As the real estate market continues to evolve, experts are predicting new trends that will shape the home-buying landscape in 2025. After a rollercoaster ride since the pandemic, buyers who are prepared for these shifts will have the best chances in the year ahead. Here’s what you can expect.
1. A Shift Toward Move-In Ready Homes
In recent years, many buyers were willing to take on fixer-uppers to save money. But in 2025, the demand for move-in ready homes is expected to rise. With high interest rates limiting available funds for renovations, many buyers will prefer homes that are already updated and need little work.
“Move-in ready homes are likely to be the most appealing choice in 2025,” says Jon Howard, mortgage loan originator at Lucid Lending. “Especially for first-time buyers who can’t afford major renovations, turnkey homes will be in high demand.” Multifamily homes, which offer affordable housing options and the potential for income, will also see increased interest.
2. Longer Time on the Market
Over the last few years, homes sold rapidly, often within days of being listed. However, experts predict that homes will spend more time on the market in 2025. Inventory is expected to rise, giving buyers more choices and reducing the urgency to make quick decisions.
“More inventory means buyers will have more time to shop around, which will lengthen the sale process,” says Howard. While desirable homes will still sell fast, properties that need some work or are priced too high might sit on the market longer.
3. Economic Uncertainty Will Impact Buyer Confidence
While inflation and economic concerns are still on buyers’ minds, many are still planning to purchase homes in 2025. With an uncertain economic outlook, some buyers may hesitate, but others may act quickly, especially if they believe prices will rise.
“Buyers may take longer to make decisions, which could lead to longer sale cycles,” explains Howard. However, nearly 70% of buyers still plan to act in the next six months, despite market uncertainty, according to industry data.
4. Many More Homes To Choose From, Making Homes More Affordable
Though interest rates have been high recently, they are expected to decrease slightly in 2025 as inflation slows. This could make buying a home more affordable for some buyers, especially those on the fence about entering the market.
“Interest rates are expected to drop as inflation continues to ease,” says Danielle Hale, chief economist at Realtor.com. “This will provide relief for those looking to buy, though many buyers will continue to rent until rates go lower.”
5. Homes May Be Priced More Reasonably
After a period of skyrocketing home prices, experts predict that prices will stabilize in 2025. The days of bidding wars and homes selling well above asking price may be over.
“The market is expected to slow down in 2025, with fewer homes selling above asking price compared to the last few years,” says Howard. While some homes in sought-after locations may still get offers above asking, the general trend is toward more reasonable pricing.
6. Demand for Low-Maintenance Homes
With remote work continuing for many, buyers, particularly millennials, will prioritize homes that require less upkeep. Low-maintenance homes, energy-efficient upgrades, and homes with home offices will be in high demand.
“Millennials, who make up the largest group of homebuyers, are looking for homes that fit their busy lifestyles and are ready to move into without a lot of work,” says Bryson Taggart, senior business development manager at Opendoor. Expect to see increased demand for homes with modern features and minimal maintenance.
7. Best Time to Buy: Spring or Fall
Timing your home purchase can make a difference. Spring tends to offer the most homes for sale, making it a prime time to shop. However, fall may present opportunities for buyers to negotiate better deals, as demand softens.
“Spring usually sees more homes available and higher buyer interest,” Hale advises. “But in fall, buyers may have more market power and can negotiate more favorable terms.”
8. Every Buying Situation is Unique
Buying a home is a significant decision, and the best time to buy depends on your financial situation and personal needs. “If you find a home that fits your needs and is in your desired location, waiting could be risky,” says Michael Gifford, CEO of Splitero. Ultimately, buyers should consider their own circumstances before jumping in.
In Conclusion
The 2025 housing market will offer new opportunities for buyers who are ready for the changes ahead. With more inventory, lower prices, and a shift toward low-maintenance, move-in ready homes, it’s an exciting time to enter the market—if you know what to expect and plan ahead!