Why It’s Actually a Good Time to Buy a House, According to a Zillow Economist

For more than a decade, the price of housing in the US rose like a helium balloon, reaching records each year. But in 2025 gravity is finally taking over. Listings provider Zillow Group Inc. forecasts its Home Value Index—a proprietary estimate of what typical American homes are worth—will drop 0.8% by the end of the year, the first annual decline since 2011.

For the lucky few in the position to buy, Zillow senior economist Orphe Divounguy advises they take advantage of this window of opportunity. Competition has been muted by high mortgage rates and broader economic jitters, including stubborn inflation and concerns about tariffs. Meanwhile inventory has grown, giving buyers more choice and leverage to negotiate; 27% of July listings included a price cut, the highest for any month since January 2018.