What Buyers & Sellers Really Think about the 2025 Housing Market

If you ask buyers, sellers, and agents what 2025 holds for the housing market, you’ll get one clear answer: 

It’s complicated. 

We have a pretty good sense by now of what experts are predicting about 2025. Now, let’s get into what consumers think. With home prices expected to rise, mortgage rates still in flux, and buyers and sellers split on key market dynamics, next year is shaping up to be anything but predictable. 

A new report from Clever Real Estate reveals insights into buyer and seller expectations, challenges, and the ongoing role of real estate agents in navigating the market. 

Having already reviewed expert predictions on the 2025 housing market, this article will focus more on consumer perspectives. While optimism remains high, a clear gap exists between what buyers can afford, what sellers expect, and how long each group thinks the process will take. 

Here’s what the report reveals about the trends shaping the 2025 housing market.

Will 2025 Be a Buyer’s Market or a Seller’s Market?

The market outlook for 2025 depends on who you ask. According to Clever’s report:

• 49% of sellers and 41% of buyers believe 2025 will be a seller’s market
• 30% of sellers and 35% of buyers expect a shift to a buyer’s market. 
• 20% of sellers and 24% of buyers expect neither a seller’s market nor a buyer’s market in the coming year. 

Here’s what buyers and sellers expect from home prices in 2025:: 

• Nearly half of sellers (47%) and buyers (45%) expect home prices in their local market to go up in 2025—roughly two to three times more than the 15% of sellers and 22% of buyers who expect a decline in home prices. 
• Additionally, 68% of buyers worry that rising home prices will make it necessary for them to delay their home purchase, while 48% expect to need financial assistance such as a down payment assistance program. 
• About 87% of home buyers and sellers expect buyer demand to be the same as or higher than it was in 2024. 

Top Challenges for Buyers in 2025

Given a combination of strong buyer demand and confident sellers, 98% of buyers expect to face challenges when buying a home, including: 

• 57% see the biggest challenge as “finding the right home”
• 49% cited “staying in my budget”
• 42% pointed to “mortgage rates”
• 34% see “finding a home in a good neighborhood” as their primary challenge
• 32% cited “moving” as the most daunting aspect
• 29% dread “competing with other buyers”
• 28% find “saving for a down payment” their most pressing concern
• 24% worry about “low housing inventory”
• 23% are uncertain about “managing closing costs”
• 23% are anxious about “negotiating with the seller”
• 22% are losing sleep over “qualifying for a mortgage”
• 20% report “coordinating a home sale and purchase” as their chief concern
• 14% cite “appraisal/inspection challenges” as their biggest worry
• 10% expect “securing home insurance” to be their biggest challenge

More than 8 in 10 prospective 2025 home buyers expect to finance their home purchase with a mortgage loan. Forty-two percent of them say mortgage rates could delay their plans, while 41% worried they might not qualify for a mortgage, regardless of the rates. 

Buyers may be particularly sensitive to rising rates because relatively few of them are putting down 20% as a down payment. Nearly two-thirds (61%) expect to put down less than 20%, while about one-third (32%) are planning to put down less than 10%. 

Sellers are more optimistic about mortgage rates, with only 24% worried about how higher rates could impact buyer demand. 

Top Challenges for Sellers

As one would expect, the top concerns are slightly different for sellers:

• Preparing the house for sale (46%)
• Managing repairs and renovations (36%)
• Pricing the home correctly (34%)
• Finding the right buyer (28%)
• Coordinating a home sale and purchase (28%)
• Negotiating offers (26%)
• Timing the market (26%)
• Finding the right real estate agent (26%)
• Rising mortgage interest rates affecting buyers (24%)
• Competing with other homes on the market (22%)
• Dealing with buyer contingencies (20%)
• Appraisal/inspection challenges (19%)
• Managing closing costs (14%)

Interestingly, low buyer demand is less of a concern for sellers, with only 12% citing it as a worry. Sellers remain confident in their ability to move properties quickly, with 72% expecting to close within 4 months or less.

Will Buyers & Sellers Use Agents in 2025?

Despite advancements in AI and tech tools, real estate agents remain central to the buying and selling process. The report highlights key trends:

• 80% of sellers plan to use an agent to sell their home
• 9% of sellers plan to sell-by-owner (FSBO)
• 3% of sellers plan to use a flat-fee MLS
• However, 41% of buyers would consider purchasing without an agent.

At the same time, 62% of buyers plan to negotiate agent commissions, a trend driven by evolving compensation models and ongoing conversations about commission transparency. 

Despite changes mandated by the terms of the NAR settlement (implemented August 17th, 2024), 69% of home buyers still expect sellers to pay the buyer’s agent commission, while only 29% of home sellers have that same expectation. 

In case the seller refuses, 68% of home buyers say they’ll budget for the cost of working with a buyer agent. But faced with the average buyer’s agent commission fee of $12,000, 63% of prospective 2025 buyers say the cost would make them less likely to buy a home. 

Technology is playing a bigger role in real estate, with 97% of buyers planning to use some sort of tech to assist them in their home search—most of them relying on online listings (88%). About one in seven (14%) are planning to use AI-powered tools. But for most buyers and sellers, agent expertise remains critical for navigating the complexities of today’s market. 

Read the full report for more information, including charts and methodology.