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Will Home Prices Ever Drop? Your 2025 Forecast

Home prices have risen sharply this past year. Whether you are looking to upgrade your current home or stop renting, you’re probably wondering if this market will ever slow down. Here’s what to expect over the next few years and how you can use increasing prices to your advantage.

The most recent Home Price Expectations Survey predicts home prices will continue appreciating over the next five years. This survey is put together from the predictions of over one hundred real estate experts, economists, market strategists, and other industry professionals.

The chart below shows what you can expect from now until 2025 based on their data:


While climbing home price appreciation is an obvious benefit to existing homeowners, new buyers can put it to good use as well. The amount of wealth and equity you can start building today is insane! Let’s look at where you could be if you purchased a $350,000 home at the start of this year and began benefitting from the rates listed above. As the graph below shows, a homeowner could grow their net worth over $93,000 by 2026!


Existing homeowners saw a third of that expected five-year increase in just one year. According to CoreLogic’s latest Homeowner Equity Insights Report borrowers gained an average of $33,400 over the past 12 months. That’s a significant amount of money! In the report, Dr. Frank Nothaft, Chief Economist for CoreLogic, goes on to say,

“Double-digit home price growth in the past year has bolstered home equity to a record amount. The national CoreLogic Home Price Index recorded an 11.4% rise in the year through March 2021, leading to a $216,000 increase in the average amount of equity held by homeowners with a mortgage.”

Home prices are on track to continue rising for the next several years. Getting into a home today will allow you to start building your wealth and equity immediately. Today’s homeowners also have the unique opportunity to leverage their current home to greatly increase their buying power.


The longer you wait, the harder your journey to a new home will become. Begin your consultation today so you can start benefitting from rising home price appreciation.

If you are a current homeowner looking to upgrade, now is a perfect time. We can help you use your rapidly growing equity to get into a home that better suits your needs. Just ask about our Trade Up program. Contact us to get started.


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