Expert Forecasts for the 2025 Housing Market
Wondering what’s in store for the housing market this year? And more specifically, what it all means for you if you plan to buy or sell a home? The best way to get that information is to lean on the pros.
Experts are constantly updating and revising their forecasts, so here’s the latest on two of the biggest factors expected to shape the year ahead: mortgage rates and home prices.
Will Mortgage Rates Come Down?
Everyone’s keeping an eye on mortgage rates and waiting for them to come down. So, the question is really: how far and how fast? The good news is they’re projected to ease a bit in 2025. But that doesn’t mean you should expect to see a return of 3-4% mortgage rates. As Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), says:
“Are we going to go back to 4%? Per our forecast, unfortunately, we will not. It’s more likely that we’ll go back to 6%.”
And the other experts agree. They’re forecasting rates could settle in the mid-to-low 6% range by the end of the year (see chart below):
But you should remember, this will continue to change as new information becomes available. Expert forecasts are based on what they know right now. And since everything from inflation to economic drivers have an impact on where rates go from here, some ups and downs are still very likely. So, don’t get caught up in the exact numbers here and try to time the market. Instead, focus on the overall trend and on what you can actually control.
A trusted lender and an agent partner will make sure you’ve always got the latest data and the context on what it really means for you and your bottom line. With their help, you’ll see even a small decline can help bring down your future mortgage payment.
Will Home Prices Fall?
The short answer? Not likely. While mortgage rates are expected to ease, home prices are projected to keep climbing in most areas – just at a slower, more normal pace. If you average the expert forecasts together, you’ll see prices are expected to go up roughly 3% next year, with most of them hitting somewhere in the 3 to 4% range. And that’s a much more typical and sustainable rise in prices (see graph below):
So don’t expect a sudden drop that’ll score you a big deal if you’re thinking of buying this year. While that may sound disappointing if you’re hoping prices will come down, refocus on this. It means you won’t have to deal with the steep increases we saw in recent years, and you’ll also likely see any home you do buy go up in value after you get the keys in hand. And that’s actually a good thing.
And if you’re wondering how it’s even possible prices are still rising, here’s your answer. It all comes down to supply and demand. Even though there are more homes for sale now than there were a year ago, it’s still not enough to keep up with all the buyers out there. As Redfin explains:
“Prices will rise at a pace similar to that of the second half of 2024 because we don’t expect there to be enough new inventory to meet demand.”
Keep in mind, though, the housing market is hyper-local. So, this will vary by area. Some markets will see even higher prices. And some may see prices level off or even dip a little if inventory is up in that area. In most places though, prices will continue to rise (as they usually do).
If you want to find out what’s happening where you live, you need to lean on an agent who can explain the latest trends and what they mean for your plans.
Bottom Line
The housing market is always shifting, and 2025 will be no different. With rates likely to ease a bit and prices rising at a more normal and sustainable pace, it’s all about staying informed and making a plan that works for you.
Let’s connect so you can get the scoop on what’s happening in our area and advice on how to make your next move a smart one.
JUST SOLD IN BOTHELL-KING COUNTY
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4
LISTED AT $1,125,000 BY COLDWELL BANKER BAIN SOLD FOR $1,135,000 BY REAL BROKER LLC
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4 Beds | 3 Baths | 1,940 sq.ft.
MLS # 2288454 LISTED AT $1,050,000 BY COLDWELL BANKER BAIN SOLD FOR $1,020,000 BY JOHN L SCOTT, INC
4 Beds | 3 Baths | 2,420 sq.ft.
MLS # 2306329
LISTED AT $1,100,000 BY HOMESMART REAL ESTATE SOLD FOR $1,140,000 BY COMPASS
3 Beds | 3 Baths | 2,150 sq.ft.
MLS # 2288327
LISTED AT $1,150,000 BY WINDERMERE BELLEVUE COMMONS SOLD FOR $1,120,000 BY WE LAKESIDE
3 Beds | 2 Baths | 1,680 sq.ft.
MLS # 2292356
LISTED AT $999,990 BY JOHN L SCOTT MILL CREEK SOLD FOR $1,160,000 BY RE/MAX NORTHWEST
Showcased on these two pages are 18 of the 62 single family homes that have closed in Bothell-King County in 4th Quarter 2024.
