Housing Market Forecasts for the Rest of 2025
How national trends and local insights shape what’s ahead on Martha’s Vineyard
If you’ve been watching the market, you’ve likely noticed a few changes already this year. But what’s next? From home prices to mortgage rates, here’s what the latest expert forecasts suggest for the rest of 2025—and what these shifts could mean for you.
Will Home Prices Fall?
Many buyers are still hoping prices will come down. And while there are headlines suggesting slight dips in some markets, the broader picture points toward continued—albeit slower—price growth.
According to the average of eight leading national forecasts, home prices are expected to rise by 1.5–2% in 2025. While that’s a slower pace than we’ve seen in recent years, it’s still growth—not a crash.
And locally, on Martha’s Vineyard, we’ve seen the same trend: prices have not gone down—even after a slower-than-usual first half of the year. Inventory levels rose this spring, and many buyers took a watch-and-wait approach. But those properties that were priced well from the start or recently adjusted to meet buyer expectations have seen increased interest and, in many cases, are now under contract.
In short, the homes that are moving are the ones aligned with today’s market realities. Buyers are cautious, but they’re not expecting bargain-basement prices. Reasonable sellers—those who understand that buyers are taking their time and doing their homework—are seeing results.
Will Mortgage Rates Come Down?
One of the biggest questions buyers ask is: Should I wait for rates to drop?
The truth is, most experts believe mortgage rates will remain steady in the 6% range through the end of 2025. While we may see slight fluctuations depending on inflation and economic data, we’re unlikely to return to the historically low rates of the past few years anytime soon.
If you're on the fence about buying or selling, this is an important reality check. Waiting for a big rate drop might mean missing out on the right property—or on buyers who are ready now. And with inventory continuing to shift, the most strategic move is one that’s based on your timing, not interest rate speculation.
What This Means for Buyers and Sellers on Martha’s Vineyard
For those buying or selling property on the Vineyard, the second half of 2025 is already showing more momentum than the first.
After a quieter spring, July brought a noticeable uptick in activity. Many homes that had been sitting on the market—some for weeks or months—went under contract. These were the properties that had been well-priced from the start or had recently adjusted in response to the market.
We’ve seen:
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Serious buyers making quick trips to the island, often for just a day or two, with the sole purpose of seeing a handful of carefully selected homes
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A sharp decline in interest for overpriced listings, with buyers focusing only on those that reflect real value
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A steady stream of contracts on homes that check all the boxes: great location, strong condition, and a price aligned with buyer expectations
The takeaway? Buyers aren’t looking to make lowball offers—but they are watching carefully. And when they find the right fit, they’re ready to move quickly. For sellers, being realistic from day one makes all the difference.
Bottom Line
Whether you're buying, selling, or both, the second half of 2025 offers opportunity—but only if you go in with a clear strategy.
Nationally, home prices are expected to rise slowly, and mortgage rates are likely to remain steady. Locally, Martha’s Vineyard is experiencing a more active summer market—especially for properties that meet buyer expectations in both price and presentation.
At The O’Hanlon Group, we’ve helped clients navigate both sides of this evolving market by focusing on preparation, pricing, and timing. If you’re considering a move—now or in the coming months—let’s connect to create a plan that works for you.
