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Housing Market is Shifting to Become Buyer-Friendly in Mid-2025

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Remember those crazy days, just a few years ago, when trying to buy a house felt like competing in the Olympics? Bidding wars, sky-high prices, and barely any time to even think before making a huge offer. Well, things are changing, and as we move through 2025, it's becoming clear that the housing market is becoming buyer-friendly. For the first time in what feels like ages, the scales are starting to tip in favor of those looking to purchase a home, and there are several key reasons why.

Housing Market is Shifting to Become Buyer-Friendly in Mid-2025

As someone who's been watching the real estate scene for quite some time now, I can tell you this shift is significant. It's not just a minor adjustment; it's a noticeable easing of the intense pressure buyers have been under. Let's dig into the data and understand why this change is happening and what it means for you if you're in the market to buy a home.

More Choices Than Ever: Inventory on the Rise

One of the most significant indicators of a buyer-friendly market is the number of homes available for sale. For what seems like an eternity, the supply of houses couldn't keep up with the demand. This scarcity drove prices up and left buyers with very few options. However, I'm seeing a welcome change in this regard. Recent data from Realtor.com in June 2025 highlights a crucial milestone: for the first time since late 2019, there are over a million active listings on the market.

Think about that for a moment. More than a million homes across the country available for buyers to consider. This surge in inventory is a game-changer. It means buyers have more power to negotiate, more time to make decisions, and a wider range of properties to choose from. I believe this increase is partly due to more homeowners feeling comfortable listing their properties as the frantic pace of the pandemic-era market has cooled down, and also due to the efforts of homebuilders finally catching up with some of the pent-up demand.

Mortgage Rates Take a Breath: A Sigh of Relief for Buyers

Another crucial factor influencing the housing market is mortgage rates. We all know how sensitive the housing market is to these rates. Even small fluctuations can significantly impact a buyer's purchasing power and monthly payments. While rates in June 2025, hovering in the upper 6% range for a 30-year fixed loan, are still higher than the rock-bottom rates we saw a few years ago, the fact that they dipped for the first time in a month is noteworthy. Furthermore, these rates are lower than they were at the same time last year.

This slight easing in mortgage rates can provide some much-needed breathing room for potential homebuyers. It can translate to slightly lower monthly payments, making homeownership more accessible for some. While I don't expect rates to plummet overnight, this downward trend, even if modest, is a positive sign for buyers. It suggests that the intense upward pressure on borrowing costs might be starting to subside.

Prices Stabilize: The End of Runaway Appreciation?

For years, it felt like home prices were on an unstoppable upward trajectory. It was a constant worry for aspiring homeowners wondering if they'd ever be able to afford a place of their own. But the data from May 2025 indicates a significant shift: home prices were roughly flat. This doesn't necessarily mean prices are falling dramatically across the board, but it does signal a cooling off of the rapid price appreciation we've witnessed.

This price stabilization is a direct consequence of the increased inventory. With more homes on the market, sellers are finding it harder to command exorbitant prices. Buyers now have more leverage to negotiate, and we're even seeing a growing number of price cuts. In fact, in May 2025, 19.1% of listings reported price cuts, the highest share for any May since at least July 2016. This trend of increasing price reductions for five consecutive months further solidifies the shift towards a more buyer-friendly environment.

Time is on Your Side: Homes Taking Longer to Sell

Remember when homes would get multiple offers within hours of being listed? Those days seem to be fading, at least for now. The data shows that in May 2025, homes spent a median of 51 days on the market, which is six more days than a year ago. While still relatively fast compared to historical norms, this increase in the time homes stay on the market indicates a significant power shift.

Buyers now have more time to consider their options, conduct thorough inspections, and negotiate terms without the intense pressure of immediate competition. This extra time can be invaluable in making such a significant financial decision. It allows for more thoughtful consideration and reduces the risk of buyers feeling rushed into a purchase they might later regret.

Pending Home Sales Reflect Shifting Dynamics

While the overall picture points towards a buyer-friendly market, the dip in pending home sales (homes under contract), which fell by 2.5% compared with last year, is worth noting. This suggests that despite the increased inventory and stabilizing prices, the earlier rise in mortgage rates might have still had a lingering effect on buyer demand. It's a reminder that the housing market is complex and influenced by various factors.

However, I interpret this not as a sign that the market is swinging back towards sellers, but rather as a natural recalibration. Buyers are being more cautious and deliberate in their decisions, which is understandable given the recent volatility in interest rates.

Regional Differences Matter: Not All Markets Are Created Equal

It's crucial to remember that the national housing market is an aggregate of many local markets, and conditions can vary significantly from one region to another. As the Realtor.com report points out, not every housing market is equally well-supplied. Factors like recent construction trends play a significant role in the availability of homes in different areas.

