“Is it a good time to buy a house” and “Is it a good time for me to buy a house” are two different questions, and both are important to consider when you’re looking to buy a home, so you’ll want to answer both questions before you make the call.
Is Now a Good Time to Buy a House?
First, consider housing market conditions. The national average for a 30-year fixed rate mortgage (the most common) is around 6.7 percent, which is comparable to 2024’s rates, but lower than the sky-high 8 percent they were in the last quarter of 2023. The Federal Reserve voted to continue its pause on rate cuts, and while it doesn’t directly control mortgage rates, it’s likely they’ll remain above 6 percent for the time being.
Home prices have climbed as well; the median home price in February 2025 was $414,500, according to U.S. census data. Housing inventory levels, however, are climbing slowly as new buyers cautiously enter the market. At the end of February, the total number of unsold homes was 1.24 million, according to the National Association of Realtors. These conditions have created an odd market; some homes fly off the shelves, while others sit untouched for weeks or even months.
Concerns about tariffs have also affected the market. The cost of lumber has already increased, and the National Association of Home Builders has appealed to President Trump in a letter expressing concern about the impact of his proposed 25 percent tariffs on domestic housing construction.
Should I Buy a House Now, or Wait?
Market conditions aside, your personal abilities and goals are also important to consider. You can’t control the market, but you do have a measure of control of your own situation.
Despite current market conditions, buying now does have its merits. Locking in a fixed rate now means you won’t have to contend with fluctuations, and you can start building equity.
Not every home follows trends, either. Though the national average price is close to its all-time high, some individual areas have seen declining prices. This, in conjunction with an increase in housing inventory, gives you more buying power.
In the end, your personal situation is what is just as important, if not maybe more so, than the market. Can you personally afford a home right now with what’s in your bank account?
If you have a stable job, solid monthly income, enough savings for a down payment and other closing costs, and good credit, you’re in pretty good shape to start the home search. And, chances are, you can find a good home that meets your needs with a decent mortgage rate.
If any of these factors are in question, however, waiting to see how things shake out isn’t a bad idea, especially with the market in such a volatile state. Owning a home is a long-term investment, and you’ll want to be as prepared as you can when you start the hunt.
To learn more about new homes and the housing market, visit newhomesoruce.com/learn.
James Klingele
James Klingele holds a Bachelor of Science in Digital Media Innovation from Texas State University. He is a digital media specialist and content creator with a passion for storytelling in both print and digital formats. His work has included covering high-profile events like SXSW, where he contributed to content creation for global audiences. He has been a content specialist for NewHomeSource since 2024.