Housing Market Outlook: What to expect in the second half of the year.

The first half of the year has been full of questions for buyers and sellers alike — from rising home prices to the rollercoaster of mortgage rates. If you’ve found yourself wondering whether now is the right time to make a move, you’re not alone.

Fortunately, we’re beginning to get clearer answers. Real estate experts are starting to release their updated housing market forecasts for the remainder of the year, and the outlook is more encouraging than you might think. According to Business Insider’s summary of recent projections, there are a few key trends to watch.

Let’s take a closer look 🔍

1. Mortgage Rates May Dip Slightly

While no one’s predicting a major drop, many economists anticipate a modest decline in mortgage rates as the broader economic picture becomes more stable. Based on current data, here’s where rates are expected to land by year-end:

Photo credits: Keeping Current Matters

Even a slight drop in rates can have a real impact — helping to reduce your future monthly payment and improve affordability.

That said, rates are still highly sensitive to economic shifts such as inflation and employment data. Timing the market perfectly is a gamble, so it’s best to plan with some flexibility and expect occasional volatility.

2. Inventory Is Expected To Keep Climbing

So far this year, inventory has been on the rise — and there’s a clear reason behind it. Many homeowners who delayed listing their homes due to high interest rates are beginning to re-enter the market. Waiting for a perfect moment hasn’t proven productive, and life often demands a move regardless of market conditions.

Experts expect this trend to continue. As Lance Lambert, Co-founder of ResiClub, notes:

“The fact that inventory is rising year-over-year . . . strongly suggests that national active housing inventory for sale is likely to end the year higher.”

If rate trends continue on their current path, we could see even more homeowners feel confident enough to list, giving today’s buyers additional choices and negotiating power.

3. Home Prices Are Moderating

With more homes coming to market, the days of fast-paced home price surges may be behind us — at least for now. While prices are still expected to rise this year, the rate of growth is slowing.

According to the average of seven major forecasts, home prices are expected to increase about 2% by year-end:

Photo credits: Keeping Current Matters

For buyers, that’s welcome news. When paired with potentially lower rates, this could translate to more breathing room and improved purchasing power.

It’s important to remember, though: real estate is local. National trends provide a broad overview, but your local market conditions may differ — especially if your area sees a significant increase in inventory. Some regions will continue to see steady price appreciation, while others may flatten or even soften slightly. That’s why working with a local expert is so valuable.

Bottom Line

If you’ve been waiting for a clearer picture of the housing market, this may be your sign. Conditions are shifting in a direction that favors movement, whether you’re buying, selling, or both. With expert projections showing increased inventory, moderating prices, and a slight drop in rates, now might be the right time to explore your options.

Let’s connect to talk about what these trends mean for you and your local market.

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