Reasons Why You Should Buy a House in 2025

On my recent live streams, many viewers have been sharing with me their housing wins. Yes, people are buying houses in this insane crazy market, but the best part is these buyers have leverage and they're getting sellers concessions. They're getting sellers to pay their rate buy downs. Yep, that stuff is happening. So in this video, I'm going to tell you the reasons why you should be considering buying a house in 2025. So stop the doom scrolling about the crashing housing market. It's all going to be okay. If you've been with me for a while, or if you're brand new, welcome. Thanks for being here. You know, I'm that type of real estate agent. I'm not here to sell you a house. My purpose is to help educate you and guide you through the process. So my channel is all about educating the consumer about how to navigate your real estate transactions. Yes, I'm giving you reasons why you should consider buying a house right now, but it doesn't mean I'm telling you to go out and buy a house right now before you miss out. I'm not telling you that. You know what my rule is. If you're thinking about buying a house, you've got to make sure you have everything in line. And I'm talking about your down payment saved, your closing cost saved, emergency fund, your pre-approved, all the things you need to have your financial ducks in a row before you go and you make that jump. Because a lot of people, as we know, back in early in the pandemic, people just jumped on the opportunity of these low interest rates and just bought a house because of FOMO. Let's be honest. That's what happened. Some people did end up in trouble and they're struggling to make their mortgage payments. So I do not want that for you. So let's get into the reasons. The number one reason why you should be considering buying a house in 2025 is the rising inventory. A lot of housing markets in this country are seeing a rise in inventory. So what does that mean? You have a rise in inventory, which means more competition, which means sellers need to reduce their prices. It also gives buyers leverage like the example I gave in the beginning, how some of my viewers were able to get seller concessions towards their closing costs or the rate buy downs. This is why, because sellers need to compete against other sellers to get their houses sold. Okay, so speaking of price reductions, let's talk about some markets right now where we're seeing the most price reductions. In Phoenix, Arizona, 37% of their total listings had price reductions this year. 37%. Phoenix also saw an increase of inventory of 36.1% year over year. So do you see this? Do you see what's happening? The inventory's up. So now the home sellers are reducing their prices. Tampa, Florida saw the same thing. 34% of the total listings had price reductions. Their inventory increased 21.4% year over year. Raleigh, North Carolina, Raleigh's total listings had 30.4% of the total listings in Raleigh had price reductions. Their inventory increased 42% year over year. Nashville, Tennessee, believe it or not, 30% of their total listings had price reductions. They saw an increase in inventory year over year of 26.4%. So do you see what's happening here? We're having all these new homes hit the market. Therefore, the sellers need to bring the prices down. And then it's also giving you, the buyer, more leverage. So if you're interested in any of these markets, I highly recommend checking them out because you might be able to score a deal right now. The second reason why you should consider buying a house in 2025 is the interest rates are stabilizing. Now, I know they're not 3%, 2% like they were five years ago, but they're stabilized. They're hovering around 6.5%. When I did my research on this, to see what the analysts are forecasting for the rest of 2025, they're all pretty much in line that the rates are going to stay around this range of 6.5%. So for example, Fannie Mae, Fannie Mae is foreseeing the 30-year fixed rate mortgage end in 2025 around 6.3%. And they actually went into 2026. And they said the rates are only going to be around 6.2%. The Mortgage Bankers Association is predicting that the rates for the rest of 2025 are going to be 6.5%. Same thing with the National Association of Realtors. They're saying that the interest rates are going to be around 6.4%. So they're not going up any higher for now. I mean, look, we know things can change with everything going on in the world and in this country. God only knows what can happen tomorrow. But they're forecasting that they're going to stay in the mid-sixes. So that is a good thing, right? I know you're waiting for rates to come down. But honestly, I think this is what it's all going to be. It's going to be 6.5%. And so be it. That's not bad. It's not a bad rate. So this is another reason why I think you should be considering buying a house in 2025. The next reason is home builder incentives. Okay, I know you're all thinking like, oh my God, you just did a video a couple of weeks ago telling us what builders not to buy a house from. I know, I know, I know. And by the way, if you wanted to catch that, go check that out. It's a pretty good video, I must say. But here's the thing. The home builders got desperate in 2024, and that's continued into this year. So they're offering a lot of incentives, making the home really affordable. So for example, here's a builder that's located in the beaches in Delaware. Check this out. You can get up to $30,000 off. So it's $10,000 off the base price, $20,000 towards closing costs or your rate buy down, and they're paying half the transfer taxes. Yeah, because in Delaware, the transfer taxes are 4%. So this builder, Shell, is going to pay for half of that. So this is just one example of the incentives that are being offered today. And I think it's a great time to take advantage of them. But again, disclaimer, I know you're like, oh, you said don't buy from a builder. You can absolutely buy from a builder. You just got to do your homework and just make sure you do your own independent inspections of the home before you purchase it. So again, go check out that video if there's more information about that. The next reason is that unfortunately, rent prices are still rising. Yeah, there are a lot of markets right now where the rent prices are still going up. So if you're thinking of getting out of your current rental, and you want to go into another rental because you think all hope is lost, like I'm not going to be able to afford a house, let me just pursue another rental. Keep in mind, the rents are increasing. Now, depending on where you are, more than likely, those rents are higher. Why? Because the same thing as the housing, there's low inventory in a lot of markets, and that's why the prices go up. Think about it. If people are in a rental, and they have this fear like, I can't afford a house, I'm just staying put, this is why we're not seeing as many rentals become available. So keep that in mind. In some cases, I am seeing some rent prices are as high or higher than mortgage payments. It's so true. So listen, think about it. Do the math. If your lease is coming up, or if you've got like six months left on your lease, do the math and do the calculations. See what you can afford on a house, and see if you can afford that monthly mortgage payment. Talk to a lender. Start getting things in order because if you move into another rental, more than likely, you are going to be paying more than what you're paying now. Or if you're in your current place, they're more than likely going to raise your rent. So that's something super important, I think you should think about. I think it's a good incentive for you to go think about buying a house. If you need to be connected with a real estate agent, whether you're selling or buying a home in your market, don't forget to click that link down below, fill out those forms, and I will get you connected to an agent in your market. So again, I'm not here to push you to say, get out and buy real estate, go buy a house now. I'm not here to tell you that. I'm just giving you some reasons to think about, to consider, if you've been thinking about, maybe this is the year I buy a house. Listen, everyone stresses about the housing markets crashing, the prices are coming down. We're in for a correction, guys. And I think this is really good. We need to get back to a balanced market. So I'm going to be honest, seeing these price reductions in these markets makes me kind of happy. It does. I don't see this as a crash. I see this as a good thing. We've got to get back to that balanced market where it's going to be more affordable for people to buy a home. So there I said it. And a lot of people are going to disagree with me. I really don't care. I think we're going to be entering the age where now we can start considering homeownership because this correction is happening. No avoiding it. It's going to happen. And we should be taking advantage of that. So while you're thinking about whether or not now is the time you should buy a home and you need to know what types of houses are out there, you don't know much about what the different styles of houses are, you can look at this video right here. That'll tell you all the types of houses you should consider buying. So thank you so much for watching me today to get your dose of real estate reality. My name is Jackie Baker, and I will see you next time.