Agents, Buyers, and Sellers Share Their Housing Market Predictions for 2025

Seller’s vs. Buyer’s Market in 2025 | Mortgage Rate Challenges | Home Buyers May Forgo Real Estate Agents | Agents Optimistic About 2025 | Why 2025 Buyers and Sellers Are Moving | Methodology | FAQs

As 2024 winds to a close, the real estate world has already turned its attention to the coming year. After years of a solid post-pandemic real estate market, 2024 was a mixed bag for home buyers, sellers, and real estate agents, thanks to elevated mortgage rates and still-low inventory in many areas.

Agents are also still sorting out the results of 2024’s landmark settlement in the lawsuit against the National Association of Realtors, which significantly altered the rules on how commission is paid and by whom. 

However, with reduced interest rates, shifting demand, and other economic and societal changes, 2025 could bring big changes to the real estate market — or offer more of the same.

To find out more, Clever surveyed 1,000 American adults who expect to buy or sell a home in 2025 about their plans and predictions for their transactions and the housing market overall. In addition, we asked 340 real estate agents from the Clever network about their expectations for the housing market, as well as their own jobs. 

All of these groups expect 2025 to remain a seller’s market, although agents are much more evenly split, suggesting those closest to the industry might see more positive signs for would-be buyers than even buyers themselves. 

Although 85% of real estate agents are optimistic about the coming year, 41% of buyers and 20% of sellers are at least considering handling their 2025 transactions without an agent. 

Meanwhile, buyers and sellers are sharing their thoughts on potential challenges, such as mortgage rates, finding homes, and perhaps most importantly, the prices they are expecting to pay.    

Agents, Buyers, and Sellers See 2025 as a Seller’s Market

Five years after the COVID-19 pandemic sparked a massive boost in home buying, there’s no sign the optimism is wearing off. 

Large majorities of real estate agents, buyers, and sellers think 2025 will be a good time to buy a home. Still, it’s critical to note the difference between these groups: 89% of real estate agents believe 2025 will be a good time to buy, compared to 72% of buyers, and just 68% of sellers. 

Agents (92%) are also more likely than sellers (84%) or buyers (75%) to say 2025 will be a good time to sell a home, too.

Overall, more home buyers and sellers believe 2025 will be a seller’s market (42%) than a buyer’s market (33%). However, real estate agents are split, with 40% expecting a seller’s market and 37% a buyer’s market.

Nearly half of buyers (45%) and sellers (47%) expect home prices in their local market to increase in 2025, which is 2x and 3x more, respectively, than buyers (22%) and sellers (15%) who expect prices to decrease. 

A majority of agents (58%) agree that home prices will rise in 2025. However, they aren’t expecting the explosive growth of the early 2020s to continue, with more than half (52%) expecting increases of less than 10% and more than a quarter (28%) seeing even more modest price hikes under 5%. 

It’s worth noting that more than 1 in 5 agents (22%) believe home prices will decrease in 2025, something rarely seen in most areas since the Great Recession. 

Even a slight increase may be too much for some would-be buyers already stretched by years of inflation and rising housing costs. Two-thirds of buyers (68%) are worried that rising home prices will force them to delay their purchase. Meanwhile, almost half of buyers (48%) expect to need financial help, such as down payment assistance programs. 

Expectations about another year of home price gains appear to be fueled by Americans’ seemingly unstoppable demand for homes. About 87% of home buyers and sellers believe buyer demand will be the same or higher in 2025 compared to 2024. That’s still lower than the 94% of agents who say the same.

Nearly Every 2025 Home Buyer and Seller Sees Challenges Ahead

With strong demand and confident sellers looking to make the most of their valuable homes, those planning on buying in 2025 don’t see smooth sailing ahead. An overwhelming 98% expect to face challenges, with finding the right home (57%) most significant among them. Half (49%) are concerned about staying within their budget, and 42% see mortgage rates as a challenge. 

More than 1 in 4 (29%) expect trouble from competition with other buyers. That’s far less than the 74% of sellers who expect to negotiate multiple offers on their 2025 sale.

