When Will Home Prices Drop?
Will Home Prices Drop in Late 2025?
Homebuyers and sellers are asking the same question: “When will prices finally fall?” According to Forbes Advisor, the chance of a rapid housing crash in 2025 is low. Instead, experts predict a gradual slowdown—with very modest price declines in select regions.
🔍 What the Experts Predict for Late 2025
📉 Slow Appreciation or Small Declines
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The National Association of Realtors and Fannie Mae forecast around 3% price growth in 2025, and closer to 2% in 2026, effectively flattening values.
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Moody’s chief economist, Mark Zandi, suggests some markets—particularly Miami, Orlando, and Dallas—may see price declines up to 5% as inventory rises and rates stay elevated.
📊 Buyer Power Grows as Inventory Rises
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Bankrate and Compass report inventory is up year-over-year; nearly 34% more listings mean buyers can negotiate, and 37% of builders have cut prices, averaging 5% reductions.
📈 Rate Cuts Unlikely Until 2026
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Rates have stayed stubbornly high around 6.5–6.8%, discouraging many buyers.
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While futures markets anticipate rate cuts only in late 2025 or early 2026, prices likely won’t drop significantly until then unless mortgage rates fall further.
🌴 What It Means for Florida Buyers & Sellers
📌 For Buyers:
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You might see small price dips (~3–5%) in markets with high inventory—especially in parts of Florida like Miami-Dade.
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But strong equity and limited supply in many areas mean broad declines are unlikely.
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If you’re financially ready, it may be better to act sooner than hoping for big drops.
📌 For Sellers:
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Pricing wisely is key. Overpricing can delay sales in slowing markets.
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Highlight upgrades and staging to attract buyers in competitive submarkets.
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Consider short-term incentives to stand out among rising inventory.
🗣️ Expert Insight
“There’s currently no build-up of distressed sellers or subprime loans to fuel a crash. Instead, homebuyers who are ready may finally break free from waiting on interest rates.”
— Echoes from Forbes analysis and Bankrate senior analysts.
Bottom Line
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A serious housing crash is unlikely in late 2025.
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Buyers in Florida may find local deals if inventory rises, but widespread declines won’t happen unless rates drop sharply.
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The most important factors remain: personal readiness, market timing, and local MLS conditions.
📞 Ready to Make Your Move?
Whether you’re looking to buy or sell in Florida, having real-time intelligence on interest rates, inventory, and pricing trends is critical.
Contact Laura Graves Real Estate for an expert market review tailored to your city.
