Will Home Prices Drop In 2025 California. Mortgage rates will continue to average above 6% next year, and home prices will keep rising, the realtor.com® economic research team predicts in its new 2025 housing forecast. Following a housing and economic projection published by the california association of realtors®, supply limitations and rising home prices will drive california home sales to decline.

Mortgage rates will continue to average above 6% next year, and home prices will keep rising, the realtor.com® economic research team predicts in its new 2025 housing forecast. A persistent housing shortage and a competitive housing market will continue to put upward.