June 2025 Housing Market Update: Is It Finally a Good Time to Buy?
If you’ve been watching the real estate market from the sidelines, waiting for the chaos to settle, the time may be here. The housing market has entered a new phase—one that looks a lot more balanced than we’ve seen in years. Prices are stabilizing, inventory is rising, and buyers are finally getting some negotiating power back. Whether you’re buying your first home or looking for an investment property, here’s what’s really happening in the market right now—and where the best opportunities are.
Bidding Wars Are Mostly Over
In 2021 and 2022, buyers were routinely offering tens of thousands over asking price, sometimes without even seeing the home. That frenzied pace has calmed considerably. As of spring 2025, only 28% of homes are selling above asking price, a significant drop from the 53% peak during the pandemic housing boom. Many sellers are no longer in the driver's seat. In fact, price cuts are becoming more common, and homes are spending more time on the market—giving buyers room to negotiate.
In many metro areas, homes are now selling for 5% to 7% below listing price, especially if they've been sitting on the market for a few weeks. Sellers are more open to concessions too, including covering closing costs, offering rate buydowns, or throwing in home warranties and repair credits to get deals done.
Mortgage Rates Are Still High—but Not as Bad as They Were
Mortgage rates are still elevated compared to the historically low rates of 2020 and 2021, but they’ve improved slightly since peaking in late 2024. As of June 2025, the average 30-year fixed mortgage rate is around 6.9%. This is a modest but important dip that could make a noticeable difference in monthly payments for many buyers.
If inflation continues to cool and the Federal Reserve chooses to hold or cut rates later in the year, we could see even more relief. That said, many lenders are offering creative solutions such as adjustable-rate mortgages (ARMs), temporary rate buydowns, and refinancing guarantees to help buyers get into homes with more manageable terms upfront.
Buyers who lock in a home at today's rate can also benefit later by refinancing if rates fall—potentially giving them the best of both worlds.
Best Markets for Buyers in Mid-2025
While national headlines often focus on high-priced metros, the real opportunities right now are in regional markets where prices have cooled, inventory is up, and sellers are motivated. These cities are seeing slower price growth—or even price declines—and offer better deals than many of their coastal counterparts:
Boise, Idaho: After becoming one of the most overvalued markets during the pandemic, Boise has seen a nearly 3% year-over-year price decline. Inventory is healthy, and price reductions are common, making it attractive for buyers who were previously priced out.
Phoenix, Arizona: The red-hot market is now cooling, with home prices down about 2.4% from last year. Phoenix has more listings than active buyers, giving first-time and move-up buyers leverage they haven’t had in years.
Salt Lake City, Utah: Similar to Boise, Salt Lake City is experiencing a correction. Prices are down about 2%, and suburban inventory is up. Buyers looking for a high quality of life and steady job growth may find strong value here.
Las Vegas, Nevada: After booming in 2020–2022, Las Vegas has cooled, with prices slipping about 1.2%. Investors are pulling back, and more resale inventory is creating breathing room for regular buyers.
Austin suburbs, Texas: Central Austin remains competitive, but suburban areas like Pflugerville, Round Rock, and Kyle are seeing price adjustments and more seller concessions. With strong job growth and a large pool of new construction, this area remains appealing for long-term buyers.
Other cities such as Minneapolis, Milwaukee, Detroit, and parts of western Pennsylvania are also becoming attractive due to affordability, stable employment, and lower competition.
Inventory Is Improving—But Not Everywhere
The national housing inventory is finally growing after years of being severely limited. Builders are completing more homes than they’re starting, meaning more finished properties are entering the market. This is especially true in the South and Midwest, where construction has been more affordable and zoning less restrictive.
However, not all markets are seeing the same gains. In high-demand coastal areas like San Diego, Boston, and Seattle, inventory remains tight due to limited buildable land, restrictive permitting, and high construction costs.
Another bright spot: more homeowners are deciding to list after sitting out the market during the rate hikes of 2023–2024. With rates stabilizing and fears of missing the peak behind them, we’re seeing more move-up buyers re-entering the market and freeing up their starter homes in the process.
Rents Are Climbing Again—Fast
While the for-sale market is cooling, the rental market is heating back up. With many would-be buyers holding off due to interest rates or affordability concerns, demand for rental housing is rising quickly. At the same time, the pace of new apartment construction has slowed significantly—leading to a tightening rental supply.
According to Zillow, single-family home rents are expected to rise about 2.8% in 2025, with multifamily rents increasing by 1.6%. In some cities like Tampa, Denver, and Oakland, rents are climbing even faster. That’s squeezing many renters, especially those who had hoped to transition into homeownership this year but are now renewing leases instead.
For investors and landlords, this is a promising trend, as higher rents can improve cash flow. But for renters, it may be worth running the numbers again—owning may not be as far out of reach as it once seemed, especially with more homes available and less competition in the for-sale market.
Market Outlook for the Rest of 2025
So, where are we headed? Most housing economists are predicting flat to slightly declining home prices nationwide through the end of the year—somewhere between a 0.5% decline and 2% growth depending on the market. The softening we’re seeing now isn’t expected to turn into a crash, largely because demand is still strong and new construction remains below long-term needs.
Looking further out, many analysts expect cumulative home price appreciation of 15–20% over the next five years, especially in affordable markets with strong job growth and population increases. The wild swings of the pandemic era are behind us, and the market appears to be settling into a slower, more sustainable growth cycle.
However, the outlook could change depending on broader economic forces. If mortgage rates drop sharply, demand could spike again. If inflation ticks back up, the Fed may hold rates higher for longer. Policy changes around Fannie Mae, Freddie Mac, or local housing regulations could also play a role in how quickly new housing stock comes online.
Final Thoughts: What Buyers Should Know Right Now
The market in mid-2025 is one of the most buyer-friendly environments we’ve seen in years—but it varies by location. Buyers who are prepared, flexible, and willing to shop smart can take advantage of price drops, motivated sellers, and lower competition. The best strategies include:
Looking in secondary or overlooked markets where inventory is growing
Being open to homes that need minor updates or staging help
Asking for seller concessions, especially if a property has been listed for more than 30 days
Staying informed about local pricing trends and not relying solely on national headlines
Working with a real estate agent who knows how to negotiate in this new environment
If you're a buyer, now is the time to re-engage. The door may be opening—especially in markets that favor you, not the seller.
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