Aside from their personal buying situation, buyers also expect challenges from broader housing market and economic trends. About two-thirds are concerned about low housing inventory (64%) or still believe inflation will impact their ability to buy a home (68%), even as data shows it dropping closer to more typical levels.  

For all their confidence in the market, sellers aren’t worry-free either. A similar 95% of 2025 home sellers expect to face challenges when selling their homes. 

The most common challenge is preparing the house for sale (46%) — a process that can be time-consuming or expensive in some cases. More than a third see dealing with necessary pre-sale repairs and renovations (36%) and pricing the home correctly (34%) as challenges.

At the same time, only 1 in 8 (12%) worry about low buyer demand, suggesting sellers don’t believe high home prices and elevated interest rates are a significant risk going forward.

Expectations vs. Reality for Home Buyers and Sellers

Despite having broadly similar expectations for the 2025 housing market, buyers and sellers may encounter some critical differences when it comes to making and receiving offers. 

Home buyers anticipate spending an average of $386,507 on their homes in 2025. That’s less than the median price of homes sold in the United States, which was just over $420,000 in the third quarter of 2024. 

Meanwhile, sellers expect to sell their properties for an average of about $413,976, a difference of $27,000 from what buyers plan to pay.

A $27,000 gap is significant, but a closer look at the numbers reveals the difference could be even greater among the most unprepared. First-time buyers are likely in for the rudest awakening, as they expect to pay just $331,546 on average for their homes in 2025, more than an $82,000 shortfall compared to sellers’ expectations. 

Repeat home buyers may actually overestimate how much they’ll need to spend, expecting to pay an average of $436,682, which is nearly $23,000 more than the average seller is looking for.

Sellers are quite confident in the value of their homes, with nearly three-quarters (74%) saying they’d consider pulling their property off the market if they can’t get their desired price. More than one-third of buyers (35%) don't expect to purchase a property at or above the asking price, but 85% of sellers think they’ll sell at or above asking. 

There’s also a mismatch in how quickly each side expects the process to go. More than half of buyers (58%) are preparing for their search to take more than four months from the start until closing. However, almost three-quarters of sellers (72%) expect the process to take fewer than four months. 

Around a third of sellers (34%) foresee the sale taking two months or fewer from listing to closing, which is more than 3x the number of buyers who think they’ll find and close on a home in this amount of time (11%). 

Agents have an even more optimistic view, with 78% saying they think the average time on the market in 2025 will be under three months. Just over half of sellers (56%) believe that.

After years of watching their home value increase, it appears many sellers are feeling confident in their real estate knowledge. Agents — and the numbers — don’t always agree, though. Almost a third of 2025 home sellers (31%) say a property’s location is the single most important factor influencing the speed of a home sale, followed by buyer demand (22%) and listing price (16%). 

Real estate agents see things far differently, with nearly half (49%) saying the listing price is the most important factor, which is more than 3x the next-highest factor: buyer demand (14%).

In addition, two-thirds of 2025 sellers (67%) plan to spend less than $20,000 on additional home-selling costs, such as commission, closing costs, repairs, and other sales-related expenses. Nearly half (48%) expect to spend less than $10,000. 

Yet even the larger number is less than half of the true cost of selling a home, according to previous Clever research, which found these expenses typically reached more than $54,000.

Over 40% of Buyers See Mortgage Rates as a 2025 Challenge

Getting a mortgage is often one of the most critical aspects of buying a home, and it’s no secret that elevated rates have had a noticeable impact on the market.

About 83% of prospective 2025 home buyers expect to use a mortgage to finance their deal. However, roughly half of them (42%) say mortgage rates are a challenge in their buying process. A similar number (41%) are worried about qualifying for a mortgage, regardless of the rates they might face. 

Buyers may be especially sensitive to rates because relatively few are putting down the once-standard 20% down payment. Almost two-thirds of buyers (61%) expect to put down less than 20%, with roughly a third (32%) planning a down payment of less than 10%. 

Fortunately, most real estate agents see a light at the end of the tunnel, with 80% saying they believe rates will fall in 2025. 

