Price Cuts Ahead: Zillow Downgrades 2025 Housing Market Forecast

BiggerPockets Real Estate Podcast

BiggerPockets

Education, Business, Investing

4.8 • 16.5K Ratings

🗓️ 24 April 2025

⏱️ 23 minutes

🔗️ Recording | iTunes | RSS

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Summary

More price cuts could be coming this year. Zillow just made headlines by revising its 2025 housing market forecast, now predicting home values to drop in much of the United States. But do other top housing market forecasters agree, and if home prices fall this year, does it put you in a better position as an investor to lock down discounted deals? Dave is unpacking Zillow’s new prediction, plus sharing his own take on what might happen next. This is not the first time Zillow has revised its 2025 housing market forecast. They’ve updated their predictions several times throughout the year, with the newest release being the most negative for home prices. Some markets in the US are even predicted to see drops of up to 10%—other markets could have price growth, while the rest of the nation struggles. What’s causing the downward trend in home prices? Is it tariffs, inflation fears, signs of a recession, or just too much housing supply and insufficient demand? We’re breaking it down in this episode. If you plan on buying or selling this year, don’t miss this. In This Episode We Cover: Zillow’s new 2025 housing market forecast and why price declines seem likely The best and worst housing markets for home price growth (some could fall by 10%) What Fannie Mae, Wells Fargo, and JP Morgan are predicting for 2025 home prices Is this the start of a housing market crash, or just a break for buyers? What Dave is doing now to pick up more properties as home prices weaken And So Much More! Links from the Show Join BiggerPockets for FREE Let Us Know What You Thought of the Show! Ask Your Question on the BiggerPockets Forums BiggerPockets YouTube Apply to Be a BiggerPockets Real Estate Guest Get $100 Off BPCon 2025 Zillow Home Value and Home Sales Forecast (April 2025) Connect with Dave Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/real-estate-bonus-4 Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email [email protected]. Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	Zillow made some big news last week as they revised their housing market forecasts and are now predicting housing prices to fall on a national level.
0:09.5	But do they stand alone? What about other forecasts?
0:12.8	What are other experts saying?
0:14.7	And if prices do wind up falling and the buyer's market expands, is that a good thing or a bad thing for investors?
0:27.0	Hey, everyone, it's Dave Meyer, head of real estate investing at Bigger Pockets.
0:31.6	And in today's bonus episode of the Bigger Pockets podcast, I'm going to update you all on how
0:37.2	experts from across
0:38.8	the country are reacting to recent economic changes and how they are interpreting the potential
0:45.2	impacts for the housing market. I'll also give you my take on what it means for investors and
0:50.3	what my personal predictions are. Let's jump right in. So the big story making its rounds over the last week was about Zillow.
0:57.9	And you may have heard me talk about this on the show before,
1:01.2	but Zillow actually puts out a new housing market price forecast every single month,
1:07.8	predicting what's going to happen for the next 12 months going forward.
1:12.7	So the forecast that just came out in April actually shows what they expect to happen
1:17.2	between the period of March 2025 up until March of 26.
1:23.1	And for that time period, Zillow is now predicting price declines. At least on a national level,
1:29.8	they think housing prices are going to fall negative 1.9%. And this forecast change is notable
1:38.4	for a lot of reasons. You probably see tons of headlines, people predicting one thing or another,
1:43.1	but I actually think this story
1:45.8	is worth talking about for a couple of reasons. First and foremost, just one month prior,
1:52.8	Zillow was predicting that the housing market was going to grow, albeit very modestly. It's
1:57.1	not like they were saying we're going to have some banner year in the housing market. They
	...

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