For instance, areas that have seen significant new construction are likely to have a more pronounced increase in inventory compared to areas with limited new building activity. Therefore, if you're looking to buy, it's essential to focus on the specific conditions in your target location. Talk to local real estate agents and do your research to understand the dynamics at play in your desired area.

International Interest: A Subtle Influence

The Realtor.com International Demand Report offers another interesting perspective, showing a slight growth in the share of international shoppers in the first quarter of 2025. While this might not be a primary driver of the overall market shift, it does indicate continued interest in the U.S. housing market from overseas buyers, particularly in coastal magnets and increasingly in Texas markets.

However, the report also noted a drop in interest from potential Canadian homebuyers, likely due to recent trade and other policies. This highlights how global economic and political factors can also have a subtle impact on the U.S. housing market.

The Future Looks Brighter for Buyers

Based on the data and my observations, the trend towards a housing market becoming buyer friendly in 2025 seems firmly in place. The combination of increased inventory, stabilizing prices, slightly easing mortgage rates, and more time for buyers to make decisions creates a more balanced and favorable environment for those looking to purchase a home.

While the market is still dynamic and subject to change, the current conditions offer a welcome respite from the intense competition and affordability challenges of recent years. If you've been on the sidelines, waiting for the right time to buy, now might be the moment to seriously consider your options.

In conclusion, the housing market in 2025 has indeed become more buyer friendly due to a rise in available homes, a slight dip in mortgage rates, flattening prices, and houses taking longer to sell, offering buyers more choices and negotiating power.

Capitalize on Buyer-Friendly Conditions

The real estate market is shifting in favor of buyers this year, offering more choices, price flexibility, and less competition.

Norada helps you take full advantage of these buyer-friendly conditions by connecting you with high-potential properties in stable, growth-oriented markets.

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Talk to a Norada investment counselor today (No Obligation):

(800) 611-3060

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Best Places to Buy a House in 2025: Up-and-Coming Markets

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If you're looking for the best places to buy a house in 2025, you're probably thinking about a mix of affordability, growth potential, and maybe a cool vibe. Based on what I’m seeing, the sweet spots seem to be in those up-and-coming cities that aren’t already mega-expensive. I'm talking about places where you can still get a good deal, where the job market is solid, and the community feels vibrant. Places like Madison, Wisconsin, and Colorado Springs, Colorado are turning heads, but trust me, there are many more hidden gems out there. Let's explore what makes them so appealing.

Best Places to Buy a House in 2025: Up-and-Coming Cities

Why 2025 Could Be Your Year for Homeownership

I know the last few years have felt like a rollercoaster for the housing market, but things are starting to shift. Experts are predicting that mortgage rates may start to come down in 2025, which is fantastic news for anyone looking to buy a home. When interest rates are lower, your monthly payments are more manageable, and suddenly, homeownership feels within reach.

Plus, with all the buzz around which markets will do well in 2025, if you make your move at the right time, you’re not just buying a house – you're making a smart investment. Imagine the feeling of getting into a place before it blows up in popularity, knowing that the value is likely to increase. That’s the kind of opportunity I’m talking about, so let’s see where those opportunities might be hiding.

Up-and-Coming Cities: The Next Big Thing for Homebuyers

Forget about the big, established cities that are bursting at the seams and cost a fortune. There's a trend happening with folks like us exploring places that offer a better balance of price, growth potential, and quality of life. Think of these places as secondary cities – the kind that have been quietly growing, building their own identities, and now, getting ready to shine. Here's why these cities are starting to catch people's attention:

  • More Affordable: Let's be honest – your money goes a lot further in these smaller cities. That means you can potentially get a bigger home, a better location, or just generally have a more comfortable financial situation.
  • Job Opportunities: Many of these cities are anchored by big universities, which bring in talent, innovation, and good-paying jobs. It’s not just about the college, though. Industries are growing in these areas, creating all kinds of work opportunities.
  • Younger Populations: The vibe in these up-and-coming cities tends to be a little younger and more energetic. You’ll see more creative businesses, a lively social scene, and a real sense of community.
  • Walkable and Bikeable: I love a city where you can get around easily without a car. Many of these cities are focusing on creating walkable and bikeable neighborhoods, making it easier to enjoy everything they have to offer.

Let’s look at some of the top contenders.

Top 20 Up-and-Coming Housing Markets for 2025

Here's a look at the top 20 up-and-coming cities, based on a report by Clever Real Estate. Keep in mind, these rankings are based on various factors, including housing prices, age, income, education, and more.

