Are you thinking about buying a home, but not sure if now’s the right time? A lot of people are waiting and wondering what the market’s going to do next. But here’s something only the savviest buyers realize:
This summer might actually be the best time to buy in years. Here are three big reasons why.
1. You Have More Negotiating Power
After several years of sellers having all the leverage, things are starting to shift. Check out the graph below. It uses data from Redfin to show that right now, there are more sellers active in the market than buyers:
Take a look at what happened back in 2021 through roughly 2023. In that time period, there were far more buyers (the blue line) looking to buy than homes for sale (the green line). That’s what drove the intense competition, bidding wars, and the exponential price growth the market saw back then.
Now, the market has shifted, and buyers are regaining their negotiating power as a result. With more sellers than buyers, sellers may be more willing to pay for repairs, cover some of your closing costs, or lower their asking price. The return of this kind of normal balance is a sign of a much healthier, more sustainable market. As Lawrence Yun, Chief Economist of the National Association of Realtors (NAR), explains:
“ . . . with housing inventory levels reaching five-year highs, homebuyers in nearly every region of the country are in a better position to negotiate more favorable terms.”
And just in case you’re worried there are too many homes on the market, here’s what you should know. Overall inventory is still lower than normal, so you don’t have to worry about a nationwide oversupply or a crash.
2. You Have More Choices
The number of homes for sale has improved a lot. Based on the latest data from Realtor.com, more homes were listed this May than in May 2024 or May 2023 (see graph below):
And more homes for sale means more choices. There’s a good chance your perfect match just hit the market – or it will soon. So, it’s a great time to explore what’s out there. As Jake Krimmel, Economist at Realtor.com, says:
“With more fresh inventory hitting the market, buyers have better opportunities to find a home that fits their needs.”
3. You May See More Flexibility on Price
With more homes for sale, they’re not selling at the same frenzied pace they were just a few years ago.
Since homes are taking more time to sell, some sellers are choosing to lower their asking prices to draw buyers back in or speed up the process. And that’s to-be-expected. According to Realtor.com, 19.1% of listings had a price cut this May (see graph below):
That’s the fifth straight month where more sellers have reduced their price. And, as of May, the volume of price cuts is back at normal levels. This is yet another sign of the return to a more balanced market.
While you shouldn’t expect a big discount, you may find sellers are a bit more flexible right now. As a recent article from The Street says:
“Although sellers have had the upper hand in the housing market over the past few years, houses are now staying on the market for longer, shifting negotiating power back to homebuyers.”
Just remember, most sellers still aren’t adjusting their prices – just the ones who overpriced to start with. So, this isn’t a sign of a crash, it’s a sign of some sellers having outdated expectations in a shifting market.
Bottom Line
This summer brings a powerful combo for buyers: more homes to choose from, less competition, and sellers being more flexible on pricing. If you’re ready to make a move, connect with Stovall Team today 714.343.9294. We’d love to help you take the next step.
What would finding the right home this summer mean for your next chapter?
Housing Market Forecasts for the Rest of 2025
If you’ve been watching the market, you’ve likely noticed a few changes already this year. But what’s next? From home prices to mortgage rates, here’s what the latest expert forecasts suggest for the rest of 2025 – and what these shifts could mean for you.
Will Home Prices Fall?
Many buyers are hoping home prices will come down soon. And recent headlines about prices dipping in some areas are making some people believe it’s just a matter of time before there’s a bigger drop. But here are the facts.
While home price growth is slowing down, that doesn’t mean we’re headed for a crash. As NAHB explains:
But experts say, even with that slowdown, prices will still rise this year at the national level. The average of 8 leading forecasters shows prices are expected to go up 1.5-2% in 2025 (see graph below):
That means, if you’re waiting for a major drop, experts agree that’s just not in the cards.
Keep in mind, while some markets are already seeing prices come down slightly, the average dip is just -3.5%. That’s a far cry from the nearly 20% decline the market experienced during the 2008 crash.
Plus, those small changes are easily absorbed when you consider how much home prices have climbed over the past few years. Data from the Federal Housing Finance Agency (FHFA) shows prices are up 55% nationally compared to just 5 years ago.
The takeaway? Prices aren’t crashing. They’re expected to keep climbing – just not as quickly these days. And some may argue they’ll be closer to flat by the end of this year. But, again, this is going to vary by market, with some local ups and downs. So, lean on a pro to see the latest price trends for your area.
Will Mortgage Rates Come Down?
Another common thought among today’s buyers is: I’m just going to wait for rates to come down. But is that a smart strategy? According to Yahoo Finance:
In other words, don’t try to time the market or wait for a drop that may not be coming. Most experts say rates will remain in the 6s, and current projections have them settling in the mid-6% range by the end of this year (see chart below):
And that’s not a big change from where they are right now. So, if you need to move, let’s talk about how to make it happen and what you should watch for. Because while rates may not be as low as you want them to be, you don’t want to put your needs on the back burner, hoping for something the data shows isn’t likely to happen.
Working with an expert who is keeping an eye on all the economic factors that can influence mortgage rates is going to be essential this year. That’s because changes in things like inflation and other key drivers could impact how rates move going forward.
The Takeaway for Buyers and Sellers
Whether you’re buying, selling, or thinking about doing both, this market requires strategy, not guesswork. Prices are still rising nationally (just more slowly), and rates are projected to stay pretty much where they are, so the bigger picture is one of moderation – not a meltdown.
Bottom Line
If you want to make a move, your best bet is to focus on your personal situation – not what the headlines say – and work with a real estate pro. Stovall Team knows how to navigate the shifting conditions in your local market.