Blog Post Date March 19, 2025
By Don Almeida- Mortgage Expert and President of Happy Home Mortgage
Good news for anyone eyeing homeownership or renting in 2025—things are looking up! While affordability has been a major hurdle in recent years, the market is shifting in ways that might just work in your favor.
Home Prices: Slow and Steady Wins the Race
If you’ve been stressing over skyrocketing home prices, take a deep breath—2025 is bringing a much more balanced market. Home values are expected to grow, but at a slower pace, giving buyers a better chance to make moves without getting caught in crazy bidding wars. With more homes hitting the market, you’ll have more choices and a bit more negotiating power.
Mortgage Rates: A Refreshing Change
For those ready to buy, there’s another win—mortgage rates are expected to hold steady, and we might even see slight drops. That means locking in a home loan could be more affordable than in the past couple of years. Plus, spring is shaping up to be a great time to shop, with more sellers listing properties and competition heating up just enough to keep things interesting.
Renters: Expect Some Price Hikes, But Also More Options
Renting remains a solid option, and while rental prices are expected to rise, single-family rentals are becoming more available. The apartment construction boom is slowing down, but new single-family rental homes are popping up, giving renters more choices outside of traditional high-rise living.
Where’s the Action? Trending Markets for 2025
Some mid-sized cities are seeing steady growth, making them great places for young professionals and first-time buyers. Markets like Indianapolis, Providence, Hartford, and Philadelphia are expected to see price increases, which means those looking for long-term investments might want to jump in soon.
What About Florida?
For those dreaming of sunshine, Florida’s market is cooling slightly, making it more affordable than in past years. Orlando, in particular, is seeing stable prices, with homes going under contract in about a month. If you’ve been eyeing a move to the Sunshine State, this could be a great year to make it happen.
Game Plan for Young Buyers and Renters
If 2025 is your year to buy, now’s the time to prep. Focus on boosting your credit score, saving for that down payment, and getting pre-approved for a mortgage so you’re ready to pounce when the right home hits the market. Renters, on the other hand, should stay ahead by locking in leases early and exploring up-and-coming areas where rental growth is slower.
This year’s market is shaping up to be more balanced, more accessible, and—finally—giving younger buyers and renters a fighting chance. Whether you’re looking to buy your first home or find a great rental, 2025 could be the year you make it happen.
Sources:
- Zillow Home Value and Home Sales Forecast (March 2025)
- Florida Housing Market: 2025 Home Prices & Trends (Zillow)
- Orlando, FL Housing Market: 2025 Home Prices & Trends (Zillow)
- Winning Strategies: How Buyers Can Succeed in a Competitive Real Estate Market (Times Union)
