Will Home Prices Increase In 2025. The 2024 homebuying season was a tough one thanks to high mortgage rates and rising home prices. According to the data, the “all panelists (mean)” scenario suggests a 5.6% cumulative increase in home prices by the end of 2024.

Assume a typical california home is worth $1 million and insuring it costs $5,000 annually. With more buyers ready to enter the market, home prices are likely to experience further appreciation, albeit at a moderate pace.