Why Now is Actually a Great Time to Buy a House

Every first-time buyer asks the same question: “Is now the right time to buy, or should I wait?”

Here’s the truth: trying to time the housing market rarely works. Prices, rates, and competition never line up perfectly. The smarter play is to buy when you’re financially ready, then adjust as the market shifts.

The conventional wisdom says you need perfect conditions to buy a house. Perfect credit, perfect timing, perfect market. But that's like saying you should only start a startup when everything is lined up perfectly. (Spoiler: it never is.)

Experts agree: waiting for the perfect mix of low rates and low prices is a losing strategy.

• Buy when you’re ready. You own the home, start building equity, and refinance later if rates drop.

• The cost of waiting is real. Even if mortgage rates dip, buyer demand usually spikes, bidding wars restart, and home prices rise. You may save on interest but pay more for the house.

• Right now, the market favors buyers. After years of overheated competition, conditions have cooled. Homes are sitting longer. Sellers are more flexible. Negotiations are back on the table.

Takeaway: Don’t chase the bottom. Buy when your finances support it.

Rates are high compared to pandemic lows, but they aren’t expected to crash.

• Current rates: Around 6.8%.

• Forecast 2025–2026: Rates will likely stay in the 6% range. A small drop is expected, but not back to 3–4%.

• Federal Reserve cuts: Even if the Fed lowers its benchmark, mortgage rates may not fall dramatically.

• Refinancing window: Many buyers today will refinance in 2026 or 2027. Plan for closing costs when you run those numbers.

• Strike rate strategy: Set a clear target rate where you’ll take action, such as 6% or 5.75%. Waiting for 4% again is unrealistic.

Takeaway: Expect stability, not miracles. Build a plan that works at today’s rates, with refinancing as a bonus later.

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Find your dream home

Seasonal trends work in your favor if you shop at the right time.

• Peak inventory: Listings often hit their highest levels in early fall. More options mean more negotiating room.

• Best week of the year: October 12-18, 2025, is projected as the sweet spot for buyers nationwide.

• Lower prices: Homes listed in October often run 3.4% below seasonal peaks. On a median home, that’s $15,000+ in savings.

• Discounted listings: About 5.5% of homes see price cuts this time of year.

• Less competition: Demand drops by about 31% compared to the busy spring.

• Regional timing: Each city runs on its own clock. In New York and Philadelphia, September looks better. In Phoenix or Tampa, the deals often land in November or December.

Takeaway: If you’re buying in 2025, circle fall on your calendar.

Market conditions matter, but your personal finances matter more.

• Get pre-approved. You’ll know your budget and move quickly when you find the right home.

• Save for the down payment. More down means smaller payments, but don’t get stuck chasing 20%.

• Understand PMI. Private Mortgage Insurance costs between $27 and $200 per month, depending on the loan. It’s often cheaper to pay PMI than wait years to save a larger down payment while home prices climb.

• Budget beyond the mortgage:

1. Utilities for a larger space
2. Property taxes
3. Insurance
4. HOA fees
5. About 1% of the home’s value per year for maintenance

• Plan for closing costs. Both on the purchase and later refinancing.

Takeaway: Buy when your finances are ready, not when headlines say “now is the time.”

First-time buyers benefit from flexibility. Here’s where to look:

• New construction: Builders want to move inventory. They offer concessions like rate buy-downs or upgrade credits. With rising labor and material costs, waiting could mean higher prices.

• Adjustable Rate Mortgages (ARMs): If you plan to move in a few years, ARMs might give you a lower initial payment. Weigh the risks carefully.

• Widen your search: Up-and-coming areas, secondary markets, or fixer-uppers often offer better deals.

• Regional plays:

1. Midwest and Northeast markets (Detroit, Chicago) offer stability and affordability.
2. Secondary Sun Belt markets (Austin, Charlotte) remain attractive for growth buyers.

Takeaway: Keep options open. Flexibility gives you leverage.

Ask yourself:

• Am I financially prepared today?

• Would waiting increase my buying power, or only increase competition?

• What’s my strike rate for refinancing later?

• Am I better off starting equity now than chasing a perfect market?

The best time to buy isn’t when the market is perfect. It’s when you’re ready.

Fall 2025 looks like an advantageous window. Rates are stable, inventory is strong, and competition is easing.

So here’s the decision in front of you: will you wait for a market that never lines up exactly right, or will you prepare now and step in when the opportunity fits your goals?

Want to explore how to use these market conditions to your advantage? We're always happy to jam on ideas at reAlpha. Sometimes the best opportunities come from conversations you weren't expecting to have.

(And yes, that's a hint to reach out. The worst that can happen is you'll learn something interesting.)

With reAlpha, you keep a sizable portion of the buyer agent commission and gain access to AI-powered insights on affordability, timing, and market forecasts.

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