For the first time in over a decade, US housing prices are expected to decline, according to Zillow’s Home Value Index. This year, the index forecasts a 0.8% drop by the end of 2025, marking the first annual decrease since 2011.
Zillow senior economist Orphe Divounguy sees this as a buyer’s market. High mortgage rates and economic uncertainty have reduced competition, while growing inventory has given buyers more negotiating power. In July, 27% of listings included price cuts, the highest rate since January 2018. With these factors in place, Divounguy advises those who can buy to take advantage of this opportunity, as the market is poised for a shift towards buyers gaining the upper hand.
Source: https://www.bloomberg.com/news/articles/2025-08-11/is-now-a-good-time-to-buy-a-house-a-zillow-economist-says-yes