🏡 Is 2025 a Good Time to Buy a House? What Today’s Market Really Means for Buyers

📉📈 Mortgage Rates Are Down, Inventory Is Up — Is Now the Right Time to Buy a Home?

Is This a Good Time to Buy a House in 2025?

As 2025 comes to a close, the U.S. housing market looks very different than it did just a year ago. Mortgage rates are lower than last year, home prices are softening in certain markets, sellers are cutting prices, and listings are sitting longer.

So the question many buyers are asking is simple—but the answer is not:

Is this a good time to buy a house?

The short answer: for many buyers, conditions are improving—but the decision must be personal, not emotional or headline-driven.

Let’s break down what’s happening in today’s housing market and how to decide whether buying makes sense for you.

Understanding the 2025 Housing Market

According to the Realtor.com November 2025 Housing Market Trends Report, the market has become more balanced compared to 2024. That shift is meaningful for buyers who felt locked out during the ultra-competitive years.

Active Listings Are Up

• Active listings are 12.6% higher year-over-year

• However, listings declined 2.5% month-over-month as some sellers pulled homes off the market

• Translation: More choices than last year, but sellers are still price-sensitive

This inventory increase gives buyers leverage—especially when listings linger.

More Price Reductions = More Negotiation Power

In November, 18% of all listings had price reductions, with the South leading the way.

This is critical for buyers:

• Price cuts signal motivated sellers

• Longer days on market often lead to seller concessions, rate buydowns, or closing cost credits

Negotiation power has quietly shifted back toward buyers who are prepared.

Homes Are Sitting Longer

Median time on market:

• 64 days in November

• Up 3 days year-over-year

Longer market times mean:

• Less competition

• Fewer bidding wars

• Better inspection and financing leverage

For buyers with strong preapprovals, this is a strategic advantage.

Where Mortgage Rates Stand Today

According to Freddie Mac, mortgage rates peaked at 7.04% earlier this cycle and are now hovering in the low-to-mid 6% range, with the average 30-year fixed rate near 6.22%.

While that’s higher than 2020–2021, rates remain well below recent highs.

The Federal Reserve cut the federal funds rate again in December—but mortgage rates are driven more closely by the 10-Year Treasury, not Fed headlines.

The takeaway:

• Mortgage rates may improve modestly

• Waiting for “perfect” rates is risky

• Refinancing later is always an option—missing appreciation is not

Why Shopping Lenders Matters More Than Ever

Many buyers unknowingly hurt themselves here:

• 56% of borrowers only get one preapproval

• 45% of first-time buyers who shopped multiple lenders got a better rate, according to Zillow

As a mortgage broker, this is where real value shows up:

• Access to multiple lenders

• Rate competition

• Seller-paid buydowns and builder incentives

• Loan structures banks don’t always offer

New Construction: A Mixed Signal

Builders remain cautious due to labor, materials, and tariff concerns.

The National Association of Home Builders reports:

• 41% of builders cut prices in November

• Slight growth expected in 2026 after a slower 2025

Builders are competing harder—which often means:

• Below-market rates

• Closing cost credits

• Flexible terms for qualified buyers

Is It a Good Time to Buy for You?

Market conditions matter—but personal readiness matters more.

Ask yourself:

Where Do You Want to Be in 5 Years?

Buying is a medium- to long-term decision. Job stability, family plans, and lifestyle should align with ownership.

How Stable Is Your Income?

Lenders favor consistency. If your income is predictable, today’s market rewards preparedness.

What Does Your Credit Look Like?

• Conventional loans: 620+

• FHA: 580+ with 3.5% down

• VA: No official minimum (lender overlays apply)

Higher credit scores = better pricing and leverage.

What Is Your Debt-to-Income Ratio?

Fannie Mae prefers:

• 36% DTI, with exceptions up to 50%

Lower DTI improves approval strength and negotiating power.

Do You Have Reserves?

Emergency savings and down payment funds reduce risk—and improve underwriting outcomes.

Final Thought: The Best Time Is When the Numbers Work

This market rewards buyers who:

• Are preapproved, not pre-qualified

• Shop lenders aggressively

• Negotiate smartly

• Plan to refinance, not time rates

Buying a home is not about predicting the market—it’s about controlling risk and positioning for long-term stability.

If you’re unsure where you stand, that’s exactly where professional guidance matters most.

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© 2023-2024 Bill Rapp, Medallion Funds LLC, Director of Capital Advisory