If you’ve been keeping an eye on the housing market, you’ve likely heard everyone saying: “Interest rates are high!” “Tariffs are pushing up material costs!” For many potential homeowners, it might feel like the worst time to buy. But, let’s take a breath and look at the full picture—because 2025 might actually be a smarter time to buy than you think. Seller concessions, different financing options and REALTORS who want to help will get you there!
1. Rent Isn’t Getting Any Cheaper
Rents have continued to climb in many cities. You’re likely paying a premium for the flexibility of renting. Meanwhile, you do not build any equity. When you buy, you’re investing in your future. Every mortgage payment chips away at the balance and builds your ownership. While renting does have benefits that may suit some, home ownership poses a much better option for most!
*additionally, you could add a note renewal increases to rental rates, especially if you originally move- in on a concession or “special” and the potential added moving costs of moving more often with renting vs buying.
2. Home Prices Are Holding Steady (or Even Dropping Slightly)
While high interest rates have slowed down buyer activity, they’ve also helped cool off the once red-hot housing market. This gives you an edge: less competition and more room to negotiate. In many markets, sellers are more open to concessions like rate buydowns, closing cost coverage, or price reductions. Which is a big step for buyers! We have 4,700 properties on the MLS right now. Trust me buyers, there are options out there!
I helped my previous client secure 10,000 in seller-paid concessions. This assisted them with their down-payment and closing costs. As well as new HVAC and water heater.
3. Tariffs May Be High, But You’re Not Building from Scratch
Yes, tariffs on construction materials are making new builds more expensive. But, you don’t have to buy a build/custom home. Buying an existing home means you avoid many of those increased material costs while still gaining an appreciating asset. I always say, the older homes hold the good bones. Newer build homes won’t appreciate in value as much as an older home in an established neighborhood would.
4. Marry the Home, Date the Rate
This real estate mantra still holds true in 2025. You can lock in a home you love now and refinance when rates drop. Owning the right home in the right location is a long-term play. Interest rates fluctuate, but your home—if chosen wisely—will grow in value over time. You can refinance as soon as the rates drop, but you need a good loan officer to back you up on this. Someone who will keep in touch with you and let you know the best time!
5. Creative Financing Options Are Everywhere
Lenders have gotten more creative. Adjustable-rate mortgages, 2-1 buydowns, seller incentives, and community lending programs can soften the blow of higher interest rates. With the right lender and real estate agent on your team, you can structure a deal that works for you.
6. It’s Still About Your Life
At the end of the day, buying a home isn’t just a financial decision, it’s a personal one. Maybe your family is growing, maybe you’re ready to settle into a neighborhood, maybe you just want something that’s yours. If you’re financially stable and ready, waiting for a “perfect” time might just cost you more in the long run. Just remember, save up as much as you can. Ask all the questions to your experienced Realtor and loan officer!
Reach out today, if you are ready to learn more! ❤
Bottom Line: High interest rates and tariffs shouldn’t automatically take homeownership off your radar. With the right guidance, planning, and mindset, 2025 can still be the year you buy a home and build a foundation for your future.
Want to explore what’s possible? I’m happy to help you run the numbers, explore neighborhoods, or talk through what buying looks like for you in today’s market.
Allison Carlson
Better Homes and Gardens Real Estate – Palmetto
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