Salt Lake City agent Ryan Larsen believes mortgage rates will drive demand in 2025 —  a view shared by 58% of other agents, who see interest rates as the most influential factor in the 2025 market. That’s 3x more than the next most common answer, housing inventory (17%). 

"If rates stabilize or decrease, we may see more buyers entering the market, but if rates rise, affordability will decline, leading to slower price growth and fewer transactions," Clever agent Anna Fine, who serves the San Jose, California, area, said.

Sellers are optimistic on this front, with fewer than 1 in 4 (24%) worried that rising mortgage interest rates will affect buyers.

80% of Home Sellers Plan to Use an Agent, but 41% of Buyers Would Consider Purchasing Without

Real estate agents have been a part of the home-buying and selling process for generations. But there are indications that could be changing in 2025, at least for some.

More than three-quarters of 2025 home sellers (80%) plan on using an agent to sell their home, with another 9% planning to sell by owner and 3% planning to use a flat fee MLS.

However, 41% of 2025 home buyers are at least considering buying a home without an agent. Although few have made a final decision or fully understand the extra work and risks required to sell without an agent, it’s a potentially significant red flag for the future. 

Buyers who do decide to work with agents are typically looking for a deal. Almost two-thirds of buyers (62%) plan to negotiate their agent’s commission. Often, this can be a fruitful strategy. Almost half of agents (47%) see buyer’s agent commission rates decreasing in 2025, with a third (34%) saying the same for listing commission rates. 

Despite changes instituted as part of the NAR commission settlement, 69% of buyers expect the seller to pay for their agent’s commission as they have in the past, even if they’re no longer required to do so. Meanwhile, just 29% of sellers say they plan to do this.

More than two-thirds of buyers (68%) say they’ll budget for the cost of a buyer’s agent just in case the seller refuses, but this might be overly optimistic. When confronted with the average buyer's agent commission cost of $12,000,  63% of would-be home buyers say it would make them less likely to buy a home.  

In general, agents worry overhauling the way commission has traditionally been paid could cause issues in the coming year. 

"I believe that the biggest challenge in 2025 will be the new commission regulations,” Los Angeles agent Ron Murray said. “So far, I have noticed that the vast majority of real estate agents do not understand it correctly, and the majority of real estate company management is not explaining it correctly."

Nearly Three-Quarters of Agents Expect More Competition From AI, Other Technology

The proliferation of user-friendly real estate technology has no doubt played a role in many buyers feeling they could do without a traditional real estate agent. Almost every buyer (97%) plans to use some sort of tech to help in their home search, most commonly online listings (88%). 

However, a notable amount expect to use newer, even more high-tech methods, such as social media platforms (26%) or AI-driven property recommendations (14%). This is no surprise to 71% of real estate agents, who believe they’ll face more competition from technology, such as AI and automated platforms, in 2025.

In the face of new technology and other market changes, many agents are looking to remind buyers and sellers of their value. Nearly all agents (93%) are planning to adapt their business strategies in the coming year. 

More than half (57%) plan to focus more on sellers than before, and 46% expect to increase their marketing efforts. Around a quarter plan to partner more with other professionals (27%), expand into other real estate markets or locations (24%), and offer more services (24%), such as staging or remodeling.

However, relatively few expect to lower (6%) or raise (4%) their standard commission rate.

"I think the bottom line is agents need to up their education," agent Dionne Randle of Houston said. "You must be a real professional and be able to assist your clients with their decision-making." 

85% of Real Estate Agents Are Optimistic About 2025

Even with the looming threats of new technology, shrinking commissions, and the many other risks that come with working in a boom-or-bust industry, 85% of real estate agents have an optimistic outlook for 2025, and 70% believe the market will be more stable. 

Almost every real estate agent (92%) expects that 2025 will have a similar or better real estate market than 2024, and 75% expect that it will be the same or better than 2023. 

However, they’re not counting on matching the booming post-pandemic market, with around three-quarters believing 2025 will have a similar or worse market than 2022 (72%) or 2021 (78%). 

Perhaps most importantly, only 9% of agents foresee a housing crash in 2025.

