What Homebuyers Want Most in 2025—And How the Market Is Responding

In today’s ever-evolving real estate landscape, it’s clear what’s top of mind for most homebuyers: affordability. According to a recent survey from Bank of America, potential buyers say that improving home prices and mortgage rates would give them more confidence to make a move. And while the economy still feels uncertain to many, the housing market is starting to shift in ways that could offer some relief.

Let’s take a closer look at the two biggest concerns for today’s buyers—and how current trends may open a new window of opportunity.

** 1. Home Prices Are Moderating

Over the past few years, we saw an unprecedented surge in home values. From 2020 to 2021 alone, prices spiked by nearly 20%. But in 2025, things look very different. Nationally, price increases have slowed to a more sustainable, single-digit pace—much closer to historical norms.

This moderation is key for buyers. Slower price growth not only makes homes more accessible, it also removes some of the pressure and urgency that defined the pandemic housing boom. While local trends can still vary—some areas may see slight declines while others continue to appreciate—buyers now have more time and clarity to plan their purchase.

** 2. Mortgage Rates Are Easing

Rates aren’t back to the historic lows of 2020–2021, but they have come down from recent highs. This is great news for affordability.

Even a small dip in mortgage rates can significantly reduce monthly payments and long-term interest costs. Experts expect rates to remain in the low to mid-6% range for the foreseeable future—far more manageable than the 7%+ rates seen in 2023. And while some volatility is expected, the overall trajectory looks more favorable than it did just months ago.

As Lisa Sturtevant, Chief Economist at Bright MLS, notes:

“Slower price growth coupled with a slight drop in mortgage rates will improve affordability and create a window for some buyers to get into the market.”

** What It Means for Buyers in 2025

We’re not out of the woods yet when it comes to affordability challenges, but the market is clearly shifting. And for buyers who felt priced out earlier this year—or even in years past—this could be a great time to revisit their plans.

• Less aggressive price growth means homes aren’t appreciating as rapidly, giving buyers more negotiating power and budgeting stability.
• More favorable interest rates could improve loan options and reduce monthly costs.

If you’ve been waiting on the sidelines, now is a great time to explore your local market, assess what’s available, and run the numbers again. You might be surprised at what’s possible.

Bottom Line

Home prices are stabilizing. Mortgage rates are trending down. And while affordability isn’t perfect, the housing market is more balanced than it’s been in a long time. If you’re thinking about buying in 2025, now is the time to connect with a trusted real estate agent who can help you navigate your options and take advantage of the market’s momentum.

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