The Housing Market Could Be ‘Thawing’ in 2025: 5 Things That Could Mean for Homebuyers
Written by
Chris Adam
Edited by
Jenna Klaverweiden
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The “frozen” housing market may be showing signs of thawing in 2025. According to MarketWatch, homebuyers may be getting used to the housing market and jumping in. In fact, as it reported early in 2025, home transactions and consumer sentiments have warmed up a bit.
GOBankingRates talked to some real expert experts to find out what all of this could mean for buyers.
A Healthy Market
Simon Isaacs, CEO and founder of Simon Isaacs Real Estate, said something to keep in mind is that many people may be a bit worried about their own economic health with the uncertainties surrounding the tariffs from President Donald Trump.
“Ultimately, I do not think that’s going to hugely affect the market here,” Isaacs said. “It may slow it down a bit, but I think that for the rest of 2025, we are going to see a very healthy market.”
Isaacs noted that his comments apply to single-family homes. On the apartment front, he said we have a lot of inventory coming, and he thinks that will ultimately ease up because of the number of apartments that will be available.
An Inventory Shift
“I see the early signs of a thaw starting to play out, especially in coastal luxury markets like La Jolla and Rancho Santa Fe where I work,” said Joy Aumann, a licensed Realtor and founder of LuxurySoCalRealty.
She noted that inventory is inching up — not dramatically, but enough that buyers are feeling a shift. Sellers who’ve been sitting tight are finally testing the waters again.
Less Pressure and More Choices
Because of this inventory shift, homebuyers could end up feeling less pressure and having more choices.
“For homebuyers, this means less pressure, more choices and slightly more breathing room — but it’s not a return to a buyer’s market,” Aumann said. “Mortgage rates hovering around 6.8% are still holding back some would-be buyers, especially in the entry and mid-tier segments.”
Creative Financing Options
In the mainstream market, per Aumann, affordability is still a major hurdle, though there are alternative financing options buyers are considering.
“Median home prices are up 5.5% from last year, and that’s with rates still elevated,” Aumann said. “So even if inventory increases, if rates don’t fall meaningfully, the entry-level buyer might not benefit right away.”
Aumann said she sees more creative financing happening again, with buydowns, adjustable-rate mortgages and seller credits.
Momentum in Luxury Markets
Aumann said the luxury market is thawing slower but smarter.
“Luxury behaves differently,” Aumann explained. “We aren’t seeing the same price volatility. So yes, the ice is cracking, but it’s uneven. The broader market may take until mid-2025 to feel noticeably different, especially if rate cuts don’t materialize fast. But in the upper tier, I see the momentum already building — quieter, more calculated, but definitely real.”
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