What Homebuyers Want Most in 2025 — And How the Market’s Adapting
When it comes to buying a home, today’s buyers have made one thing clear: they want affordability to improve. A recent Bank of America survey asked would-be homebuyers what would make them feel confident about making a move, and the top answers centered around lower prices and better mortgage rates.
The encouraging news? Both are showing signs of movement — and that could reshape the homebuying experience as we move through 2025.
Let’s take a closer look at what’s changing and what it means for you as a buyer.
Are Home Prices Finally Starting to Moderate?
Yes — slowly, but noticeably.
Over the past few years, home prices rose at lightning speed, often leaving hopeful buyers on the sidelines. From 2020 to 2021, for instance, national home values jumped nearly 20% in just one year. Now, that rate of growth has cooled dramatically.
Experts project that prices in 2025 will rise only in the single digits, a pace far more manageable than what we’ve seen in recent memory.
That doesn’t mean prices are falling across the board — far from it. In some markets, modest growth continues, while others are experiencing gentle corrections. The key takeaway: prices are stabilizing, not spiraling.
For buyers, this moderation brings breathing room. It allows for clearer budgeting, more predictability, and less pressure to make rushed offers.
Are Mortgage Rates Starting to Ease Up?
Thankfully, yes — and it’s making a noticeable difference.
After hitting highs that startled many buyers, mortgage rates have pulled back in recent months. That shift has already opened new doors for some who were previously priced out.
As Lisa Sturtevant, Chief Economist at Bright MLS, explains:
“Slower price growth coupled with a slight drop in mortgage rates will improve affordability and create a window for some buyers to get into the market.”
Even a small drop in rates can translate to hundreds of dollars saved each month, depending on your loan amount.
It’s important to remember that rates will likely remain somewhat volatile — moving up and down with economic data — but most forecasters expect them to hover in the low to mid–6% range throughout 2025. That’s a welcome shift from where we were just months ago, and potentially a signal of even more improvement ahead.
What Do These Changes Mean for Buyers?
In short: confidence is coming back.
While the broader economy may still feel uncertain, the housing market is beginning to find balance again. Prices are moderating, rates are easing, and more buyers are feeling encouraged to explore their options.
If affordability was your biggest hurdle last year, you may find that today’s conditions tell a slightly different story. A home that once felt out of reach could now be within budget — especially if you’re working with a professional who understands how to navigate this evolving market.
Why Working with an AI-Certified Agent Matters
Buying a home in a shifting market requires both experience and insight. As an AI Certified Agent, Melinda combines personal expertise with advanced technology to help clients make smarter moves.
That means using data-driven tools to:
Identify opportunities faster
Market listings to the right buyers
Simplify decision-making with clear, actionable insights
Technology helps streamline the process, but experience — and empathy — make all the difference. Melinda’s approach ensures you get both.
Bottom Line
The two biggest concerns for buyers — prices and rates — are both trending in a more favorable direction. While challenges remain, the market is adjusting in ways that could make 2025 a promising time to reenter the conversation about homeownership.
If you’ve been waiting for a sign that it’s time to start looking again, this might be it.
Ready to explore your options? Let’s talk about your next move and find out what’s possible in today’s market.
Frequently Asked Questions
Q: Are home prices expected to drop in 2025?
A: Not dramatically. Most experts expect modest single-digit growth nationwide. Some markets may see small dips, but the days of double-digit surges appear to be behind us.
Q: What’s considered a good mortgage rate right now?
A: Many lenders are offering rates in the mid–6% range, which is an improvement from last year’s highs. Even a quarter-point drop can make a meaningful difference in affordability.
Q: Should I buy now or wait for lower rates?
A: Waiting for the “perfect” rate can be risky. If you find a home you love and can afford comfortably, it’s often better to buy now and refinance later if rates drop further.
Q: How can an AI Certified Agent help me as a buyer?
A: AI Certified Agents use advanced marketing and analysis tools to help clients move faster and smarter. That means better insights, better timing, and often better outcomes.
Sources
Bank of America Homebuyer Insights Report 2025: https://about.bankofamerica.com
Bright MLS Economic Report (Lisa Sturtevant): https://www.brightmls.com
Freddie Mac Mortgage Rate Data: https://www.freddiemac.com
