Zillow Predicts Shocking Decline in Home Prices — What To Do If You’re Buying, Selling or Both
Written by
Adam Palasciano
Edited by
Amber Barkley
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If you’re in the market for a home, it’s not cheap these days. According to the Zillow Home Values Index, the current average U.S. home value is $361,263, representing a 2.1% increase over the past year and a whopping 44.5% increase since the onset of the COVID-19 pandemic in March 2020.
However, there’s some good news for buyers — and perhaps some less good news for sellers — this year.
Zillow’s April 2025 Home Value and Home Sales Forecast predicted a decline in home values and an increase in existing home sales for 2025. Home values are anticipated to fall 1.9% this year; meanwhile, home sales are projected to reach 4.2 million, which represents a 3.3% increase from 2024.
Here’s what to do if you’re buying, selling or both.
What To Do If You’re Buying a Home
If you’re buying a home, you may want to wait a little bit longer. With a projected decline in home values later in 2025, you could snag a better deal and have more leverage at the negotiating table.
Even a small savings on the cost of your next home could translate into big savings when you factor in the cost of mortgage interest accrued over time.
What To Do If You’re Selling a Home
If you’re selling a home, you may want to act fast. You may have the potential to net a larger profit on the sale of your current home now, versus if you sell later this year.
What To Do If You’re Buying and Selling
With all that being said, if you’re looking to buy and sell a home this year, it’s important to recognize that a more favorable market is anticipated for buyers and perhaps a somewhat less favorable market is on the horizon for sellers.
If you’re selling your current home and planning to buy and move in to a new one, it may be difficult to get the timing just right for the best deal on both. If you buy too early, you could end up paying more, but if you sell too late, you might make less on the sale.
You might consider a temporary living situation in the meantime — like staying with friends or family or even renting a short-term apartment on long-term Airbnb — but it’s likely better to sell and buy when the timing works best for your life and finances than try to time the housing market.
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Sources
- Zillow, “United States Housing Market.”
- Zillow, “Zillow Home Value and Home Sales Forecast (April 2025).”
