These are unusual times in U.S. politics and the economy. And unusual times can translate into unusual profits, or losses, depending on what you do with your money. Whether you’re looking to buy property for yourself or as a real estate investment, is now the time to do it or should you wait until the fall?
Home Prices
House prices have been on the upswing in the spring of 2025. New York City saw a 7.7% annual gain in January 2025, with similar increases in Chicago and Boston. If that continues, you might do well to buy sooner than to wait.
Mortgage Rates
By late March 2025, mortgage rates have dropped below 7% and stabilized there. Falling stock prices and a weaker job market are contributing factors. It’s possible there will be slight decreases later in the year, but if the house is right and your budget can handle it, it may not be worth it to you to wait for a 0.5% decrease in the interest rate. Do the math and see what works for you.
Inventory Levels
Housing inventory has reached the highest level of anytime in the past five years. It’s a buyer’s market, with a lot of options for you to walk if a seller doesn’t meet your terms. That suggests that you can jump into the market soon and keep shopping until you get exactly the property and the deal you want rather than waiting until the fall.
Market Activity
May and June are two of the strongest months for home sales. By fall there is less competition among buyers, so you might be able to get a better price. It’s a double-edged sword, though, because by fall your choices might be more limited, with all the good ones snatched up in the spring and summer.
Personal Factors
So ultimately, there are reasons pro and con to buying this spring versus waiting until the fall. In this environment your best guide about whether the time is right for you is to look at your own circumstances. Regardless of national trends, local market conditions can vary. Even in an unfavorable market there may be steals out there. Other factors to take into consideration are how stable your finances are, your credit score, how much you have saved for a down payment, and the potential maintenance and repair needs of the property, energy efficiency, HOA fees and other hidden costs. Finally, your choice will be affected by how long you plan to own the property. If you’re only going to live there a few years until your next deployment or transfer, then you might be able to absorb a less-than-ideal deal. If this is going to be a place you put down deep roots, then you’ll want to make a much more careful choice before getting locked into those mortgage payments.
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