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According to bankrate.com, Borrowing costs will fall somewhat, as easing labor and inflation data prompt the Federal Reserve to turn dovish. That's after the 30-year mortgage rate soared this year, briefly breaching 8% in October.

But while some see a drop to as low as 5%, Realtor.com sees an average of 6.8%, compared to 7.22% in Freddie Mac's latest survey.

On home prices, Realtor.com says "It will be a bit of a break after what have been pretty relentless home price increases,". "It's going to be a big leap forward for buyers' mental health. Some of the pressure and sense of urgency will start to let up.

Lackluster supply

But the market's supply scarcity will only get worse, Realtor.com said. The limited decline in mortgage rates is partially to blame, as next year will still see rates exceed around 85% of current mortgages.