Next year could be a good one for U.S. home buyers, but it’ll heavily depend on the future of mortgage rates.

Though it will likely be a bumpy road to get there, with largely unpredictable mortgage rates, 2025 should bring more listing inventory, giving buyers more options and leverage in negotiations, and easing competition, according to a report from Zillow on Monday.

“Buying a home in 2024 was surprisingly competitive given how high the affordability hurdle became,” said Skylar Olsen, Zillow chief economist. “More inventory should shake loose in 2025, giving buyers a bit more room to breathe.”

Next year is expected to bring more sales activity, with Zillow predicting 4.3 million existing-home sales in 2025, up from a projected 4 million this year and 4.1 million in 2023.

Affordability will still be an issue for many U.S. buyers, with a forecasted 2.6% growth in home value.

Much of the housing market’s future hangs on mortgage rates, which can be expected to dip then rise back up again, much like they did earlier this fall.

“As we saw in 2024, mortgage rates rarely follow the expected path. What is more certain is that buyers should expect plenty of ups and downs throughout the year,” according to the report.

According to Zillow data, 13 major U.S. metro areas are considered buyer’s markets, with nearly all of them located in the Southeast. These markets include Miami, Atlanta and Tampa, Florida. As more inventory becomes available, more buyer’s markets are expected to pop up in the Southwest, too.