Mortgage Rates, Home Prices, and What It Means for You in Central Virginia

The housing market continues to evolve in 2025, and whether you're a hopeful homebuyer, a strategic investor, or a homeowner considering a sale, it’s essential to understand what experts are forecasting. At Don Reid Properties, we stay on top of the latest trends so that you can make informed, confident decisions backed by data—and by a local team that knows the Central Virginia market inside and out.

Let’s explore two of the most important housing market predictions for 2025: mortgage rates and home price growth, and what they could mean for you if you're buying or selling in Richmond, Chesterfield, Midlothian, Henrico, or anywhere in between.

💸 Mortgage Rates Are Projected To Come Down Slightly in 2025

Over the past few years, rising interest rates caused uncertainty and affordability challenges for many potential buyers. However, experts now suggest a slight and steady decline in mortgage rates throughout 2025, a shift that could reenergize buyer activity across the Richmond metro area.

What the Experts Say:
Organizations like Fannie Mae, Freddie Mac, the National Association of Realtors (NAR), and the Mortgage Bankers Association (MBA) project that average 30-year fixed mortgage rates will gradually trend downward as inflation stabilizes and the Federal Reserve potentially eases monetary policy.

Mortgage Rates Are Projected To Come Down Slightly

Why This Matters:

  • For Buyers: Even a small dip in interest rates can significantly reduce your monthly mortgage payment.

  • For Sellers: As rates ease, more buyers will re-enter the market, increasing demand and potentially leading to faster sales and stronger offers.

📈 Home Price Growth Is Moderating—Not Falling

Let’s clear up a common misconception: home prices are not expected to drop in 2025, but rather, the rate of increase is expected to slow. This signals a healthy return to balance in the housing market.

What Experts Are Seeing:
CoreLogic, Zillow, and the Home Price Expectation Survey (HPES) all forecast continued price appreciation—just at a more gradual and sustainable pace.

Home Price Growth Will Continue To Moderate

What This Means for You:

  • Sellers: You can still sell for a great price, especially if your home is well-presented and marketed effectively.

  • Buyers: You’ll have more time to shop and negotiate, with less fear of prices skyrocketing overnight.

🏡 A More Balanced Market in 2025

The takeaway for Richmond-area buyers and sellers? A more stable, opportunity-rich housing market is on the horizon. Whether you’re planning to move now or next season, staying informed will help you make smart, strategic moves.

🛠️ How Don Reid Properties Can Help

We don’t just track trends—we interpret them for your benefit. Whether you’re buying, selling, investing, or just exploring your options, Don Reid Properties brings deep experience, local expertise, and a client-first mindset.

📣 Let’s Make a Plan for 2025

The next move is yours—and we’re ready when you are.

📅 Book a free consultation:
👉 Schedule here

📞 Call us: 804-929-4475
📧 Email: don@donreidproperties.com

Let’s talk about your goals and how we can help you make the most of what’s ahead.