By Tasha Bright, Senior Correspondent
Robert Reffkin, CEO of Compass Real Estate, is urging prospective homebuyers to seize current market conditions, outlining three pivotal reasons why now may be the most favorable time in years to purchase a home. According to Reffkin, a surge in housing inventory, slight declines in home prices, and stabilizing mortgage rates have created a uniquely advantageous environment for buyers looking to make their move in 2025.
Home Inventory Hits Five-Year Peak
One of the strongest arguments in favor of buying now is the significant uptick in available housing inventory. The number of active listings in the U.S. has climbed to its highest level since 2020, giving buyers a broader selection of homes to choose from. This expansion in inventory also enhances buyers’ negotiating leverage—something that had been lacking in recent years when competition was fierce and sellers dominated the market.
Current market dynamics show that there are substantially more sellers than buyers in many regions, particularly in suburban markets where remote work trends have shifted demand. For those who were previously priced out or overwhelmed by limited options, this broader inventory offers a renewed chance to find the right home at a reasonable price.
Real estate experts also note that this surge is not necessarily a sign of market instability but rather a normalization after several years of unprecedented scarcity. The return to a more balanced market is helping restore confidence among cautious buyers.
Prices Ease Amid Slower Demand
Adding to the appeal for buyers, home prices have begun to show modest declines across several key markets. The national median sales price has edged down slightly compared to last year, marking a break from the rapid appreciation seen during the pandemic-era housing boom.
While this decline is not uniform across all regions, many buyers are finding better deals, especially in markets that experienced the most dramatic price spikes in 2021 and 2022. For example, prices in parts of the Sun Belt and West Coast have softened as affordability challenges reduced demand.
Inflation-adjusted housing costs are also decreasing, further improving the real purchasing power of buyers. Reffkin points out that this trend, coupled with a stabilization in construction material costs, could help keep home prices relatively steady in the near future.
This pricing environment allows buyers not only to afford more but also to negotiate for additional concessions, such as covering closing costs or securing home repairs as part of the sale agreement. These flexibilities had largely disappeared during the red-hot housing market of previous years.
Mortgage Rates Stabilizing Below Early 2025 Highs
Another factor tipping the scales in favor of homebuyers is the recent decline in mortgage rates. After peaking earlier in the year, average 30-year fixed mortgage rates have settled below 7%, with current rates hovering around 6.89%. This downward trend provides relief to buyers concerned about borrowing costs and monthly payments.
Although rates remain higher than the historic lows of 2020 and 2021, today’s environment is far more favorable than many analysts had forecasted. More importantly, rates have shown signs of consistency in recent weeks, reducing the volatility that can cause anxiety among potential buyers.
Reffkin believes this rate stabilization will have a domino effect—encouraging more buyers to re-enter the market and more sellers to list properties, further enriching inventory. He also noted that broader economic stability and improved consumer sentiment are contributing to increased activity in the real estate sector.
Why Buyers Should Act Now
With these three factors—expanded inventory, softer prices, and improving rates—aligning, buyers are uniquely positioned to benefit from current market conditions. Those who delayed purchases due to competitive bidding wars, inflated prices, or high borrowing costs may find that 2025 presents a more balanced and approachable landscape.
Market analysts agree that while long-term home appreciation is likely to continue, the window for buyers to secure favorable terms may narrow if demand rebounds sharply or if inflationary pressures resurface. Acting during this window of opportunity could yield significant savings and a smoother transaction process.
Homeownership also remains a key pillar of financial stability and long-term wealth creation for many Americans. As Reffkin puts it, “This is a moment when smart buyers can take control of their housing future and find value in a cooling market.”
