Is Now a Good Time to Buy a House in 2025?
buying a home
buying a home
If you’ve been asking yourself, “Is now a good time to buy a house in 2025?” — you’re not alone. It’s the #1 real estate question buyers are searching for this year. With rising interest rates, limited inventory, and fluctuating home prices, it’s no surprise that many are feeling uncertain.
The short answer? It depends on your personal financial situation, local market conditions, and long-term goals. Let’s break it down.
In early 2025, mortgage rates are still higher than the historic lows of the 2020-2022 period, but they’ve begun to stabilize. While rates may not drop significantly in the near term, they’ve shown predictable trends, giving buyers more confidence to plan their moves.
📝 Tip: Locking in a rate now could protect you from future increases, and you can always refinance later if rates go down.
Prices in many areas — especially in high-demand regions like the East Bay, Tri-Valley, and surrounding parts of Northern California — have remained resilient. While some markets are seeing slower growth, widespread price drops haven’t materialized.
If you’re waiting for a market crash, it may not come — at least not in the traditional sense. With low housing inventory, prices are being supported by supply-and-demand dynamics, even with higher borrowing costs.
Affordability remains the biggest hurdle for many would-be buyers. In 2025, buyers are facing:
Higher monthly payments due to interest rates
Increased home prices in popular markets
Rising costs of property taxes, insurance, and maintenance
But if your income is stable, and you’re prepared for the upfront and ongoing costs of homeownership, you may be in a stronger position than renters — especially with rents continuing to rise across the board. It's a great time to negotiate with sellers!
You need a long-term home: Buying still builds equity over time, especially if you plan to stay put for 5+ years.
You’re tired of rising rents: Rent prices don’t build equity — but mortgage payments do.
You’ve built up savings or equity: Whether it's from a previous home or just disciplined budgeting, that foundation gives you leverage.
Off-market opportunities or new builds: Some buyers are finding success with off-market homes or builder incentives not widely advertised.
Your finances are not yet stable (job changes, limited savings, or high debt).
You’re unsure where you’ll live long-term.
You’re banking on a major drop in home prices or interest rates soon.
Trying to “time the market” is tricky — and often costly. Instead, the best time to buy a home is when you’re personally and financially ready, not just when the headlines say it’s a good deal.
If you’re ready to take the next step but want expert advice based on your local market, reach out. Whether it’s buying your first home or moving up into a new build, we can explore what makes the most sense for you right now in 2025.
Laura Nelson
EXP Realty
DRE# 01394481
Book A Free Consultation: https://calendly.com/lnelsonhomes/book-an-appointment
buying a home
It’s the #1 real estate question buyers are searching for this year.
buying out of state
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Here’s what that means when you buy: more options for your search, more negotiation power for you.
Laura has worked in the real estate industry for over 21+ years and has amassed a renowned class of clientele and unmatched experience. Contact her today so she can guide you through the buying and selling process.