Key takeaways:
Spring has officially begun, and with it comes prime homebuying season. So, hoping to get a jump on competition, many homebuyers are wondering if it’s a good time to enter the housing market.
Housing is still largely unaffordable for most of the country, after all, although recent mortgage rate drops have given some buyers hope. Even so, the market is still challenging, so it’s natural to wonder if now is the right time to take the leap.
In short, whether or not it’s a good time to buy a house boils down to if it’s a good time for you to buy a house. Let’s dive a bit deeper into market trends to help you answer, “Should I buy a house now or wait?”
From Redfin’s Chief Economist
“Now is the best time to buy in the last two years. Tariff-fueled inflation fears have pushed mortgage rates to five-month lows, and house prices are comparable to 2022 highs – both good news for buyers. Plus, there is significantly more inventory, which means buyers may have the upper hand in negotiation. In many ways, it’s a buyer’s market. However, due to tariffs, experts now believe a recession is more likely to occur than now, which would significantly affect buyers’ budgets and future income.” – Daryl Fairweather, Redfin Chief Economist.
Market considerations: What buyers need to know about the housing market
Here are some key market trends to keep an eye on and help you make an informed homebuying choice.
House prices: Sky-high and still climbing
The median U.S. sale price currently sits at $426,000 – up 3.3% from a year ago. House prices have posted year-over-year gains for 20 consecutive months and are 32% higher than they were in 2020.
Although growth has slowed, we expect prices to continue rising this year, pushing more would-be buyers into renting. Redfin recently found that the homeownership rate for Gen Zs and Millennials – the largest renter populations – dipped in 2024, highlighting the lack of affordability and growing economic uncertainty.
For those planning to buy, acting sooner rather than later could help lock in a lower price before homes become even more expensive. Monthly housing costs just rose to their highest level on record.
>> Read: Redfin’s 2025 Housing Market Predictions
Mortgage rates: Lower, but volatile
As of April 4th, daily average 30-year fixed mortgage rates sit at 6.55% – a five-month low and continued improvement from last week. A shrinking economy, tariffs, inflation and recession anxieties, and an ailing stock market are all pushing rates lower. Economic weakness tends to push bond values higher, which in turn lowers mortgage rates.
Redfin predicts that mortgage rates will hover between 6-7% this year.
“Even though mortgage rates have dropped, buyers should expect rates to remain volatile for the foreseeable future,” cautioned Chen Zhao, Head of Economics Research at Redfin. “That being said, the lower rates will be a welcome reprieve for homebuyers during this time of economic uncertainty.”
Mortgage rates are important for buyers because they directly translate to monthly housing costs. The higher the rate, the more you pay every month; if rates drop, you can save tens of thousands over the lifetime of your mortgage. Let’s see how your monthly payments change with different rates, using data from our Mortgage Calculator.
| Mortgage rate | Monthly costs | Lifetime costs |
| 7.0% | $2,881 | $1,037,160 |
| 6.75% | $2,825 | $1,017,000 |
| 6.55% (current rate) | $2,779 | $1,000,440 |
| 6.25% | $2,712 | $976,320 |
| 6.0% | $2,657 | $956,520 |
Housing costs for a 30-year fixed mortgage, assuming a 20% downpayment on a median-priced house ($426,000). Costs include insurance and taxes. Lifetime costs assume 360 equal monthly payments. Updated 4/4/25
Housing market: Buyers are gaining the upper hand
The number of homes for sale is rising in many markets, giving buyers more options and an upper hand in negotiation. Trends vary by market, though, and home sales are still down. In general, hardly any homes are changing hands.
Let’s dive a bit deeper into the data and look at two key market indicators.
Supply is rising
Housing supply sits at 3.5 months, about where it was for most of 2024. Supply under 4 months tends to favor sellers; supply above 4 months often favors buyers. While inventory has improved from its 2021 low of 1 month, much of the increase comes from unsold homes, not new construction. Homebuilding has actually slowed as inventory keeps piling up.
Supply is also rising because more sellers are listing their homes, with some of the largest increases in disaster-prone areas like Florida. This has led to homes sitting on the market for longer. For example, in February, the typical home was on the market for 54 days – the longest period for any February since 2020.
