Is Now a Good Time to Buy a House?

Key takeaways:

• If you have the means, now may be a good time to buy a house.
• It’s a buyer’s market – there are nearly 500,000 more home sellers than buyers – but a shaky economy has everyone on edge.
• Mortgage rates have reached 3-month lows, but they will likely remain volatile due to economic uncertainty.
• House prices keep rising: The median U.S. home sale price sits at a near-record high $442,000, marking 23 straight months of year-over-year gains.

Spring is over, marking the end of the traditional homebuying season. But given how slow the season was, many homebuyers are wondering if it’s a good time to enter the housing market.

Housing remains largely unaffordable for most of the country, after all, and economic uncertainty is keeping everyone on the sidelines. While prices may drop soon, buyers and sellers are still unwilling to spend big. So, it’s no surprise that many are questioning 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 a good time to buy, if you can afford it. Prices keep climbing, but there is also significantly more inventory, giving buyers an upper hand in negotiation. A volatile economy is making everyone uneasy, though. Buyers serious about making offers should consult a local agent and be confident in their finances and future income.” – Daryl Fairweather, Redfin Chief Economist.

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 are high but could fall soon

The median U.S. sale price is $442,000 – up 0.9% from a year ago. House prices have posted year-over-year gains for 23 consecutive months and are 33% higher than they were in 2020. Monthly housing costs have sat in record territory for months.

Years of underbuilding and subsequent low inventory have been the primary drivers behind these record prices. 

However, price growth has slowed recently due to rising inventory and falling home sales. Now, Redfin predicts that these trends will push house prices down by the end of the year – the first drop since 2023. This will make homebuying more affordable, because wages are expected to rise.

If you’re planning to buy, moving soon could help you take advantage of lower competition.

>> Read: Redfin’s 2025 Housing Market Predictions

Mortgage rates are elevated and volatile

As of July 1st, daily average 30-year fixed mortgage rates sit at 6.67% – well below last week’s rate. But zooming out, mortgage rates are still relatively high due to persistent inflation, an uneasy economy, and stronger-than-expected job market. 

“Tariff uncertainty and economic unease means buyers should expect mortgage rates to remain volatile for the foreseeable future,” cautioned Chen Zhao, Head of Economics Research at Redfin. “Unless all tariffs since inauguration day are called off, or inflation doesn’t materialize, rates are unlikely to fall. That being said, even small dips will be a welcome break for homebuyers.”

Redfin predicts that mortgage rates will hover between 6-7% this year.

How mortgage rates affect housing costs

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.

Buyers have the upper hand

It’s a buyer’s market for the first time in years: Housing inventory is rising across the country – especially in the South – giving buyers more negotiating power. However, supply is still very low in parts of the Midwest and East Coast, putting sellers in charge and pushing up prices. 

In general, high costs are keeping buyers on the sidelines and freezing home sales. Let’s dive a bit deeper into the data and look at two key indicators. 

Inventory is at a five-year high 

There are more homes for sale in the U.S. today than there have been since the start of the pandemic – nearly $700 billion worth. Florida and Texas have the most homes on the market today, by far. This is the primary driver behind today’s buyer’s market. 

Housing inventory is rising because more sellers are listing their homes than buyers are buying them, with some of the largest increases in disaster-prone areas like Florida. In fact, local Florida experts believe a market correction – where home prices fall to better reflect local incomes and demand – could be in store. 

Rising inventory is the primary driver behind today’s buyer’s market. Buyers who can afford this market may be in a better position to receive concessions. However, some sellers are now holding off because they’re realizing they can’t sell for as much, which may impact the market in the future.

Demand is near an all-time low

Even with more homes on the market, buyer demand remains sluggish due to high housing costs and economic uncertainty – especially in markets like Austin and Tampa. For buyers who have the budget, this could be a good time to enter the market, as sellers may be more open to negotiation. 

Still, there are exceptions. In some Midwest cities like Milwaukee and Detroit, strong demand for affordable homes is pushing prices up and putting sellers in charge.

>> Read: How to Sell Your House in 2025: A Comprehensive Guide

Inflation could rise

Critical to the housing market, the Fed and economists are concerned that inflation could rise, which would impact mortgage rates. Plus, due to the evolving tariff situation, they fear that “stagflation” – a combination of slow growth and rising inflation – could set in.

There is growing uncertainty around how much tariffs will affect inflation, with a few economists beginning to believe it may not end up playing a large role. Still, most experts believe that tariffs will raise prices on nearly all goods.

Inflation has major implications for buyers. Most importantly, it can lead to higher house prices and mortgage rates, and stretch budgets further. So, 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

How to buy in an uncertain economy

With tariffs, economic whiplash, and volatile mortgage rates, many buyers are wary of getting into the market. Here are a few tips from our economists about navigating this shifting landscape. 

• Stick to your budget: This isn’t the time to stretch financially. With recession odds hovering around 50% and economic uncertainty rising, make sure you have enough in savings to cover mortgage payments if your income changes.
• Negotiate, negotiate: The market favors buyers, so use your leverage. There’s more inventory, and sale prices are increasingly coming in below asking.
• Be smart about rates: Mortgage rates are unpredictable. Shop around, compare lenders, and ask about “float down” options if rates drop significantly after you lock in. You can always refinance later if needed.
• Sell before you buy: If you own a home, consider selling it first. It will give you a clearer budget and help you avoid the risk of carrying two mortgages.

>> Read: How to Buy, Sell or Rent a Home Amid Economic Uncertainty

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 trending down, but with today’s economy, it’s hard to know how long they’ll stay that way. Waiting for rates to drop leaves you at risk of competition among buyers and subsequent price hikes from sellers. 

In a market this unpredictable, the best approach is to be prepared. Know your budget, connect with an agent, get preapproved, save big with Rocket Mortgage, and move quickly if the right home comes along. The longer you wait, the more competition you’ll see – especially if prices fall by the end of the year.