3 Beds | 3 Baths | 2,170 sq.ft.
MLS
4 Beds | 3 Baths | 3,000 sq.ft. MLS # 2263219 LISTED AT $1,675,000 BY WHISPER
6 Beds | 5 Baths | 4,050 sq.ft.
5 Beds | 4 Baths | 3,978 sq.ft. MLS # 2284756
5 Beds | 3 Baths | 4,440 sq.ft. MLS # 2270572
JUST SOLD IN BOTHELL-SNOHOMISH COUNTY
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3 Beds | 3 Baths | 1,460 sq.ft.
MLS # 2290180
LISTED AT $925,000 BY KW EVERETT SOLD FOR $915,000 BY REDFIN
$1,095,000 BY WINDERMERE BELLEVUE COMMONS SOLD FOR $1,095,000 BY WINDERMERE RE CENTRAL
3 Beds | 3 Baths | 2,438 sq.ft.
MLS # 2267362
LISTED AT $1,249,000 BY KELLER WILLIAMS REALTY PS SOLD FOR $1,125,000 BY ROOPA GROUP
4 Beds | 3 Baths | 2,042 sq.ft.
MLS # 2308960
LISTED AT $998,000 BY WINDERMERE RE MIDTOWN SOLD FOR $998,000 BY KELLER WILLIAMS EASTSIDE
5 Beds | 3 Baths | 2,622 sq.ft.
MLS # 2286897
LISTED AT $1,179,000 BY REAL PROPERTY ASSOCIATES SOLD FOR $1,145,000 BY RAIN TOWN REALTY + JPAR
Showcased on these two pages are 18 of the 205 single family homes that have closed in Bothell-Snohomish County in 4th Quarter 2024.
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4 Beds | 3 Baths | 2,769 sq.ft. MLS # 2300114
AT $1,400,000 BY REAL BROKER LLC
FOR $1,436,000 BY WINDERMERE RE/EAST
6 Beds | 4 Baths | 3,510 sq.ft.
MLS # 2286545 LISTED AT $1,680,000 BY SKYLINE PROPERTIES LLC
FOR $1,700,000 BY REAL BROKER LLC
4 Beds | 3 Baths | 2,800 sq.ft.
MLS # 2301885
AT $1,475,000 BY WINDERMERE RE/GH LLC
FOR $1,475,000 BY JOHN L SCOTT INC
4 Beds | 3 Baths | 3,044 sq.ft.
MLS # 2301804 LISTED AT $1,800,000 BY KELLER WILLIAMS REALTY BOTHELL
FOR $1,825,000 BY KELLER WILLIAMS REALTY BOTHELL
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3 Beds | 3 Baths | 1,810 sq.ft.
MLS # 2289603 LISTED AT $900,000 BY WEISBARTH & ASSOCIATES SOLD FOR $910,000 BY WINDERMERE REAL ESTATE, EAST
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Baths | 2,330 sq.ft.
MLS # 2305660 LISTED AT $949,950 BY HEATON DAINARD LLC SOLD FOR $970,000 BY SKYLINE PROPERTIES INC
3 Beds | 2 Baths | 1,280 sq.ft.
MLS # 2297801
LISTED AT $995,000 BY WINDERMERE REAL ESTATE GH LLC SOLD FOR $995,000 BY KELLY RIGHT RE OF SEATTLE
3 Beds | 3 Baths | 1,490 sq.ft.
MLS # 2294767
LISTED AT $950,000 BY KELLY RIGHT RE OF SEATTLE SOLD FOR $948,000 BY THE PREVIEW GROUP
3 Beds | 2 Baths | 1,480 sq.ft.
MLS # 2296803
LISTED AT $895,000 BY COMPASS SOLD FOR $865,000 BY WINDERMERE REAL ESTATE, EAST
Showcased on these two pages are 18 of the 50 single family homes that have closed in Kenmore-King County in 4th Quarter 2024.
