Zillow Economist Says It’s a Good Time for Homebuyers

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.

Illustration: Min Heo for Bloomberg Businessweek

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 ...