BiggerPockets Daily Zillow Makes Another Revision to Its Home Price Forecast
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Jul 29, 2025 Zillow has dramatically revised its home price forecast for 2025, now anticipating a 2% decline in U.S. home prices. This shift is driven by increasing inventory and affordability struggles. The discussion dives into which cities might struggle the most and which could see appreciation. Listeners gain insights on navigating today’s real estate market, highlighting the buyer's advantage amid rising listings and the need for investor caution in these changing dynamics.
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Zillow's Home Price Forecast Shift
- Zillow revised its 2025 home price forecast from a 2.6% increase to a 2% decline.
- The forecast changed due to market cooling and inaccurate mortgage rate predictions earlier this year.
Supply and Affordability Weigh Down Prices
- Rising active listings and affordability challenges are causing price drops.
- High prices and mortgage rates push buyers to rent, increasing inventory and lowering demand.
Regional Market Variations in 2025
- Some markets like Atlantic City see moderate appreciation around 2-3%.
- Louisiana markets face steep declines nearing 10%, with other Sunbelt cities also declining.