The Housing Market in 2025: What Growing Families Need to Know

The housing market is slowly starting to improve, but challenges remain for families looking to upsize. Home sales and new construction have been sluggish in early 2025, with rising costs and high mortgage rates making it difficult for buyers and sellers alike.

Sales of existing homes dropped 4.9% from December to January, reaching 15-year lows. New home construction is also slow, with permits down 1.7% compared to last year. Many listings are staying on the market longer as buyers wait for mortgage rates to decrease.

Despite these uncertainties, experts suggest families looking to upsize stay flexible. Inventory is increasing, and builders are offering incentives to attract buyers. Mortgage rates remain a key factor—if they drop, it could be a good time to buy. Buyers now have more negotiating power and more homes to choose from than last year.

Real estate agents report that while demand is picking up, buyers are being more selective due to high costs of renovations and repairs. Many are holding out for the perfect home, making the market slower than expected.

For families planning to upsize, patience and preparation are key. Watching mortgage trends, getting preapproved for loans, and exploring builder incentives can help navigate the market successfully.