As we approach the second quarter of 2025, the real estate market continues to move in new directions. Many buyers and sellers are asking the same questions:
“Is now a good time to buy?”
“Should I wait to sell?”
“What do the mortgage rates mean for me?”
Let’s break down what’s really happening in the housing market during the first four months of 2025 and what you need to know before making your next move.
Are Home Sales Up or Down?
Compared to this time last year, home sales have slowed slightly. This doesn’t mean the market is in trouble it means buyers are being more intentional, and sellers are becoming more strategic.
Several factors are behind this trend:
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Higher mortgage rates have slightly reduced buying power.
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Limited inventory is still a major issue in many areas.
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Affordability concerns continue to keep some buyers on the sidelines.
Despite fewer total sales, homes that are well-priced and well-presented are still moving sometimes quickly and with competitive offers.
Is It a Buyer’s or Seller’s Market?
Right now, it’s a balanced market with shifts depending on location and property type.
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In high-demand neighborhoods, the market still favors sellers especially for move-in-ready homes. These properties are getting attention fast and sometimes selling above asking price.
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In less competitive areas, or with homes that need updates, buyers have more leverage including the ability to negotiate price, repairs, and concessions.
In other words, this is not a “one-size-fits-all” market. Whether you’re buying or selling, local trends matter more than ever.
How Mortgage Rates Are Shaping the Market
Interest rates remain one of the biggest influences in 2025. As of April, most buyers are seeing mortgage rates between 6.5% and 7%, depending on credit and loan type.
While that’s significantly higher than the record lows of 2020–2021, many buyers have accepted this as the new normal. In fact, we’re seeing:
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A rise in adjustable-rate mortgages (ARMs) as buyers look for lower initial payments.
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Increased use of rate buydowns or seller-paid closing costs to help reduce upfront expenses.
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Creative financing strategies from lenders and real estate professionals to keep deals moving.
If you’re waiting for rates to drop before buying, remember: prices may rise when that happens. Buying now could still be a smart long-term move especially if you plan to refinance later.
What Does This Mean for Sellers?
If you’re a homeowner considering selling, this market still offers real opportunity but strategy is key. Here’s how to stand out:
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Price it right: Buyers are more informed than ever. Overpriced homes are sitting on the market and seeing price drops.
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Prepare your home: Curb appeal, staging, and small repairs can make a huge difference.
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Market creatively: Video tours, high-quality photos, and strong digital marketing help you reach motivated buyers quickly.
Even in a slower-paced market, serious buyers are out there and they’re ready to make a move for the right home.
What Does This Mean for Buyers?
For buyers, this market brings new advantages:
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More negotiating room: Sellers are more open to price reductions, credits, and contingencies.
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Less competition: Bidding wars have cooled in many areas, giving buyers a bit more breathing room.
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Time to think: You no longer have to make an offer within hours of a showing—though desirable homes still go fast.
If you’re financially ready, this could be the right time to buy with less pressure and more flexibility.
What’s Next?
As we move into the summer months, many experts predict steady market conditions with modest growth in inventory and a slow-but-steady adjustment to current interest rates.
Whether you’re buying or selling, the most important thing is to:
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Stay informed about local trends (not just national headlines).
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Work with a trusted advisor who understands your goals.
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Make decisions based on your timeline and financial situation, not fear or hype.
Thinking about buying or selling in 2025?
Let’s talk about what’s happening in your neighborhood and how you can make the most of today’s market.
I’m here to guide you every step of the way.
📧 jhony@jhonyleyva.com
📱 571-247-7543
🌐 www.jhonyleyva.com
