If you’ve been asking yourself, “Is now a good time to buy a home?”, you’re not alone. With interest rates, inflation, and housing inventory constantly shifting, many prospective buyers are wondering whether to act now or wait. Whether you're a first-time homebuyer or a seasoned investor, understanding the current market trends can help you make a smart, informed decision.

In this blog, we’ll break down the key real estate market trends in 2025 and explain what they mean for you as a buyer.

1. Mortgage Rates: Stabilizing but Still Elevated

Over the past few years, mortgage interest rates have seen historic fluctuations. In early 2025, rates are starting to stabilize, though they remain higher than the ultra-low rates we saw in 2020 and 2021.

What it means for buyers:

• While today’s rates aren’t as low as they once were, they’re still manageable compared to historical averages.

• Buyers who lock in now may have the opportunity to refinance later if rates drop.

• Acting sooner can help you avoid future rate hikes, especially if inflation pressures continue.

2. Housing Inventory: Slowly Rebounding

One of the biggest challenges for buyers in recent years has been the lack of housing inventory. The good news? Supply is slowly starting to increase in many markets as new construction picks up and more homeowners list their properties.

What it means for buyers:

• More inventory means more choices and less competition, especially compared to the frenzied bidding wars of previous years.

• As supply and demand begin to balance, price growth may slow—making homes slightly more affordable in some areas.

3. Home Prices: Cooling Down (in Some Areas)

While home prices soared over the last few years, many markets are now experiencing a plateau or modest decline. Others are still seeing steady appreciation, particularly in areas with strong job growth or limited housing supply.

What it means for buyers:

• In some markets, you may have the chance to negotiate or find better value.

• Watch for localized trends—home prices can vary significantly by region and even neighborhood.

• It’s important to focus on long-term value, not just short-term market timing.

4. Buyer Sentiment: Cautiously Optimistic

Many buyers are feeling cautious but still hopeful about buying in 2025. With the right strategy and support, it’s still possible to find a great home and make a solid investment.

What it means for buyers:

• You’re not alone in feeling uncertain—but those who are well-prepared are still making successful purchases.

• Having a trusted real estate agent and pre-approval can give you an edge.

5. More Opportunities for First-Time Buyers

With demand softening and competition decreasing, first-time homebuyers may find more entry-level inventory, especially in suburban and smaller urban areas. Many states also continue to offer down payment assistance and first-time buyer programs in 2025.

So, Is Now a Good Time to Buy a Home?

The answer depends on your personal situation, but here are a few signs that now may be a great time to buy:

You’re financially prepared (stable income, good credit, saved for a down payment)
You’ve been pre-approved for a mortgage
You’re planning to stay in the home for at least 5 years
You’ve found a location and price point that fits your budget and goals

If you check those boxes, waiting might cost you more in the long run—especially if interest rates or home prices rise again.

The real estate market in 2025 is more balanced than it’s been in years. While we may not be in a buyer’s market yet, conditions are shifting, and the window of opportunity is opening for many. By staying informed and working with a knowledgeable real estate professional, you can navigate today’s trends and make the right move at the right time.

Matt Witte strives to be the best realtor in Andover MA.

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