Berkshire Hathaway’s Bold 2025 Housing Prediction: What Home Buyers Can Expect

Berkshire Hathaway HomeServices (BHHS) has released its 2025 housing market forecast, highlighting several key trends:

• Mortgage Rates: Rates are expected to remain above 6% through at least 2026, influenced by the 10-year Treasury yield and federal funds rate.
• Home Prices: A projected increase of approximately 3.7% in 2025, indicating a slower growth rate compared to previous years but still outpacing inflation.
• Housing Supply: An anticipated 11.7% rise in existing home inventory compared to 2024, with homebuilders planning to construct around 1.1 million new homes—a nearly 14% increase from the prior year.

Despite these developments, affordability remains a significant challenge. High mortgage rates and rising home prices continue to make homeownership difficult for many, with 78% of non-homeowners citing affordability as the primary barrier.

Political and economic factors also play a crucial role. Potential policy changes, such as reducing construction regulations and utilizing federal lands for housing, could impact the market dynamics.

For prospective homebuyers, understanding these trends is essential for making informed decisions in the evolving housing landscape.