If you’ve been following the real estate market in 2025, you’ve probably already noticed a few shifts. But the real question is: what happens next? From Tacoma to Bonney Lake, let’s look at the expert insights on home prices and mortgage rates—and what it all means if you're planning to buy or sell in areas like Puyallup, SeaTac, or Auburn.
Will Home Prices Drop?
Many buyers are holding out hope that home prices will fall—but experts say that’s unlikely on a national scale. According to the National Association of Home Builders (NAHB), home price growth has slowed due to rising inventory and reduced buyer demand. But slowed growth doesn’t mean prices are crashing.
In fact, the average of eight major housing forecasts shows national home prices are still projected to rise by 1.5% to 2% in 2025. So, while the pace may have cooled off from recent years, we’re still in positive territory.
Even in cities like Sumner, Des Moines, and Normandy Park, some small local dips (averaging around -3.5%) are possible. But those are minimal compared to the nearly 55% increase in home values over the last 5 years nationwide, as reported by the Federal Housing Finance Agency.
Bottom line? Home values are holding strong—just moving more gradually. If you’re thinking of selling in Burien or buying in Lake Tapps, it’s important to understand your local trends, which can vary even within the same region.
Will Mortgage Rates Improve?
Many buyers are also hoping for mortgage rates to fall significantly before making a move. But waiting for a major shift may not be a winning strategy. Current projections from multiple sources, including Yahoo Finance, suggest that rates will likely stay in the mid-6% range through the end of the year.
That means we’re not expecting big swings—and mortgage rates may stay relatively steady in places like SeaTac or Puyallup. In fact, experts agree that rather than waiting on the sidelines for rates to drop, it’s often better to buy when it fits your needs and budget.
Because real estate isn’t just about rates or price—it’s about timing and lifestyle, too.
What This Means for You
Whether you're buying, selling, or both in Pierce or South King County, this year’s market isn’t about dramatic highs or lows. It’s about stability and balance. Home prices are still appreciating (just more slowly), and mortgage rates are expected to hover in the same range.
The key takeaway? Don’t let the headlines scare you into inaction. This is a time to move forward strategically.
If you want expert help navigating your next step in the market, get in touch with a local real estate professional who understands how to win in today’s conditions.
