2025 U.S. Housing Market Outlook: National Trends, Vacation Properties, and Western North Carolina Spotlight.
The 2025 residential real estate market across the United States is entering a phase of balanced stabilization following the extraordinary seller’s market conditions of recent years. Nationally, experts from the National Association of Realtors, Zillow, and other industry leaders forecast a modest rebound in sales activity, with existing home sales expected to rise approximately 9% and new home sales by about 11% compared to previous years.
Home prices nationally are projected to appreciate slowly, typically between 1–4%. Zillow, for instance, anticipates nearly flat growth at 0.6%, while Redfin and the National Association of Realtors project increases closer to 4% and 2%, respectively. High mortgage rates have moderated growth, preventing dramatic price hikes and offering buyers some relief from past affordability pressures.
Inventory is steadily improving nationwide, with supply reaching around 3.7 months—a notable rise from the extreme shortages of previous years. Consequently, average time on the market has increased, with homes typically listed for around two months before selling, giving buyers more time for thorough property evaluation and negotiations. This shift suggests a healthier, more sustainable marketplace rather than one heavily skewed toward sellers or buyers.
Second Homes and Vacation Properties
The market for second homes and vacation properties is also adjusting toward balance. Vacation destinations, including popular mountain and lake communities, have seen improved inventory levels, offering prospective buyers increased selection and reduced competition compared to prior years. Rental income potential remains attractive, especially in established tourist destinations, driving continued demand for well-priced, strategically located properties.
Spotlight on Cherokee County, Western North Carolina
Cherokee County, situated in the picturesque westernmost region of North Carolina (encompassing Murphy NC, Andrews, Brasstown NC, and more), exemplifies many broader trends while showcasing unique local dynamics. Based on detailed MLS data from Navica, comparing the first quarter of 2025 with previous years (2020–2024), the county’s market reflects significant yet stable changes:
New Listings: Increased modestly, providing a healthier selection of homes and slightly easing buyer pressure.
Pending and Closed Sales: Saw notable declines from historic highs in 2021 and 2022 (down 20–35%) but remained relatively stable compared to recent quarters, indicating a moderation rather than a significant market downturn.
Median and Average Sales Prices: Continued rising significantly. The median home price reached $307,400 in Q1 2025—up approximately 77% compared to five years prior and consistently increasing 5–6% annually over recent years. This underscores strong and sustained demand in Cherokee County, reflecting ongoing appeal, especially for retirees, vacation homeowners, and remote workers attracted to mountain lifestyles.
Closed Sales Volume: After peaking dramatically in 2022, Cherokee County’s sales volume normalized, indicating a stable and sustainable level of market activity. The volume decreased only marginally year-over-year from 2024, signaling a robust yet balanced market.
What to Expect Locally and Nationally
In Cherokee County, as in the broader Western North Carolina region, the real estate market is moving toward equilibrium. Properties in good locations, particularly those suitable for vacation rentals or retirement living, continue to attract strong interest, albeit without the intensity of bidding wars seen in prior years. Buyers have gained negotiating power, enabling more favorable purchase terms, though sellers still enjoy considerable leverage due to sustained price appreciation.
The area’s inherent desirability, driven by natural beauty, outdoor recreational opportunities, cultural vibrancy, and quality of life factors, supports ongoing demand. Inventory improvements and slower sales cycles have restored healthier market dynamics, providing more balanced opportunities for both buyers and sellers.
The national residential market and specific locales such as Cherokee County are demonstrating a shift from extreme seller dominance toward a balanced environment in 2025. Prices are stabilizing at healthy, sustainable levels, and sales activity is increasing moderately. While the market is not yet fully buyer-oriented, increased inventory and longer time on the market benefit potential homeowners, offering a more thoughtful and less rushed buying experience.
Overall, 2025 promises to be a solid year for real estate transactions, particularly in regions like Western North Carolina, where lifestyle appeal and investment potential remain strong. Both buyers and sellers can expect clearer expectations and more balanced negotiations, ultimately creating a more stable and sustainable real estate landscape.
Looking to navigate the 2025 U.S. housing market or buy/sell in the Carolinas? Let us help at murphy nc real estate.
John Poltrock, Certified Residential Specialist – www.MyMurphy.com – JohnPoltrock@gmail.com – Call us Toll Free at 1-866-687-7496 for Murphy’s #1 Real Estate Team!