The housing market has been riding a wild wave these past few years, and here’s the truth no one wants to say out loud: 2025 could be your last shot to sell your home at peak value.
Yes, the shift is happening — and whether your state has growing inventory or is still tight, it all comes down to local trends, buyer psychology, and interest rate movement. I work in both Chicagoland and Northeast Florida, so I see two very different markets in real-time — and that’s what gives me a unique perspective to help you figure out what’s next for you.
Let’s break it down.
Inventory Is the Game-Changer
According to Altos Research, ten states already have more inventory than they did back in 2019 — and most of those are red-leaning states. Meanwhile, blue-leaning states like Illinois are still facing historic inventory lows. That’s a big deal.
Tight inventory = high prices.
Rising inventory = softening prices.
But don’t get it twisted — this isn’t about politics. It’s about understanding where your home stands in today’s shifting supply and demand cycle.
What's Happening in Illinois
Illinois is still a low-inventory state. Homes are scarce, and prices are still high — but not for long.
Even though a huge number of homeowners want to leave (51% according to a recent study), many are stuck. Why?
So even though demand is simmering, few are listing. That’s kept prices propped up, but when rates drop? That’s the tipping point.
The 5% Interest Rate Tipping Point
Experts agree: once mortgage rates fall into the 5s — even the high 5s — we’re going to see:
More homeowners finally ready to list
A flood of new inventory
Prices starting to soften
Translation: 2025 is your window.
If you're thinking about selling — especially in a state with low inventory like Illinois — the time to prepare is right now. Once that rate drops? You’ll have a lot more competition.
Florida’s Market: A Different Story
Down in Florida, it’s the opposite. We’re already seeing an inventory build-up. Why?
In areas like Sarasota and St. Augustine, homes are sitting longer and selling for less than peak pandemic prices. If you bought a second home during Covid, this might be the last year to break even or get close to your purchase price.
So, Will Your Home Value Tank?
Not overnight — but waiting too long could cost you tens of thousands.
If you're in a tight inventory state (like Illinois):
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Your prices may hold for now
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But once rates drop and homeowners finally list, prices will flatten or drop
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If you're planning to move out, sell before the crowd lists
If you're in a high inventory state (like Florida):
Here’s What You Need to Do Right Now
Talk to a top local agent — not someone who just reads market reports, but someone who knows the buyer behavior in your ZIP code
Stage and prep your home — first impressions online matter more than ever
Price strategically — not emotionally. Price to sell, not to "test" the market
2025 could be your best chance to cash out with maximum equity. Don’t miss it.
