Our latest GVR Economics 2025 housing market forecast anticipates continued momentum heading into 2025, primarily driven by lower borrowing costs.

Sales are expected to continue building on the strong year-over-year gains over the past few months, before stabilizing in line with historical norms by mid-year. We also expect prices are to rise moderately by year-end 2025, supported by lower interest rates and tighter inventory levels in the latter half of the year.

Key highlights

Fundamental factors that drive our market such as household formation, population growth, and employment growth will remain fairly strong.
Lower borrowing costs are likely to further spur homebuyer demand.
Inventory levels for each market segment will play the deciding role as to whether prices appreciate or hold steady in 2025.