Are more homes hitting the market in 2025?
Buyers seeking homes will likely discover more on the market at the start of 2025 in a trend continuing for over a year, and while homes might take a bit longer to sell than they have recently, they are still moving faster than they were before the 2020 pandemic.
National Association of Realtors (NAR) data also indicates median list prices are a bit lower, due in part to an increase in sales of smaller homes, which typically are cheaper in most regions of the country.
Are you ready to get into the housing market now? Start the process with a mortgage pre-approval or continue reading to learn more about the state of the housing market.
Are there more homes to choose from on the current market?
Real estate agents are seeing almost 11% more homes listed for sale overall compared to a year ago, so potential buyers will have more to choose from. The report from the National Association of Realtors suggests in its analysis that “sellers may grow tired of waiting for significant changes in rates” and put their homes up for sale with less concern about current interest rates.
That’s good news for buyers, but even a slight difference in mortgage rates could add hundreds of dollars to your monthly mortgage payments, so it’s important to know what’s going on with rates as you explore buying a home.
Where are homes becoming available?
More homes are for sale in every region of the nation, notably in the West and particularly in metro areas around Denver, Las Vegas and Tucson, the National Association of Realtors’ annual data shows.
Homebuyers in the Midwest and South also should see more to choose from, including in areas around San Antonio and Dallas. In the Northeast, more homes are hitting the market, too, but at not quite the volume as in other regions.
Movement like this is a sign that the housing market is opening up to more buyers, and a local loan expert can be especially helpful in navigating the market in your area.
How long are homes lasting on the market?
It’s taking a bit longer for a house to sell, with the typical home on the market about 73 days, or about five days more than it typically took last year, the NAR suggests in its latest analysis. However, that’s still about 11 days faster than home sales in the years just before the pandemic.
And good news if you’re shopping for a home in the Midwest and Northeast: homes are selling in nearly the same number of days as last year.
Where are home prices headed?
Home prices can vary widely depending on where you plan to buy, with the national median home list price about $400,500, the National Association of Realtors says.
Sales of smaller homes have pushed down the median list price, but even with an increase in homes on the market, prices overall continue to go up, particularly in areas around Cleveland, Baltimore and Milwaukee, where list prices are up about 2.6%.
When home prices go up, a key to deciding what you can afford is understanding how mortgage interest rates can affect your monthly payments, but if mortgage rates seem too high now, a temporary buydown like our RateReduce program could help put homeownership within reach. However, it’s important to remember that temporary buydowns are only provided with a seller’s concession.
How can I start the mortgage process?
Home prices are unlikely to come down this spring, as spring and summer are generally the busiest for homebuying, so create a plan for paying for your home. If you are working with an agent and plan to buy soon, Guaranteed Rate Affinity’s Same Day Mortgage could help you buy quickly with down payment options as little as a 3%. We even have options that could help you afford that down payment.
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