Rank City Median Age Median Household Income Typical Home Price Home-Price-to-Income Ratio Home Value Change (Last 12 Months) Home Value Change (Last 5 Years) Home Value Projection (Next 12 Months) % Adults with Bachelor's Degree Walk Score Bike Score Unemployment Rate
1 Madison, WI 37 $82,132 $410,758 5 5.45% 46.01% 0.2% 49.2% 50 66 2.1%
2 Fargo, ND 33 $72,889 $301,802 4.1 2.09% 23.76% -2.6% 42.9% 45 49 2.3%
3 Lincoln, NE 35 $71,163 $285,609 4 1.60% 40.78% -0.2% 42.0% 44 59 2.6%
4 Provo, UT 26 $100,791 $526,689 5.2 0.79% 48.06% -0.2% 45.4% 45 63 4%
5 New Haven, CT 41 $80,733 $371,447 4.6 8.03% 63.64% 3% 42.4% 68 66 3.3%
6 Omaha, NE 37 $81,376 $286,917 3.5 2.52% 47.80% 0.4% 40.1% 48 42 2.9%
7 Ann Arbor, MI 36 $83,754 $401,888 4.8 3.30% 29.40% -1.5% 60.2% 52 71 4.2%
8 Fayetteville, AR 35 $77,695 $341,267 4.4 3.47% 66.85% 2.8% 36.6% 32 50 2.6%
9 Portland, ME 44 $92,117 $517,768 5.6 3.81% 66.23% 3% 48% 62 68 2.2%
10 Hartford, CT 41 $92,176 $364,106 4 8.51% 58.39% 2.5% 42.5% 67 54 3.5%
11 Savannah, GA 37 $75,196 $340,561 4.5 6.37% 68.24% 2.8% 37.2% 44 52 3.8%
12 Gainesville, FL 35 $59,290 $303,193 5.1 2.07% 53.22% 0.9% 43.3% 37 69 3.9%
13 Boulder, CO 38 $95,363 $727,478 7.6 -0.03% 34.86% -1.9% 65.4% 56 86 4.1%
14 Des Moines, IA 37 $82,728 $281,118 3.4 2.97% 34.45% -1.2% 39.8% 45 39 3.4%
15 Ogden, UT 33 $100,461 $493,061 4.9 1.73% 55.38% 1.2% 35.3% 44 44 3.7%
16 Fort Collins, CO 37 $88,182 $551,486 6.3 1.22% 34.52% -1.5% 52.9% 37 78 3.9%
17 Manchester, NH 41 $103,727 $483,913 4.7 6.92% 64.87% 2.9% 42.8% 51 42 3%
18 College Station, TX 29 $54,680 $299,406 5.5 1.12% 33.26% -1.5% 39.7% 34 62 3.6%
19 Bridgeport, CT 41 $111,058 $624,506 5.6 7.19% 53.09% 1.4% 51.9% 66 49 3.6%
20 Lansing, MI 36 $70,007 $231,338 3.3 5.59% 43.71% 0.3% 37.9% 46 55 4.4%
  • Madison, WI: Topping the list, Madison has it all – a low unemployment rate, an educated population, and a vibrant culture. It's a college town, which means there's always something going on, but it still manages to feel like a real community.
  • Fargo, ND: Fargo is turning heads with its high affordability and strong job market. It's a place where you can buy a house without feeling like you're stretching yourself too thin.
  • Lincoln, NE: Another Midwestern gem, Lincoln shines with its low cost of living. If you're looking for a place where your money goes a long way, Lincoln should definitely be on your radar.
  • Provo, UT: Provo stands out with its high salaries and outdoor scene. If you love hiking, biking, and generally being outside, Provo could be a perfect fit.
  • New Haven, CT: New Haven offers a unique mix of arts and intellect. Home to Yale University, it’s a place where you'll find a lot of creative energy and a real focus on education.

The Hottest Housing Markets for 2025: Where the Action Is

While those up-and-coming cities are a great choice for first-time homebuyers, there are also some larger markets that are expected to be particularly hot in 2025. Realtor.com released a report outlining the markets with the highest projected growth, considering both sales and price increases. These are areas where the market will likely be particularly competitive and where you might see bigger price gains.

