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🏠 2025 Outlook: Homebuying May Get Easier as Prices and Rates Settle

More inventory, slower price growth, and stabilizing rates could make it easier to reach the finish line.

🏁 Market Trends | Real Estate | Homebuying Affordability

According to new insights from Mark Fleming, Chief Economist at First American Financial Corp., homebuying affordability could be gearing up for a comeback in 2025. For aspiring buyers navigating the current affordability marathon, this is welcome news.


The Starting Line: January’s Dip in Affordability

Let’s not sugarcoat it—January wasn’t a great month for buyers. Based on First American’s Real House Price Index (RHPI), affordability dropped 2.3% year-over-year and month-over-month. The culprits? A one-two punch of rising nominal home prices and stubbornly high 30-year fixed mortgage rates.

Even though household incomes rose 3.8% over the year, that boost wasn't quite enough to offset the higher costs of buying.


Picking Up Speed: February’s Turnaround

But here’s the plot twist: February data is showing signs of improvement. Slower home price growth, a slight drop in mortgage rates, and continued income growth are all contributing to a more buyer-friendly environment.


🏡 Current housing supply is sitting at 4.6 months, which signals a market beginning to balance. That’s an improvement from the tighter 3.9-month supply reported a year ago.


🐷 RSL Piggy Points: What This Means for You

  • 🐷 More inventory = less competition, easing upward pressure on prices.

  • 🐷 Mortgage rates are slowly cooling, helping affordability inch back.

  • 🐷 Home price appreciation is projected at 2.1% for 2025—a manageable pace.

  • 🐷 If trends hold, affordability could improve by nearly 3% by year-end.

“As existing homeowners increasingly accept the ‘higher for longer’ rate reality and choose to list their homes, it’s reasonable to expect supply will continue to increase—cooling price appreciation even more,” says Fleming.

🏁 RSL Perspective: Your Partner in the Homebuying Race

At ReadySetLoan, we know timing the market can feel like trying to hit a moving target. But you don’t have to run this race alone.


We track trends like this so you can make informed, confident decisions about when to buy, how to budget, and what loan programs can stretch your buying power.


🏡 Want to strategize your homebuying game plan? Let ReadySetLoan be your coach, your cheerleader, and your expert pit crew. Visit ReadySetLoan today—we're ready when you are.



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