2025 Housing Market Outlook for Buyers & Sellers in North Idaho

Good News Ahead for Buyers and Sellers: What to Expect in the Housing Market for 2025

It’s no secret—rising mortgage rates have made the real estate market a bit trickier in the past couple of years. If you’ve been holding off on buying or selling, you’re not alone. But here’s the good news: industry experts say brighter days are on the horizon.

During a recent national real estate forum in Washington, D.C., Lawrence Yun, Chief Economist for the National Association of REALTORS®, shared some encouraging insights for those thinking about entering the housing market. He predicts mortgage rate cuts as soon as this fall, which could open the doors—literally and figuratively—for many would-be buyers and sellers.

Why This Matters for Buyers

If you’ve been watching interest rates rise and feeling discouraged, take heart. Even with recent challenges, more than 70% of renters say they still dream of owning a home. And with rates expected to ease later this year, your window of opportunity could be approaching.

Lower rates = more purchasing power. That means you may qualify for a higher-priced home, or simply enjoy lower monthly payments.

Inventory is improving. New construction has picked up pace, and more existing homes are expected to hit the market—giving you more choices.

Prices are still going up, but gradually. A 3% rise is forecasted for 2025, so jumping in sooner could benefit your long-term investment.

Mortgage Payments Are Easing: As this chart shows, after a steep climb in recent years, mortgage payments have begun to stabilize—great news for anyone waiting for a more affordable moment to buy.

Why This Matters for Sellers

Sellers—this isn’t just good news for buyers. When rates go down, demand goes up. That pent-up pool of buyers who’ve been waiting on the sidelines? They’ll be ready to make moves.

Home values remain strong. Over the past five years, median home prices have increased significantly—boosting homeowner equity across the country.

Homeownership continues to be a major wealth builder. In fact, the net worth of homeowners is estimated to be 43 times higher than that of renters.

The Wealth Gap Is Real: This powerful graphic shows the long-term value of homeownership. If you’re still renting, it might be time to consider putting your money into something that grows.

A 6% increase in existing home sales is expected for 2025, with an even larger bump in 2026. That means more movement in the market and more opportunities to sell at a competitive price.

What This Means for Buyers and Sellers in North Idaho

In areas like Coeur d’Alene, Post Falls, Hayden, and the surrounding communities, the local market has mirrored many national patterns—tight inventory, cautious buyers, and steady price growth.

For buyers, this means more homes may be hitting the market soon, giving you the chance to find that right-fit property without the bidding wars of 2021 and 2022.

For sellers, it means you're still in a strong position—especially if you’re priced right and prepared to show your home in its best light. Demand is still there, and motivated buyers are watching closely for opportunities.

Why Mortgage Rates Matter So Much

Even a 1% shift in mortgage interest rates can significantly impact your monthly payment—sometimes by hundreds of dollars a month. That’s why rate drops are such a big deal.

When mortgage rates fall:

Buyers can afford more home for the same payment.

Sellers benefit from a larger pool of qualified, enthusiastic buyers.

The whole market tends to move more confidently.

It’s not just about numbers—it’s about peace of mind and financial flexibility.

Market Forecast at a Glance

With sales expected to rise and job growth staying strong, 2025 is shaping up to be a much more active market—for both buyers and sellers.

Is Now the Right Time to Make a Move?

It’s a question I hear all the time: should I wait or go for it now?

Here’s the thing—there’s no perfect time to buy or sell. What matters most is whether you’re ready, personally and financially.

For buyers: Getting pre-approved and understanding your budget now gives you a head start. If rates dip later, refinancing is an option.

For sellers: Listing now, before the market becomes more crowded, may help you stand out and sell faster. Serious buyers are still out there—and many are done waiting.

Let’s Chat!  

Whether you're planning to buy or sell—or just want to talk through your options—I’m here to help you navigate this evolving market with confidence and clarity.

Contact me today to start the conversation. Let’s make a smart move together.