Can you believe we’re already halfway through 2025? It feels like just yesterday we were setting our goals for the new year, and here we are, heading into the second half—full of fresh opportunities for anyone thinking about buying or selling a home on the Space Coast.

Lately, one of the biggest questions I’m hearing from clients is:
👉 “What’s next for the housing market?”

While no one has a crystal ball, housing economists from places like Fannie Mae, NAR, Zillow, MBA, and others have shared their latest forecasts. So, I’ve gathered some key insights for you—plus my take on what they could mean right here in Brevard County.

🌟 Home Price Forecasts: Expect Modest Growth (With a Few Exceptions)

Most experts agree: home prices are expected to rise, but at a slower pace than we saw during the wild market of a few years ago. And in some parts of the country—including areas of Florida—we could see slight price softening as the market continues to rebalance.

👉 Here’s what major forecasters are saying about home prices in 2025:

• Cotality: +4.3% (April 2025–April 2026)

• Fannie Mae: +4.1%

• Home Price Expectations Survey: +3.3%

• NAR: +3% in 2025, +4% in 2026

• MBA: +1.3% in 2025, less than 1% in 2026

• Zillow: -1.4% (a slight improvement from their earlier prediction)

👉 What’s happening locally?
In Brevard County, we’re seeing that well-priced homes—especially in sought-after neighborhoods or near the beach—are still moving. But in some pockets, particularly at the higher price points, sellers are needing to adjust expectations as buyers become more value-conscious.

🏡 Existing Home Sales: A Gradual Recovery

After a quieter 2023 and early 2024, home sales activity is slowly picking up across the country. Forecasts suggest we’ll see a gradual rise through the rest of this year and into 2026:

• NAR: +6% in 2025 (with an 11% gain expected in 2026)

• Fannie Mae: +4.4% (4.24 million sales)

• MBA: 4.3 million sales

• Zillow: +1.4% (4.12 million sales)

Here in Brevard, we’re starting to feel that shift. As inventory improves and buyers adjust to current mortgage rates, more people are making moves—whether it’s upsizing, downsizing, or relocating within the Space Coast.

💰 Mortgage Rates: Slow and Steady Declines (But Still Above 6%)

Many buyers I talk with are wondering if mortgage rates will drop below 5% anytime soon. The reality? It’s not likely in the near future. But the good news is, most forecasts predict slow and steady improvement:

• MBA: 6.6% average by Q4 2025; 6.3% by end of 2026

• NAR: 6.4% in late 2025; 6.1% in 2026

• Fannie Mae: 6.1% by year-end; 5.8% in 2026

As Lawrence Yun from NAR put it, lower mortgage rates are the “magic bullet” that could really unlock more buyer activity. And when that happens, we could see even more energy in the Brevard market.

💡 What This Means for You

If you’re planning to buy, sell, or even just stay put in your home, here’s what to keep in mind:

✅ The market is recovering—just at a gentler pace.
✅ Prices may rise modestly, though some local areas could see stabilization or small dips.
✅ Mortgage rates will likely stay in the 6% range for now, so realistic budgeting is key.

And remember—national trends are helpful, but real estate is always local. What’s happening in Brevard County could look very different from what you’re seeing in national headlines or even in other parts of Florida. Whether you’re near Cocoa Beach, Viera, Melbourne, or Palm Bay, market dynamics can vary block by block.

Let’s Chat About Your Goals

Thinking about making a move? Or just curious how these trends could impact your plans? I’m always happy to provide personalized insights—no pressure, just helpful information to guide your next steps.

👉 Reach out anytime! Let’s talk about what’s happening in your neighborhood and how we can make the most of this market together.

Source: BAM