The Housing Market for the Second Half of 2025

What to Expect From the Housing Market for the Rest of 2025

One of the most common questions I get these days is: “What’s going on with the housing market, and what should we expect for the rest of 2025?” With so much uncertainty out there, it’s important to break things down into clear, manageable pieces. Here’s what I see unfolding over the next six months for buyers, sellers, and real estate investors alike.

1. Interest Rates Are a Key Player

Let’s start with interest rates—they’re the driving force behind many shifts in the housing market. Based on the latest industry reports and expert analysis, I believe we’ll see mortgage rates hold steady in the 6.5% to 6.75% range through the end of 2025.

There’s currently no strong indication that rates will drop significantly below that level anytime soon. So for now, it’s safe to assume this is our new normal—at least for the foreseeable future.

2. Inventory Is Increasing, and That’s a Good Thing

Another key trend—especially here in Northeast Ohio—is the gradual increase in housing inventory. Is a gradual increase in housing inventory. In the past, we were working with a one- to two-month supply, with homes flying off the market in just days, often with multiple offers.

That pace has started to cool, and that’s not necessarily a bad thing. Rising inventory is giving buyers more time and space to make thoughtful decisions. Instead of rushing to make an offer after a 15-minute showing, buyers can now shop more confidently and intentionally.

While we’re not in a full-blown transitional market just yet, it’s clear that things have stabilized compared to the frenzied conditions of 2021 and 2022.

3. Condition Matters More Than Ever

Lastly, we’ve noticed a significant trend when it comes to buyer behavior: today’s buyers are feeling financially squeezed.

Between higher interest rates, increased home prices, and closing costs, there’s simply less room left in their budgets for costly renovations. As a result, homes in move-in-ready or premium condition are still selling quickly, while properties that need work are often sitting longer or selling at a discount.

If you're a seller, that means prepping your home before it hits the market is more important than ever. And if you're a buyer, it’s worth exploring options that help you finance improvements into your purchase.

Our team offers programs designed specifically to help both buyers and sellers in today’s market—whether it’s getting your home show-ready or helping you fund renovations as part of your purchase.

Let’s Talk Strategy

Whether you're thinking of buying, selling, or just exploring your options, we'd love to connect. Navigating this shifting market doesn’t have to be overwhelming—with the right plan and the right support, you can still make a smart move in 2025.

Contact us today to talk about your goals and how we can help!

Jose Medina | Keller Williams Legacy Group Realty

📞 330.417.3144 | Jose@JoseSellsHomes.com