What’s Ahead: Real Estate Trends to Watch in Late 2025

As we move into the second half of 2025, the housing market continues to shift in subtle but meaningful ways. While some areas are seeing modest price gains, others—especially those with increased inventory or slower buyer demand—are experiencing price stability or slight declines.

So, what does this mean for buyers and sellers trying to make sense of the current landscape?

Here’s a closer look at the key trends shaping our real estate market as we close out the year.

Home Prices: A Mixed Picture

CoreLogic still projects a nationwide price increase of around 2% for 2025, but the reality on the ground is more nuanced. In some regions, including parts of Colorado—we’re seeing prices stabilize or even decline slightly, particularly in segments of the market where inventory has grown or buyer activity has slowed.

That said, desirable neighborhoods with limited listings and strong demand continue to hold their value—and in some cases, even appreciate modestly. It’s very much a local market, and conditions can vary dramatically from one zip code to the next.

Mortgage Rates: Easing, but Gradually

Mortgage rates have hovered between 6% and 7.4% for most of the year. While we haven’t seen dramatic drops, several industry experts—including Lawrence Yun from the National Association of Realtors—believe rates will soften slightly as we head into 2026.

Even a modest dip can help improve affordability and motivate more buyers who have been sitting on the sidelines to re-enter the market.

Affordability Remains a Hurdle

Affordability is still a top concern for many buyers. Elevated home prices combined with higher interest rates mean monthly payments remain a stretch—especially for first-time buyers and move-up buyers without large amounts of equity.

The silver lining? New inventory is slowly coming online, and more sellers are beginning to price realistically, offering buyers more negotiating room and, in some cases, seller incentives.

Key Trends to Watch Through Year-End

Here are the top three forces likely to shape the market in the final months of 2025:

1. Job Growth Is Fueling Housing Demand

The U.S. economy is on pace to add over 2 million jobs this year. Job creation supports long-term demand for housing and keeps many local markets resilient, including here in Northern Colorado where quality of life continues to attract professionals and families from out of state.

2. New Construction Is Slowly Building Momentum

After a long period of underbuilding, we’re finally seeing more new construction activity, especially in growing areas and communities with available land. While not an instant fix, it’s adding much-needed inventory to the market and giving buyers additional choices.

Builders are also getting creative with incentives, including rate buydowns and flexible move-in timelines, which can help ease affordability concerns.

3. The “Lock-In” Effect Continues to Limit Resale Inventory

Many homeowners are still holding onto sub-4% mortgage rates, making them hesitant to list unless they absolutely must. This is keeping the resale inventory tight. However, if mortgage rates fall even slightly, we may see some of these homeowners finally make their move—particularly those motivated by lifestyle changes, job relocations, or downsizing needs.

What Does This Mean for You?

The second half of 2025 isn’t expected to bring major swings—but it is offering a window of opportunity for both buyers and sellers who are informed and well-prepared.

If you’re a buyer, this market may give you more room to negotiate and time to think, especially in areas where listings are lingering a bit longer.

If you’re a seller, strategic pricing and strong marketing are more important than ever. Homes that show well and are positioned correctly are still selling, especially in high-demand neighborhoods.

Whether you’re thinking of making a move this year or just want to explore what’s possible, I’m here to help you navigate the market with clarity and confidence.

Let’s talk about your next chapter—on your timeline, and with the right strategy.