Is It a Good Time to Buy a House?

The real estate market is full of surprises, but when you’re ready to make a move, that’s what truly matters. Waiting for the perfect moment may not be necessary.

If you’re in the market for a new home, here’s what you need to know.

The latest news: More homes are becoming available. Buyers can anticipate more options and less competition. Continue reading to learn about:

Similar to a summer heatwave, mortgage rates continue to rise, putting pressure on buyers. High mortgage rates mean your budget won’t go as far when purchasing a home.

The average interest rate for a 30-year fixed-rate mortgage was 6.84% APR for the week ending June 26, according to data from Zillow provided to BW. A basis point represents one one-hundredth of 1%.

Data is based on the week ending June 26, 2025, as provided by Zillow to BW.

The combination of tariffs and recession fears can lead to overthinking. Here are some grounding tips:

• 🤔 Consider pausing: If your financial situation feels uncertain — for example, concerns about job stability or bill payments — it might be best to hold off.

• 😌 Stay the course: If your income is stable and your budget is solid, don’t let alarming headlines derail your plans.

After a period where sellers had the advantage, the landscape is starting to shift.

“Apart from a brief blip early in the pandemic, we’re likely to see the most buyer-friendly summer in nine years,” noted Danielle Hale, chief economist at Realtor.com.

What does a more buyer-friendly market look like? Hale points out these indicators:

• ✅ More housing options available.

• ✅ Flexibility on pricing (including sellers accepting offers below the asking price).

• ✅ Willingness to negotiate on contract terms.

Let’s delve into the specifics using May 2025 data from the National Association of Realtors (NAR).

Encouraging news: Inventory has increased by over 20% compared to a year ago, as per the NAR. Currently, there is a 4.6-month supply of homes available for sale.

Home prices have been increasing for 23 consecutive months. The national median price for existing homes sold in May was $422,800, according to the NAR. Median prices vary across regions:

The high cost of buying could be contributing to relatively stagnant home sales, which decreased by 0.7% compared to the previous year. Lawrence Yun, NAR chief economist, attributed the sluggish sales to elevated mortgage rates.

“If mortgage rates decline in the latter half of the year, we can anticipate an uptick in home sales nationwide due to robust income growth, ample inventory, and a record number of jobs,” he stated.

The Realtors Confidence Index for May 2025, a survey of NAR members, indicates a less competitive market with these observations:

• Bidding wars are less common.In May, a listed home received an average of 2.5 offers. For context: During the competitive bidding era of 2021, the average was around five offers per home.

• Fewer homes are selling above the list price.In May, 28% of homes sold above the listing price, down from 30% the previous year.

• Homes are spending more time on the market.In May, houses were on the market for a median of 27 days, longer than the previous year (24 days).

Take these positive factors into consideration:

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