Navigating Today's Real Estate Market
As the housing market continues to evolve in 2025, homebuyers and sellers face important considerations regarding market volatility, rising inventory, and changing government policies.
The Housing Market Amidst Economic Uncertainty
Despite ongoing economic volatility, housing has moved to the forefront of financial conversations. Recent tariff announcements created significant market turbulence, with mortgage rates experiencing what industry professionals call "whiplash" - dramatic drops followed by quick rebounds.
"It's so true there's just so much uncertainty right now," explains Will. "We're going one way and you think 'yeah, let's plan for this' and then next thing you're like 'can't plan for that, we're going to have to wait.'"
This volatility underscores the importance of staying informed and prepared. As Brian advises, "Things move very quickly and in a second things could completely change if you're not taking the adequate steps to get where you want to go."
Real Estate vs. Stock Market: Which Investment Wins?
With recent market fluctuations affecting both real estate and stocks, many investors are questioning which provides better long-term security. Industry experts point to real estate's historical stability, even during uncertain economic times.
"A home provides shelter, a home provides a roof, a home provides an instrument that later down you can use to pay debt down." explains Will. "The longevity of it - I feel an investment in real estate is going to be far greater."
While stocks offer liquidity and accessibility through mobile apps, real estate offers tangible security with relatively predictable appreciation. For those comfortable with real estate's longer investment horizon, it continues to demonstrate consistent returns over time.
"In this moment in time, it's easy to say that both work because both are true but for very different reasons," Andy notes. "Long-term, I think both are proven to generate a return. You just have to stay in them long enough."
Policy Changes Aimed at Boosting Housing Supply
The current administration has placed housing affordability at the forefront of policy discussions, with new legislation aimed at increasing inventory and controlling prices. Two bills are making their way through Congress with bipartisan support:
The Neighborhood Homes Investment Act: Designed to create jobs and stimulate local economies through housing development
The Housing Supply Frameworks Act: Focused on improving zoning and land use practices to free up more developable land
These initiatives include tax credits for developers and land grants, strategies long advocated by industry experts to incentivize more building. With inventory remaining a persistent challenge, these policy changes could help bring more housing supply online in the coming years.
"I'm optimistic because there was an executive order with the new administration that specifically cited the reduction of housing costs for Americans and to unclog the inventory issue." notes Andy.
Is Now the Right Time to Buy a Home?
Despite market volatility, multiple factors suggest 2025 could be a favorable time for homebuyers who are properly prepared:
Rising Inventory
After 73 consecutive weeks of inventory growth as of March 2025, buyers now have more options than at any point in recent years. Current inventory stands at approximately 696,000 homes nationwide, reducing competition and giving buyers more negotiating power.
Price Stability
While prices remain elevated compared to pre-pandemic levels, they have stabilized in most markets. Approximately 30-35% of listings have experienced price reductions, which is consistent with normal market conditions.
The Rate Perspective
Current mortgage rates, though higher than the historic lows of 2020-2021, present an opportunity when viewed through a long-term lens.
"If you buy a house now and your rate is 7%, if rates go lower, well then you have the house to refinance to a lower rate later," explains Andy. "But if 7% is where you're at now and rates in 5 years are higher, then you now do have the lowest of the time frame."
Practical Advice for Today's Homebuyers
For those considering purchasing in 2025:
Prepare Your Finances
Credit utilization should be below 30% on all accounts
Ensure consistent, on-time payments for all obligations, including rent
Build savings beyond just the down payment to cover closing costs and initial home improvements
Get Pre-Approved Early
"If you're looking to buy a house a week out to get pre-approved, you're already months out behind," warns Brian. Having your financing in order before finding your dream home allows you to move quickly when opportunities arise.
Consider Creative Solutions
For first-time buyers struggling with affordability, consider alternative approaches. "Embrace the idea if you're in a situation that you're able to house hack - buy with your friends, buy with family, and try to get your foot in the door," suggests Brian.
Leverage Professional Expertise
Choose experienced professionals who understand today's unique market conditions:
Seek realtors with strong negotiation skills, especially given recent changes to buyer commission structures
Work with lenders who offer strategic advice beyond just taking your application
The Take Away
Despite challenges and uncertainties in today's housing market, there are promising signs for both buyers and sellers. Increasing inventory, price stability, and potential policy changes all point toward improved conditions ahead.
As Will confidently states, "Five years forward, five years down the line, you're not going to regret that decision. You're going to be like, 'Thank goodness I did that.'"
The key to success in today's market lies in preparation, working with knowledgeable professionals, and staying informed about rapidly changing conditions.
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