Thinking about buying or selling a home in 2025? Here are a few basics to help guide you through some confusion and media myths. 

NOW IS NOT A BAD TIME TO BUY 

Yes, the market still favors sellers. But it’s not the super-charged sellers’ market it used to be. The housing cycle is shifting toward one that is more friendly to buyers.  

One of the first realities is don’t get spooked over the asking price. Close to 70% of the homes sold last month were below the asking price. The average sale was discounted almost $20,000 before it closed. Sure, there were some sales – 56 of them last month – that sold over the list price, but they have become the exception, not the rule.  

There is a lot of talk about the surge of new homes in some stage of development. But so far, there hasn’t been a surge of building permits. According to the Census Bureau, there were 2,557 residential building permits issued in 2024. That’s 19 more than there were in 2023. And not all of them were for single-family homes. Duplexes and apartments are included in that total. 

 The number of permits is increasing, and there’s a lot of new projects planned, but don’t look for the market to be flooded with new homes this year.  

YOU DO NOT NEED A 20% DOWN PAYMENT 

Down payments vary. Twenty percent is cited because it’s the cutoff for private mortgage insurance (PMI) which adds to the monthly mortgage payment. There are programs to help reduce or eliminate the down payment. Spend some time researching what state and federal programs offer that help. 

BUYING A HOME DOES NOT HAVE TO EQUAL HEAVY DEBT 

If you focus on the debt total, it can be overwhelming. But not all debt is bad. Make sure you can afford your monthly payment without putting yourself in a “house-poor” situation. Experts suggest that the ideal amount for housing is 25% to 30% of an individual’s or a family’s income.  

Take into consideration all your monthly expenses, not just the ones you report to the lender on the application. In the months you have a little extra money, you can add it to your mortgage payment and cut the life of the mortgage significantly over time and that monthly mortgage payment gains buyers equity in the home. Equity is a financial asset the buyer can use to pay off debt, use for a down payment on a step-up home purchase, or even buy a second home.  

WORK WITH A PRO 

Pros of navigating the real estate market have a powerful asset in their corner. They are partnered with a professional. For those who don’t have that partner, consider this. If you have a legal or medical issue, you don’t settle for just any lawyer or doctor. You want the best you can get. Employ the same logic for a real estate partner.  

After you’ve interviewed several local Realtors® and chosen one, spend some time developing a solid relationship with your realtor. What type of property are you looking for? How much can you afford? What are the deal breakers? How do you want to communicate – in person, by phone, by text, or by email? Once you’ve done that, stay with him or her. Consistency and a strong personal working relationship yield better results than shopping agents.