I’ve had this question pop up a lot lately—both from emails and from casual chats with friends over coffee:
“Is now a good time to buy a house?”
And to be honest, it’s a fair question. July 2025 is an interesting moment in the real estate world. Interest rates are still high (though not as crazy as they were in early 2023), prices in some areas are cooling, and the housing inventory is starting to pick up… slowly.
So today, I’m breaking down how I’m personally thinking about the housing market right now—from a personal finance perspective, not as a realtor or market speculator. Just a regular person trying to make smart, grounded money decisions.
1. Interest Rates: Still Elevated, But Stable
Right now, mortgage rates are hovering around 6.5% to 7%. That’s high compared to what we got used to in the 2010s, but not outlandish if you zoom out and look at 40-year trends. Still, if you’re coming in with 10% or 20% down, this means your monthly payments are going to feel heavier than they would’ve a few years ago.
For me, this means one thing: don’t stretch. If you’re considering buying, make sure your monthly housing cost is something you could comfortably afford even if other parts of your budget fluctuate. Don’t bank on refinancing in a year or two. That might happen—but it also might not.
2. Home Prices: Sticky, But Local Markets Are Moving Differently
In May 2025, we’re seeing a real “split personality” housing market. Some overpriced metro areas are finally softening. Others, especially in the South and Midwest, are holding steady or even rising slowly.
If you’re looking in a city where prices have been flat or slightly down, this might actually be a strategic entry point—especially if you’re buying a primary residence and plan to stay put for at least 5–7 years.
This is where personal finance meets real life: I’m not trying to time the bottom. I’m trying to make decisions that work for my long-term goals.
3. More Homes Are Hitting the Market
One thing I’ve noticed—and I’ve seen it confirmed in data—is that more sellers are finally coming off the sidelines. Inventory is still tight compared to pre-2020 levels, but it’s less competitive than it was even 12 months ago. There are more homes sitting for 30+ days, and that gives you, as a buyer, some negotiating room.
If I were buying this month, I’d focus on:
- Homes that have been sitting for a while (30+ days)
- Sellers who are relocating for work or downsizing—anyone likely motivated
- Smaller, less “Instagram-perfect” houses that are structurally solid but need minor cosmetic upgrades
4. Renting vs. Buying: Do the Math
This one always hits home for me: Buying is not always better. I still rent—and I’m completely at peace with that decision. For me, it would cost significantly more per month to own a similar place right now, even after tax deductions.
Before you buy, I’d strongly suggest:
- Comparing your total monthly homeownership cost (mortgage, taxes, insurance, maintenance) to current rent prices
- Estimating how long you’ll realistically stay in the home
- Considering how stable your job or income is
If you’re not planning to stay for at least 5 years, renting still makes a lot of sense—especially in 2025.
5. Final Thoughts: Is It a “Good” Time?
Here’s the truth: there’s rarely a perfect time to buy a home. There’s only a good time for you, based on your finances, goals, and lifestyle.
If you have:
- A solid down payment
- Emergency savings
- A stable income
- A home you really like in a market you understand
…then July 2025 might be a great time to make your move.
But if you’re unsure, feeling FOMO, or trying to “beat the market,” I’d pause. Owning a home is a long-term game. Don’t let headlines or TikTok videos rush you into one of the biggest financial decisions of your life.
What I’m doing personally:
I’m still watching the market, saving aggressively, and being very selective. I’m not out there with a preapproval letter every weekend—but I’m not frozen either. If the right place pops up, I’ll know. And I’ll be ready.
Let me know in the comments—are you thinking about buying in 2025? What’s holding you back (or pushing you forward)?