Buyers looking to take advantage of this supply bump may be in a better position to negotiate for concessions.
Here are the states that most favor homebuyers, according to time on market and supply.
| Rank | State | Days on market | Months of supply |
| 1 | Hawaii | 98 days | 8.4 months |
| 2 | Montana | 114 days | 6.1 months |
| 3 | Florida | 75 days | 7.2 months |
| 4 | South Dakota | 93 days | 5.3 months |
| 5 | Vermont | 94 days | 4.7 months |
As of February 2025. Top five states with the combined highest days on market and months of supply. Updated 4/4/25
Demand is growing
Buyers are eager to enter the market. More people are searching for homes and applying for mortgages, hoping to take advantage of lower mortgage rates. That demand hasn’t led to a big jump in overall sales yet, but well-priced homes in good condition are selling quickly. New home sales are also on the rise.
However, even with rising inventory, there still aren’t enough homes on the market to meet demand, which is why prices keep rising. For buyers who have the budget, this could be a good time to enter the market, as mortgage rates have dipped and some sellers may be more open to negotiation.
>> Read: How to Sell Your House in 2025: A Comprehensive Guide
Economy: Inflation could come back
Critical to the housing market, the Fed and economists are concerned about inflation coming back, which could impact mortgage rates. Plus, following a recent inflation report and tariffs announcement, they fear that “stagflation” – a combination of slow growth and rising inflation – could set in. Stagflation tends to lead to higher prices and a weaker economy.
Inflation has major implications for buyers. Most importantly, it can lead to higher house prices and mortgage rates, and stretch budgets further. If inflation does tick back up, borrowing could get more expensive, making now a smart time to lock in a rate before that happens.
All-cash buyers hoping to avoid mortgages altogether should act now to avoid potential price increases.
>> Read: A Housing Market Under Donald Trump: What It Could Mean for Buyers, Sellers, and Renters
Personal considerations: Are you ready to buy and own a house?
When deciding whether to buy a home in today’s climate, you’ll want to think beyond market conditions and focus on your individual circumstances. Here are some personal considerations to keep in mind.
Financial health
Take stock of your current savings, credit score, and debt levels. Can you afford a house? Or does renting make more sense?
Housing is a long-term commitment, so you’ll want a solid emergency fund – ideally covering 3 to 6 months of expenses – for maintenance and unexpected costs.
Monthly budget
Determine how a mortgage payment at today’s rates might impact your lifestyle. Make sure you can comfortably handle monthly payments, property taxes, insurance, and other homeownership expenses.
Job and location stability
Buying a house makes sense if you plan to stay put for several years. A stable job or reliable income is crucial to avoid financial strain, especially if home prices or interest rates rise further.
Choosing your location is also essential. Is your potential home prone to flooding, wildfires, or other climate risks? This is especially important today, as insurers continue dropping homeowners at alarming rates.
Personal goals and timelines
Think about life events, like starting a family, retiring, or relocating. These factors can make owning a home either more appealing or potentially riskier if you need to move soon.
Lifestyle preferences
Homeownership comes with ongoing responsibilities, like maintenance, repairs, and property taxes. Ask yourself if you have the time, resources, and a desire to handle them.
>> Read: Am I Ready to Buy a House? 8 Questions to Help You Decide
So, is now a good time to buy a house?
If you have the means and are ready to own a home, now is a good time to buy a house. Rates are falling fast, but they may not remain low for long. Waiting for rates to drop further leaves you at risk of increased competition among buyers and subsequent price hikes from sellers.
That said, today’s housing market has been topsy-turvy since the pandemic. Low inventory and high prices have created a strange mix: Some homes are flying off the market, while others sit for weeks. And despite relatively high mortgage rates, prices have kept climbing in many areas. This doesn’t even take into account potential policy changes.
In a market this unpredictable, the best approach is to be prepared. Know your budget, get preapproved, and move quickly if the right home comes along.
Final thoughts
If you’re in the market for a house and have been scared off by high rates, now is the time to connect with an agent and start your home search. Rates will likely hover between 6%-7% through 2025, and buyers are getting restless, helping the market gain momentum. The longer you wait, the more competition you’ll see.