Thinking about buying a home? Why NOW is the opportunity you’ve been waiting for.
After years of fierce bidding wars and sky-high prices, the market is cooling in your favor. There are more homes to choose from, competition is down, and sellers are getting more realistic with their prices. If you’re a buyer, especially a first-time buyer, it’s time to start paying attention.
Let’s break it down.
1. The Economy Is Calming and That’s Helping Housing
Back in April, home sales were sluggish. Stock market dips and global trade worries had a lot of buyers pumping the brakes. But things turned around in May:
-
The S&P 500 rebounded
-
Tariff worries started to fade
-
And home sales rose 3.5% compared to April
That’s a strong signal that buyer confidence is returning, slowly but surely.
2. More Homes for Sale Than We've Seen in Years
Here’s a stat that should make buyers smile: Inventory is up nearly 20% compared to this time last year.
That means more options, less pressure, and a much better chance of finding a home that fits your budget and lifestyle.
In fact, there are more homes on the market now than at any point since July 2020.
3. Less Competition = More Negotiation Power
Remember how crazy things got over the last few years? Buyers were waiving inspections, offering over asking, and still losing out.
Not anymore.
-
Buyer competition is at its lowest May level since 2018
-
Homes are staying on the market longer, 17 days on average
-
Nearly 1 in 4 homes had a price cut in May
Translation? You can breathe. And negotiate.
4. Prices Are All Over the Map, In a Good Way
Nationwide, the average U.S. home is valued at about $366,000. But not all markets are behaving the same way:
📈 Biggest monthly increases:
-
Buffalo, NY (+1.7%)
-
Cleveland, OH (+1.7%)
-
Milwaukee, WI (+1.5%)
📉 Biggest monthly drops:
-
San Jose, CA (-0.8%)
-
Miami, FL (-0.4%)
-
San Francisco, CA (-0.3%)
Takeaway: If you’re looking in a city where prices are falling, it could be your moment to buy before things bounce back.
5. Mortgage vs Rent: Renting Is Cheaper... for Now
Let’s talk affordability. Even though rates are down slightly from last year, buying is still pricey.
-
The typical monthly mortgage payment is about $1,922
-
Renting a similar home is about $100/month cheaper
But here’s the catch: rent keeps rising slowly, and buying builds equity. If you can afford the monthly cost and plan to stay in your home a few years, buying still wins in the long run!!!
6. Builders Are Slowing Down, But Deals Are Still Out There
New home construction has taken a hit, with housing starts dropping to their lowest level in five years. But many builders still have inventory and they’re motivated to sell.
-
Some are offering closing cost help
-
Others are throwing in upgrades or rate buydowns
Don’t overlook new builds they often come with fewer surprises and better warranties.
7. Where It’s a Buyer’s Market and Where It’s Not
According to Zillow’s Market Heat Index, we’re in a neutral market overall but some cities are swinging buyer-friendly, while others are still hot for sellers.
🔥 Best markets for buyers:
-
Miami, FL
-
Tampa, FL
-
Jacksonville, FL
-
Austin, TX
-
New Orleans, LA
💡 Tip: If you're looking in these areas, you may have more wiggle room on price and terms.
8. Smart Moves for Buyers Right Now
If you’re buying this summer, here’s what to do:
✅ Get pre-approved: With more homes and fewer bidding wars, you want to move quickly when the right place pops up.
✅ Focus on price-cut listings: These sellers are motivated. You may be able to negotiate closing costs or extras.
✅ Compare rent vs. buy in your market: In some cities, renting for a year might give you time to save more.
✅ Consider homes that have been on the market 30+ days: These are prime for offers under asking.
✅ Look at new construction: Builders are still eager to move inventory and may offer better financing terms.
9. What’s Coming Next?
Experts are forecasting:
-
Slight price drops in the second half of 2025
-
Mortgage rates staying relatively steady
-
More rental inventory coming online, which could slow rent increases
If you're waiting for the "perfect time," this might be as close as you’ll get.
10. Bottom Line: It’s a Market Shift — and It Favors Buyers
After years of being in the driver’s seat, sellers are starting to feel the pressure. More listings. More price cuts. Less competition.
If you’ve been frustrated over the last few years trying to buy, 2025 could be your fresh start.
Just make sure you’re ready, financially, mentally, and with a great agent at your side.
