Berkshire Hathaway Has A Major Housing Market Prediction

Thanks to a variety of factors, the 2025 housing market has been different from 2024's market, largely favoring buyers. But what does the future hold for housing? According to a fall 2025 report from Berkshire Hathaway HomeServices, the market will to continue to evolve in late 2025 and going into 2026 — with most changes still benefitting house buyers. In fact, Berkshire Hathaway HomeServices believes late 2025 may represent a major turning point in the market in favor of buyers. 

Some of the key reasons that Berkshire Hathaway believes the market is shifting in favor of buyers include continued drops in mortgage rates from Federal Reserve rate cuts, home prices for new listings remaining roughly stagnant (at the same time sellers are showing a willingness to drop prices), and the supply of houses on the market continuing to climb. In addition to regularly releasing real estate market reports that give buyers and sellers insights that cover several market segments, Berkshire Hathaway also has a significant affiliation with Warren Buffett, the financial celebrity that financial experts actually respect, giving these predictions some added legitimacy. All said, it could be worth factoring these predictions into your future homebuying plans.

One of the key reasons the housing market swings in favor of buyers occurs when there are more homes for sale than people interested in purchasing them. Active buyers tend to have more desirable choices available as supplies increase, while the competition for the most desirable homes lessens. Realtor.com's October 2025 Housing Market Trends Report showed that the number of active listings in the American real estate market climbed for the 24th consecutive month, which was cited as a specific reason for the market reaching a turning point in favor of buyers. The total number of listings in October 2025 was 15.3% higher than in October 2024 according to the report, however listings in inventory still remain 13.2% below 2017–2019 numbers.

However, Berkshire Hathaway also notes that the supply of houses varies significantly in different areas of the United States, which can affect the ability of certain buyers to take advantage of growing inventory. For markets that have a four-month supply (or less) of homes available, sellers remain in the driver's seat. If a particular area has a six-month supply (or greater) of homes in inventory, though, the advantage shifts to home buyers, as sellers are forced to give more concessions to attract the attention of buyers.

In addition to home inventory changes favoring buyers, financial changes are also helping buyers, which bolsters Berkshire Hathaways' prediction of a turning point in the market. The Federal Reserve cut the federal funds rate by 25 basis points in September 2025, and again in October 2025. Goldman Sachs Research anticipates further cuts in December 2025 and during 2026. These rate cuts tend to lead to reductions in 30-year fixed mortgage interest rates, which increases the buying power of those seeking to purchase a home. The average mortgage rate in the United States in November 2025 was 6.26%, lower than the average of 6.9% in 2024 and 7.0% in 2023, according to Bankrate.

Another advantage for buyers is that housing prices have remained roughly stagnant from October 2024 to 2025, according to the Realtor.com. While the national median list price for a house is 0.4% higher year-over-year, the price per square foot dropped 0.5% year-over-year. With this in mind, Berkshire Hathaway recommends that would-be buyers watch home prices and mortgage rates closely, and be prepared to act as factors change. If you haven't started preparing to buy a home yet, you should consider certain behaviors like paying down debt to improve your credit, saving more to put toward a down payment, and even researching different mortgage types, like adjustable-rate mortgages (ARM).