Is It a Buyer’s or Seller’s Market in 2025?
Here’s What You Should Know Before You Buy a Home
As we head deeper into 2025, many prospective homeowners are asking the big question: “Is now a good time to buy a house?” Whether you’re a first-time homebuyer, a real estate investor, or someone looking to upgrade or downsize, understanding today’s real estate market trends is crucial.
We’ll break down whether it’s currently a buyer’s or seller’s market, explore housing market forecasts, look at the latest mortgage rates and affordability metrics, and help you decide if it’s smarter to buy a home now or wait. We’ll also examine inventory trends, regional shifts (including Austin, TX), and expert advice backed by Redfin, Investopedia, and Freddie Mac.
If you’re looking for up-to-date real estate insights, market predictions, and home buying tips, this guide will give you everything you need to make a confident decision.
As of mid‑2025, the U.S. housing market has decisively shifted toward buyers.
According to Redfin, there are now approximately 500,000 more homes listed than buyers in the market, the largest gap since the company began tracking inventory in 2013¹. Only 28% of homes are selling above asking price, a steep decline from the 53% seen at the height of the pandemic-era market². The average buyer is paying around 7% less than the listing price; $397,000 versus a $426,000 list price² which gives buyers clear leverage in negotiations.
Mortgage rates remain relatively high at around 6.84%, though they’ve eased slightly compared to earlier peaks in the year³. These elevated rates have kept some would-be buyers on the sidelines, but they haven’t stopped a rising inventory trend. Nearly 44% of active listings have been on the market for more than 60 days⁴, a clear signal that sellers are losing power.
Spotlight on Austin, TX: Local Market in Transition
Austin’s housing market exemplifies this buyer-friendly shift. Active listings in the metro area hover around 17,456, a major increase from pandemic lows⁵. Prices have also corrected from their 2022 peak, with median sale prices dropping approximately 14.6% over the past two years⁶. Currently, homes in Austin sit on the market for an average of 48 days, compared to 42 days last year⁷.
In specific ZIP codes like 78736 and 78739, months of housing supply have risen to 6–10 months⁸, a sign that some submarkets are fully in buyer’s territory. County-level data shows similar patterns across Travis, Williamson, and Hays Counties. Each with growing inventory and slower turnover⁹.
Expert Opinions & Predictions for 2025
Robert Reffkin, CEO of Compass, noted that housing inventory in the U.S. is at its highest in five years, with many sellers offering price reductions and incentives¹⁰. He emphasized that while rates remain elevated, they’ve stabilized enough to give serious buyers more flexibility and less urgency to compete. Analysts at Redfin and Bankrate expect mortgage rates to stay between 6% and 7% through the rest of 2025, while home prices are projected to remain flat or drop slightly by year’s end¹¹.
Still, affordability remains a concern. Despite greater buyer leverage, monthly mortgage payments remain steep due to high interest rates, pricing many first-time homebuyers out of the market¹².
Should You Buy a Home in 2025?
If you’re financially stable with a steady income, good credit, and at least a 20% down payment, now could be an excellent time to purchase a home. Buyers face less competition, have more choices, and can negotiate favorable terms. However, if your budget is tight, the combination of high rates and lingering affordability gaps may make waiting a more prudent option.
Sources
¹ Business Insider
² Axios
³ AP News
⁴ Business Insider
⁵ Team Price Real Estate – Austin Market Reports
⁶ Redfin Data – Austin Metro Trends
⁷ Austin Board of REALTORS®
⁸ Local Market Monitor Reports
⁹ Williamson, Travis, Hays County Housing Data
¹⁰ Business Insider Interview with Compass CEO
¹¹ Redfin & Bankrate Forecasts
¹² Investopedia Home Affordability Index