4 Beds | 3 Baths | 2,027 sq.ft.
MLS # 2303403 LISTED AT $1,197,500 BY JOHN L SCOTT INC
3 Beds | 3 Baths | 2,420 sq.ft.
MLS # 2297391 LISTED AT $1,349,000 BY WINDERMERE RE GREENWOOD SOLD FOR $1,330,000
4 Beds | 3 Baths | 2,500 sq.ft.
5 Beds | 3 Baths | 3,130 sq.ft.
MLS # 2287341 LISTED AT $1,385,000 BY SKYLINE PROPERTIES INC SOLD FOR $1,299,900 BY SKYLINE PROPERTIES INC
4 Beds | 3 Baths | 2,220 sq.ft.
MLS # 2290256 LISTED AT $1,288,000 BY THE CASCADE TEAM
FOR $1,300,000 BY KW EVERETT
Beds | 4 Baths | 3,222 sq.ft. MLS # 2282757
4 Beds | 4 Baths | 3,345 sq.ft. MLS # 2298552
5 Beds | 4 Baths | 3,129 sq.ft.
MLS # 2305077
The Zehm Team Difference
Open and honest communication, a tireless dedication to fulfilling the needs of their clients and a commitment to educating their clients about the real estate process that describes the foundation upon which Aaron and Karen have built their successful real estate business that has flourished since 1999.
Both Karen and Aaron are Washington natives and are not only familiar with why people want to live in the Pacific Northwest, but also why many of those who leave, eventually return.
Areas of Expertise
The Zehms work Seattle, the Eastside and Snohomish County, both condominium and residential markets. Aaron’s expertise also includes the commercial market, working with clients looking for investment properties. “We know both the Seattle and the Eastside markets and how each one ticks,” says Karen. In addition, both have taken staging training and investment property analysis training. Aaron is e-Pro certified, a technical program that trains real estate agents to make the most of technology and the internet to best serve and keep in communication with their clients.
Commitment to Action…and Community!
Karen and Aaron share a very active lifestyle and the discipline and commitment required to sustain this lifestyle has them well-prepared for the rigors of real estate. Aaron had a previous career as a personal trainer and his other fitness interests include weight lifting, Cross Fit and martial arts. Karen is an avid runner and has completed several marathons and Ultra Runs. Karen is currently the President of the Bothell High School Volleyball Boosters Club. The Zehms are also active in their commitment to enriching the community in which they live and work. Both Karen and Aaron also participate annually in the Windermere Community Service Day in which agents in every community served by a Windermere office work on several projects to improve their local neighborhoods.
The Aaron and Karen Zehm “Get it Done Right” Difference
Aaron and Karen Zehm put their hearts, combined brainpower and even elbow grease into finding best solutions for buyers and sellers. When you work with the Zehms, you get two very experienced, different and complementary agents working the solutions. Aaron is calm, a great listener, good with the details and market trends. Karen is more outgoing, equally knowledgeable, patient and an awesome contract writer.
“We strongly believe in educating our clients on the real estate process and how the market works,” says Aaron. “At the same time, we listen carefully to what our clients want and don’t work on our own agenda.”
TRANSACTIONS
COMMERCIAL TRANSACTIONS
COMMERCIAL LEASE TRANSACTIONS
INVETMENT PROPERTY TRANSACTIONS
Five-Star Award 2004-2009 and 2020
Certifications and Designations Memberships
Staging Training through
Community Support
Online Marketing
Our online marketing plan makes sure that online buyers searching for homes are reached. With advertising on dozens of sites from Zillow, Redfin, REALTOR.com, and more, your listing will be found.
Broker to Broker
One of the best ways to get the most potential buyers into your home is to make sure that all the agents in the area know about it. We have great relationships with other local agents and you can be sure that the local agents are all notified.
Open Houses
When it makes sense to do so, open houses are a strong part of our marketing strategy for your home!
Determining the right price for your home is one of the most critical aspects of marketing. It’s true! A home that looks great and is priced along with other similar homes will be perceived as a good value, generating the most interested buyers.
We will help you set the price and position your property so it stands out in the market.
Market Pricing Photography & Video
High resolution, professional photography will be used to attract the 95% of homebuyers who are searching for properties online. We always have professional photography for the properties we list. Since buyers are searching for homes online first, we want them to be wowed even if they aren’t standing on the front porch. If warranted, we will also utilize drone photography.
Print Marketing
Buyers love to see visuals of your home and have something to take home with them. We create house flyers, just listed post cards and postcards. Print marketing is also a strong component of our marketing plan.
Thank You
Thank you for taking the time to look at our quarterly report. If you would like to have this emailed to you every quarter, please send an email to karenzehm@windrmere.com and we will get you added to our email quarterly report list!
