One of the most common questions in real estate is, “Is now a good time to buy a house?” or “What’s the market looking like right now?” While the answer isn’t always black and white, let’s dive into why 2025 could be your year to finally purchase a home.
We’re already seeing some exciting trends in the market this year, and there are plenty of benefits to owning a home versus renting. Not only does homeownership come with long-term financial advantages, but it also provides greater stability and the freedom to truly make a space your own.
In 2025, the number of homes hitting the market each day is on the rise! According to Realtor.com, housing inventory grew by 22% in 2024 – and that number is projected to increase another 11–15% this year. That’s great news for buyers who haven’t quite found the perfect home yet, as more options will become available.
We’re also seeing a significant increase in new construction. According to our local MLS in Greenville, as of January 2025, over 30% of listings are brand-new builds. While you might assume these homes come with a higher price tag, many are actually comparable, or even cheaper, than pre-owned homes. Builders are focusing on smaller, more cost-effective designs that still deliver on quality. If you’re having a hard time finding something within your budget, ask your realtor about new construction options. They could open up a whole new range of possibilities.
Interest rates are always a major factor when it comes to deciding if it’s the right time to buy. Although rates have been higher recently, they’re expected to decrease in 2025. We’re unlikely to see the ultra-low 3–4% rates we once had, but many experts predict rates will settle in the mid-6% range by the end of the year. Don’t let this discourage you. Every little drop in interest can make a difference in your monthly mortgage. At the same time, home prices are high and expected to continue rising, so buying sooner rather than later could be a wise move. The sooner you purchase, the sooner your home starts building equity.
Remember, location plays a big role in pricing. Check in with a local real estate agent to get a sense of what homes are selling for in your desired area – it can vary significantly from place to place.
While we’ve touched on some current market conditions, it’s also worth highlighting the long-term benefits of homeownership. Buying a home helps grow your net worth and brings a sense of security as your mortgage is paid down and your property gains value. It is reported that a majority of first-time buyers report feeling uncertain about their long-term financial future while renting. Rent might seem more affordable short term, but prices continue to climb year after year, making it even harder to save for a future purchase.
Owning a home also gives you full creative freedom. Whether it’s customizing a brand-new build or renovating a fixer-upper to reflect your style. And let’s not forget, buying your first home can be a fun and exciting journey! Sit down with a realtor to discuss your budget and dream home goals to see if 2025 is your year to take the leap.
There’s no definitive answer to the question, “Is now the right time to buy?” But the truth is, there’s no guaranteed market in the future either. What matters most is your personal timing. By carefully evaluating your financial situation and lifestyle needs, you can make a well-informed decision that sets you up for long-term success and satisfaction.
Here’s to finding the perfect home in 2025! Happy house hunting!
