Dave Ramsey’s 2025 Housing Market Predictions
The housing market has been anything but predictable. Prices shot up, mortgage rates followed, and buyers were left wondering if they’d ever catch a break.
If you’re hoping for a crash to reset everything, don’t hold your breath. According to Ramsey Solutions’ 2025 Housing Market Predictions, that’s not happening anytime soon.
Market predictions are useful, but they don’t decide when you’re ready to buy. You do.
Now let’s get into Ramsey Solutions’ Housing Predictions.
Table of Contents
Will Interest Rates Go Down in 2025?
According to Ramsey, if you’re waiting for mortgage rates to return to 3%, stop. That ship has sailed. According to the Mortgage Bankers Association, the average 30-year fixed-rate mortgage was 7.79% at its peak in October 2023 but cooled to 6.89% at the start of 2025.
The expectation is that rates will stabilize around 6.5%, but don’t expect them to dip much lower. Inflation and Federal Reserve policies will play a role, but the era of dirt-cheap mortgages is over.
If you’re financially ready to buy, waiting for a better rate could mean missing out on a good home. A lower rate might save you a little on monthly payments, but if home prices keep climbing, hesitation could cost you more in the long run.
Is Now a Good Time to Buy a House?
Timing the market is a fool’s game. The real question isn’t if now is a good time to buy, it’s if you’re in a good position to buy.
Dave Ramsey’s advice is clear: if you’re debt-free, have an emergency fund covering 3 to 6 months of expenses, and can afford a 15-year fixed-rate mortgage with payments at or below 25% of your take-home pay, then it’s a good time for you.
A solid down payment of 20% is ideal to avoid private mortgage insurance (PMI), but if you’re a first-time buyer, 5–10% is workable. Ramsey also warns against FHA and VA loans due to the extra fees that come with them.
The market will always have ups and downs, but financial security is what makes buying a home a smart move, not interest rates or housing trends.
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How Will the Housing Market Change Under a New President?
According to the report from Ramsey, presidents don’t set mortgage rates or housing prices, supply and demand do. But policy changes can nudge the market in different directions. With Donald Trump back in office, expect adjustments in zoning laws, infrastructure spending, and federal land use.
Loosening zoning restrictions could increase housing supply, which might help slow down price growth. More infrastructure projects could raise home values in certain areas. If federal land is opened for development, we could see an uptick in available housing.
None of these changes will cause an overnight shift, but over time, they could impact affordability and availability. That said, politics shouldn’t drive your home-buying decision. Your financial situation should.
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Will the Housing Market Crash in 2025?
If you’re hoping for a crash, Ramsey says it’s not happening. The Federal Home Loan Mortgage Corporation expects home prices to rise in 2025, not fall. The housing market isn’t built like the 2008 disaster.
Crashes happen when there’s an oversupply of homes and no one to buy them, that’s not the case in 2025. If anything, buyer demand is holding strong, and that’s keeping prices propped up.
The only way we’d see a serious downturn is if there was a massive wave of foreclosures, which isn’t in the cards. If affordability is your concern, focus on increasing your income and saving aggressively, waiting for a crash that won’t come is a losing bet.
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What’s the Average Home Price in 2025?
If you’re wondering what homes are selling for, the numbers are clear. The average U.S. home price at the end of 2024 was $510,300, according to Federal Reserve Economic Data. But the median home price, which gives a more accurate picture, sits at $419,200.
That’s because ultra-expensive homes skew the average higher, making it seem like prices are more extreme than they really are. Home values are still rising in most areas, but the insane price jumps of 2020–2022 have calmed down.
Prices aren’t crashing, and they aren’t skyrocketing either, they’re stabilizing. If you’re in the market, expect to pay close to asking price, especially in cities where inventory is tight.
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Will Housing Inventory Improve?
Housing inventory has been a mess for years, and 2025 isn’t going to magically fix that. More homes are hitting the market, January 2025 marked the 15th straight month of inventory growth, but that doesn’t mean buyers suddenly have endless options.
Realtor.com reports that the number of available homes is 24.6% higher than a year ago, which is a good sign. The bad news? Inventory is still nowhere near pre-2020 levels, which means prices aren’t dropping anytime soon.
The supply of homes remains tight, especially in high-demand cities where new construction isn’t keeping up. A healthier market is forming, but don’t expect massive changes overnight.
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Will Buyer Demand Stay Strong?
Buyers haven’t disappeared, even with mortgage rates sitting above 6.5%. Redfin’s latest data shows that in January 2025, 22.4% of homes sold for more than the asking price, proving that plenty of people are still fighting over houses.
Demand has followed a predictable pattern over the past couple of years, strong in summer, slower in winter, but the overall trend remains steady. If rates dip below 6.5%, expect even more competition as buyers jump in before rates climb again.
Those waiting for a major slowdown in demand will likely be disappointed. The reality is that people still need places to live, and with inventory still below normal levels, demand isn’t going anywhere.
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Is 2025 a Buyer’s or Seller’s Market?
Ramsey says the market is shifting, but sellers still have the upper hand in most areas. Supply hasn’t caught up to demand, which means well-priced homes continue to sell quickly. That said, buyers have a little more breathing room than they did during the peak insanity of 2021–2022.
The days of dozens of offers within hours are fading, but a solid home in a desirable location will still attract interest. Sellers who overprice their homes expecting a bidding war may be in for a rude awakening, though.
The frenzy has cooled, and buyers aren’t as willing to stretch their budgets for a house that isn’t worth it. Those pricing their homes realistically will still walk away with a strong sale.
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Will There Be a Lot of Foreclosures in 2025?
Dave Ramsey Does not think a wave of foreclosures is coming. ATTOM Data reported that foreclosures dropped 10% in 2024, and that trend is expected to continue this year.
Homeowners are in a much stronger position than they were before the 2008 crash, with stricter lending practices and more home equity. While some distressed properties will hit the market, there won’t be enough to impact prices in any major way.
Buyers looking for foreclosure deals will have a tough time since inventory remains low. Anyone hoping for an economic collapse to flood the market with cheap homes will need to keep waiting.
How to Buy a Home With Confidence in 2025
Buying a house isn’t just about timing, it’s about being financially prepared. Ramsey’s advice remains the same: get out of debt, build an emergency fund, and make sure your mortgage payment stays below 25% of your take-home pay.
The best loan option is a 15-year fixed mortgage, not a risky adjustable-rate or government-backed loan filled with extra fees. Working with an agent who understands the local market can make all the difference, especially since prices are still high in many areas.
There’s no need to rush into a bad deal, but there’s also no point in waiting for perfect conditions that may never come. Financial stability matters more than market fluctuations.
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How to Sell a Home for the Best Price in 2025
Ramsey believes that sellers still have the advantage, but that doesn’t mean they can slap any price on a house and expect buyers to line up. Pricing a home correctly is more important than ever, especially as buyers become more selective.
Overpricing can lead to a stale listing, forcing price cuts that make the property less appealing. Making small upgrades like fresh paint, minor repairs, and professional photos can help attract serious buyers.
Homes that are move-in ready tend to sell faster, while those needing major work sit on the market longer. Sellers willing to be realistic with pricing and presentation will still walk away with a strong sale.
The Bottom Line on Housing
According to Ramsey, the market isn’t crashing, and mortgage rates aren’t dropping to rock-bottom levels. Home prices are holding steady, inventory is improving but still tight, and buyer demand remains strong.
Sellers have the advantage, but buyers who are financially ready can still find solid opportunities. Timing the market won’t guarantee a better deal, what matters is being prepared.
Make a move when your finances are solid, not based on hope that the market will suddenly change in your favor.
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