Articles October 3, 2025

Home Prices Rose in the Worst Market, What Happens Next?

Last year saw the slowest housing market in decades, yet home prices still climbed. Here’s what buyers and sellers should expect when demand returns.

Last year was one of the toughest real estate markets in modern history. Home sales dropped to levels not seen in decades. High mortgage rates kept many families on the sidelines, and affordability challenges slowed activity in nearly every market across the country.

And yet, despite all of that… prices still went up.

Why Prices Didn’t Fall

Even with record-low buyer activity, the simple truth is that there weren’t enough homes for sale. Low inventory kept competition alive. Buyers who needed to move — for jobs, family, or personal reasons — had limited options, and that steady pressure prevented values from dropping.

In other words, the weakest market in decades still couldn’t bring prices down.

What Happens When Demand Returns

Now imagine what happens when conditions shift. As soon as mortgage rates ease and more buyers step back into the market, demand will rise quickly. If prices held firm during the slowest year in decades, the return of buyers will almost certainly create stronger competition, faster sales, and upward pressure on prices.

This is the moment where timing matters.

What Buyers Should Know

If you’ve been waiting for the “right time,” keep in mind that you won’t be the only one. When demand returns, so will multiple-offer situations, bidding wars, and fewer days on market. The best way to stay ahead is to be prepared now — get pre-approved, know your numbers, and have a clear plan in place before the market heats up.

What Sellers Should Know

For homeowners, the past year proved that your property can hold or even gain value even in a slow market. With more buyers expected to re-enter, sellers can look forward to stronger offers and the possibility of quicker sales. The key is making sure your home is ready when that wave of demand arrives.

The Bottom Line

The “worst market in history” couldn’t bring prices down — which means the return of demand is set to reshape real estate in a big way. Whether you’re planning to buy or sell, being proactive now ensures you’re ready to make the most of what’s coming next.