House hunter Karisma Hazel is hoping to buy a home this spring. She knows if she waits too long to make an offer on a home she loves, it could be gone.
“We saw one that we loved, and the day we saw it there were multiple tours,” Hazel said, “and before we could submit an offer it was off the market.”
Hazel is relying on the expertise of real estate agents Steven and Denise Taylor.
The Taylors say they are seeing signs of more starter homes on the market this spring, as families outgrow their current homes.
“First-time homebuyers were pretty much kicked out of the market because it was so competitive,” Denise Taylor said. “Now we are seeing they have more options, inspections are back on the table, there is more room for renegotiations.”
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While prices remain high, at a median sale price of $381,975, according to real estate company Redfin, the Taylors expect fewer bidding wars in the spring of 2025.
“Houses were going $50,000 or $100,000 over list,” Steven Taylor said. “We have definitely seen that change and shift back to the normal pricing.”
See the frustration of a young home buyer, and what the outlook is for 2025
Preparing to enter an expensive market
Redfin reports more house hunters are touring homes and applying for mortgages as weekly average mortgage rates have dipped in recent weeks.
But national housing expert Kirsten Jordan tells us buyers need to prepare for housing expenses outside of their monthly mortgage payments.
“The other layers of costs of homeownership,” Jordan said. “If you're moving out of a city, it might mean that you need to get a car or get a second car.”
Jordan said other costs such as landscaping, insurance, and repairs often catch new buyers off guard, so adjust your budget accordingly.
“If you need to be all in at where you're renting, then you need to expect to pay less in what your monthly housing costs are going to be,” she explained, “because there's going to be other stuff that you're going to end up paying for.”
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Jordan also warns buyers not to build a budget around the hope of refinancing. Instead, she said to lock in a rate that works for your budget now.
“When interest rates finally come down, that's a bonus for you,” she said. “That's exactly what it should be. Your affordability plan cannot be predicated on rates coming down, because we don't know when that's going to happen.”
Down payment myth
For new buyers who think a 20% down payment is required to buy a home, NerdWallet mortgage reporter Holden Lewis said that’s simply not the case.
“The typical first-time homebuyer is putting down about 9%, and that seems a little high to me,” Lewis said.
In its 2025 Home Buyer Report, 33% of non-homeowners surveyed told NerdWallet, “that not having enough money for a down payment is holding them back from buying a home at this time.”
This misconception could be stopping some people from buying, but keep in mind, “the smaller the down payment, the higher that monthly payment is going to be,” Lewis said. “That's a real seesaw that you have to make sure that you're on the right side of.”
With the market so competitive for young buyers, Steven and Denise Taylor agree that an experienced agent in your area can help keep you informed about listings and help seal the deal.
"We try to make it easy, and what's the word? Pain free,” Steven Taylor said.
That way you don’t waste your money.
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