As we approach 2025, housing analysts forecast an average 2.5% increase in U.S. home prices for the year. Among major forecasters, Goldman Sachs is the most optimistic, predicting a 4.4% rise, while Moody’s projects a more modest 0.3% increase.

 

Key factors shaping the housing market include the ongoing lack of supply and affordability concerns, which could limit price growth in some regions. Analysts also note that while national home prices are expected to rise, certain regional markets, particularly around the Gulf, may experience softening.

 

The labor market and housing supply will be crucial indicators to watch in the coming months.