress-free. But it does mean that if you’ve been waiting for a sign that the market is shifting, this might be it.

Thinking about buying or selling this year?

Let’s talk about what these trends mean for your specific situation—and create a game plan based on your goals and your neighbourhood.