Warren Buffett’s Berkshire Hathaway awaits big housing market turn | Official Website of Louis Velazquez, entrepreneur, finance guy and tech innovator

Homebuyers have faced a precarious housing market over the past few years. Rising home prices and sticky mortgage rates have made buyers hesitant, with many opting to delay homeownership until conditions improve.

Continued housing gridlock combined with economic uncertainty has dampened homebuyer sentiment further this year, with many experts predicting a tepid spring housing market.

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Though housing inventory is finally rising, homebuyer demand has remained sluggish, yielding tame spring home sales during what is typically a busy home buying season.

However, a few factors will be influential in shaping how the housing market performs during the second half of 2025.

Berkshire Hathaway Home Services expects an imminent market shift that may surprise homebuyers this fall.

Rising home prices and consistently high mortgage rates, and a general lack of affordability have diminished homebuyer demand. However, Berkshire Hathaway Home Services expects the second half of the year to see a market revival.

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Berkshire Hathaway Home Services anticipates a slower housing market will impact mortgage rates

Spring and summer are typically seen as the “hot” housing market seasons, as house showings increase during warmer months and families time their moves to be complete before the start of a new school year.

However, rising home prices, sticky mortgage rates, and general economic uncertainty have diminished this season’s home sales. The Wall Street Journal recently dubbed the Spring 2025 housing market a ‘dud,’ a sentiment echoed by Redfin, whose own predictions note the market is in limbo.

The National Association of Realtors found that existing home sales dropped 5.9% between February and March 2025, a time of year when sales typically rise. This signifies a year-over-year decline of 2.4%, indicating that the housing market is faltering despite forecasts that conditions would improve this year.

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The Berkshire Hathaway Home Services blog notes “while the spring/summer home buying season should still be robust, it’s likely that sales volume will be lower due to irrepressible home prices and mortgage interest rates.”

However, the blog foresees relief on the horizon. “If consumers continue to hunker down through the first half of the year, interest rates could fall slightly.”

Berkshire Hathaway Home Services expects Q3 2025 to be the best time to buy a home this year

2025 has gone against the grain in terms of mortgage rate predictions and home sales. Now, the peak buying season may shift from spring to late summer and early fall.

Although sellers have had the upper hand in the housing market over the past few years, houses are now staying on the market for longer, shifting negotiating power back to homebuyers.

Active home listings have rebounded, reaching over 959,000 in April, the highest level seen since December 2019. Berkshire Hathaway Home Services predicts this power shift will prompt sellers to cut prices.

“As home sellers invariably adjust to market realities and lower their prices, it could be that Q3 2025 will turn out to be the best time to buy a home this year,” the blog stated.

Sellers are already beginning to dash their expectations, with nearly a quarter of all Zillow listing cutting their prices in March. Though mortgage rate levels are still fairly unpredictable, homebuyers may be able to get a deal on home prices as houses stay on the market longer this fall.