Zillow Home Value and Home Sales Forecast (June 2025)

Zillow’s latest forecast calls for a decline in home values and an increase in existing home sales in 2025. 

Home values are projected to fall by 1.4% this year, in line with last month’s forecast. This anticipated decline is largely attributed to a rise in housing inventory. Elevated mortgage rates and concerns about a weakening labor market are expected to continue holding some buyers back. Despite sellers returning to the housing market this year, sales are expected to lag, putting downward pressure on prices.

Existing home sales are now projected to reach 4.14 million in 2025, a modest uptick from last month’s estimate of 4.12 million. This would represent a 1.9% increase over 2024. While increased inventory is a drag on home values as it gives buyers more negotiating leverage, it is a tailwind for sales. 

Zillow projects single-family rents to rise by 2.8% in 2025, while multifamily rents are expected to increase by 1.6%. Both forecasts have been revised downward, reflecting the impact of recent new construction in balancing the market and pushing up vacancy rates. These factors, combined with broader signs of cooling across the housing market, suggest a more muted outlook for rent growth in the year ahead.