Agents feel just as positively about their own careers as the market overall, with 94% saying they’re optimistic about the year ahead. About half (48%) believe they’ll make more in commission in 2025 than in previous years — 4x the number who expect to make less (12%). 

However, just 85% are optimistic about agents and brokerages in general in 2025. Past Clever surveys have found that 86% of agents expect recent changes in commission structure will cause Realtors to leave the industry, with less experienced agents feeling the brunt. 

One thing they’re decidedly unworried about is the housing market itself. About 87% have an optimistic outlook regarding housing demand in 2025. More than half (55%) think first-time homebuyers will have more opportunities in 2025.

Still, agents’ optimism doesn’t come without a dose of realism about the potential for trouble ahead. Almost all (96%) expect the real estate market to face challenges in 2025. Chief among them are overall economic uncertainty (56%), declining home affordability (54%), and low housing inventory (51%).

Twice as Many 2025 Movers Are Upgrading Than Downsizing

Buyers and sellers, not to mention agents, can always benefit from learning more about why their counterparts are doing what they’re doing. About a quarter of those moving in 2025 will do so to upgrade to a larger home (24%), nearly 2x the number who say they’re moving to downsize (13%).

Buyers (28%) are substantially more likely than sellers (19%) to say they’re looking for a larger space, while the opposite is true for those downsizing. About 24% of sellers say they need less space, compared to 10% of buyers. 

Financial reasons are the motivation for another 1 in 8 moves (12%). 

The suburbs are expected to remain a popular choice for home buyers, with more than twice as many planning to buy a home there (55%) compared to rural (24%) or urban markets (21%). This is a relatively good match with the homes likely to be available, as 64% of sellers say their homes are located in suburban areas. 

Buyers seem willing to put in some elbow grease, especially if it helps them get a deal on their new home. More than half (53%) would be open to buying a fixer-upper, substantially more than those looking to purchase a newly constructed home (34%).

Another third of potential buyers (32%) plan to buy a home in a different state, suggesting that domestic migration during the post-COVID era hasn’t stopped yet. 

At the same time, two-thirds (66%) say the potential cost of homeowners insurance is an important factor when looking for a home, a warning sign for fast-growing states such as Florida and Texas, which also have some of the country’s highest home insurance rates. 

Just over half of buyers (51%) are purchasing their home with their spouse, with another third (32%) buying alone. Only 6% are buying with a non-spouse partner, and 5% are buying with a parent or other family member.

Over Three-Quarters of 2025 Buyers Are Skeptical of Seller Claims — With Good Reason

A whopping 81% of buyers believe sellers exaggerate or lie about their home's features to make a sale. This might sound a bit paranoid until you hear from sellers themselves. 

About 40% admit they’d use wide-angle photos and editing to make their home appear larger in the listing. Buyers visiting a property can quickly figure out if a home isn’t as roomy as it seemed, but with other problems, it’s not always so easy.  

Over a quarter of 2025 home sellers (27%) would knowingly fail to mention minor repairs to make their homes seem more appealing. About 1 in 6 (16%) would exaggerate the quality of their home’s features, and 1 in 7 (14%) would try to cover up issues with their home by concealing mold, covering up a hole, or painting over cracks. 

Although these tactics might seem convenient at the time, they can put sellers at legal risk because most areas require disclosing hidden house defects. For buyers, it highlights the importance of a proper home inspection. 

Methodology

Clever Real Estate surveyed 1,000 American adults who plan to buy and/or sell a home in 2025 on their plans and predictions regarding their 2025 housing transaction. This survey was conducted Oct. 24-26, 2024.

Clever Real Estate also surveyed 340 real estate agents on their views and predictions for the 2025 residential real estate market. This survey was conducted Oct. 24-Nov. 2, 2024.

About Clever

Since 2017, Clever Real Estate has been on a mission to make selling or buying a home easier and more affordable for everyone. Twelve million annual readers rely on Clever's library of educational content and data-driven research to make smarter real estate decisions—and to date, Clever has helped consumers save more than $160 million on realtor fees. Clever's research has been featured in The New York Times, Business Insider, Inman, Housing Wire, and many more.

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