Rank Metro Area Combined 2025 Existing Home Sales and Price Growth 2025 Existing Home Sale Counts Year-over-Year 2025 Existing Home Sale Counts vs 2017-2019 Average 2025 Existing Home Median Sale Price Year-over-Year 2025 Existing Home Median Sale Price vs 2017-2019 Average
1 Colorado Springs, CO 39.8% 27.1% -5.6% 12.7% 88.9%
2 Miami 33.0% 24.0% -0.7% 9.0% 100.5%
3 Virginia Beach, VA 29.9% 23.4% 24.5% 6.6% 57.3%
4 El Paso, TX 27.8% 19.3% 1.3% 8.4% 71.1%
5 Richmond, VA 27.6% 21.6% 31.7% 6.1% 68.8%
6 Orlando, FL 27.3% 15.2% 32.1% 12.1% 82.6%
7 McAllen, TX 26.8% 19.8% 18.4% 7.0% 47.5%
8 Phoenix 25.5% 12.2% 19.1% 13.2% 76.1%
9 Atlanta, GA 25.3% 15.1% -7.7% 10.2% 51.9%
10 Greensboro, NC 25.0% 17.3% 11.0% 7.7% 51.6%
11 Tucson, AZ 24.8% 12.5% 0.1% 12.4% 40.3%
12 Austin, TX 24.7% 14.5% -7.4% 10.2% 89.1%
13 Durham, NC 24.2% 14.1% -7.8% 10.1% 102.0%
14 Charlotte, NC-SC 24.1% 15.7% -11.2% 8.4% 92.6%
15 Little Rock, AR 23.4% 18.6% 7.3% 4.8% 49.6%
16 Jacksonville, FL 23.3% 13.5% 7.6% 9.8% 69.6%
17 Cape Coral, FL 22.8% 13.2% 5.7% 9.6% 64.2%
18 Washington, DC 22.0% 17.0% -7.9% 5.0% 94.1%
19 Harrisburg, PA 21.9% 16.8% -15.5% 5.1% 64.3%
20 Denver 21.6% 13.6% 6.9% 8.0% 89.3%
  • Colorado Springs, CO: This city tops the list with its combined sales and price growth. If you’re looking for a market that will likely continue to grow, Colorado Springs should be high on your list.
  • Miami, FL: Miami is always a popular destination. It's seeing significant growth in sales and prices, driven by its warm climate, diverse culture, and thriving economy.
  • Virginia Beach, VA: With strong growth in both sales and prices, Virginia Beach is gaining a lot of attention from people looking for coastal living that's a bit more affordable than other East Coast options.
  • El Paso, TX: El Paso is experiencing a nice boom. Its unique culture and relatively affordable housing market are making it an attractive option.
  • Richmond, VA: Richmond has seen some nice resurgence recently. It is an up-and-coming city with a solid job market, historic charm, and a growing food scene.

My Personal Take: What Makes a City Truly Great for Buying

I've been watching housing markets for years, and I’ve noticed that beyond the numbers, there are certain qualities that make a city truly great for buying a home. It's about more than just affordability and growth. Here's what I look for:

  • Community Feel: I want a place that feels welcoming, where neighbors know each other, and there are plenty of opportunities to connect with others.
  • Local Culture: The best places are those with a strong local culture, whether that’s art, music, food, or just a unique neighborhood vibe.
  • Walkability and Green Spaces: I think it’s important to be able to get around without a car and have access to parks and green spaces for those days you want to get outside.
  • Growth Opportunities: Beyond just home values going up, I’m looking for a place with a diverse job market, solid education system, and real room to grow.
  • Authenticity: I'm wary of places that feel overly manufactured. I prefer a location that has retained its own character and isn’t trying to be something it’s not.

Tips for Homebuyers in 2025

If you’re planning to buy a home in 2025, you'll want to be prepared. Here are some key things to keep in mind:

  1. Get Pre-Approved for a Mortgage: This is absolutely essential. Knowing how much you can borrow will help you focus your search, and it also shows sellers that you’re a serious buyer.
  2. Shop Around for the Best Mortgage Rates: Don't just go with the first offer you get. Look at different lenders to make sure you’re getting the best deal. Even a small difference in interest rates can make a big impact on your monthly payments.
  3. Be Ready to Negotiate: The housing market is expected to pick up in 2025, so you might need to be prepared to negotiate. Having a good real estate agent can make a big difference in this process.
  4. Don’t Rush the Decision: I know it can be tempting to jump at the first place you see, especially if you feel some pressure. But take your time, weigh your options, and make sure you’re making the right choice for you and your family.
  5. Look Beyond the Obvious: Don’t let yourself get too caught up in the hype of the top-ranked cities. There could be more opportunity just outside of them, or even in a market you may have never considered.
  6. Be Patient: Remember that this is a process, and it might take time. Don’t get discouraged if things don't happen immediately. Keep looking, keep learning, and eventually, you’ll find the perfect place to call home.

Final Thoughts

Buying a house is a big deal, and it's important to do your research and plan ahead. The data suggests that 2025 could be a good year for homebuyers, especially in those up-and-coming cities and hot markets. It’s not just about finding the right house; it’s about finding the right place for you. With a bit of planning, a good sense of what you want, and a little help from the experts, I truly believe you can find your dream home in 2025.

Analyze Your Market Using the MAD Method

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There are many complicated ways to analyze the market conditions in your local area, enough to confuse and boggle the novice investor’s mind.  However, you can keep things simple by using our “MAD” method.  This means paying attention to three important factors and noting whether they’re going up or down:

M — Median housing prices

A — Active listings on the market

D — Days on the market

By paying attention to these three simple factors, you’ll get a good snapshot of the state of your local market.

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