Should I buy a house now or wait until 2026?
Whether you should buy a house now or wait until 2026 depends on several factors, including market conditions, your financial situation, and long-term goals. Here are some key considerations:
Reasons to Buy Now (2025)
- Home Prices Are Still Rising – While home price growth is expected to slow, it’s still projected to increase. Buying now could lock in a price before further appreciation.
- Housing Inventory Remains Tight – If demand stays strong and inventory remains low, waiting may not lead to significantly lower prices.
- Personal and Financial Stability – If you’re in a good financial position, with stable income and savings for a down payment, it might make sense to buy now rather than wait.
- Potential Mortgage Rate Cuts – Some experts predict rates could ease slightly in late 2025, but waiting for significant drops might not be worth the risk of rising home prices.
Bottom Line
- If you find a home that fits your needs and budget in 2025, buying now could be a good decision, especially if you plan to stay long-term and refinance later if rates drop.
Home sellers would probably be wise to sell before 2026. Likewise, if you are looking to downsize, it would be to your economic advantage to do it sooner rather than later. The reason, of course, is the outsized impact of the baby boomer generation.
Real Estate Experts Say the Market Will Change DRASTICALLY This Year
In 2025, the U.S. housing market is undergoing significant changes due to new policies and evolving market dynamics. Here’s an overview of the key developments:
Increase in Housing Supply
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Accessory Dwelling Units (ADUs): States like California, Arizona, and Nebraska have enacted regulations permitting the construction of ADUs on residential lots. This initiative aims to alleviate housing shortages by increasing the number of affordable housing options.
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Conversion of Commercial Spaces: In New York City, amendments to the “City of Yes for Housing Opportunity” initiative are facilitating the transformation of commercial buildings into residential spaces, thereby expanding the housing inventory.
Enhanced Renters’ Rights
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Fair Chance Housing Act: New York City has implemented this act, limiting landlords’ ability to consider an applicant’s criminal history during the housing application process. Such measures are designed to promote equitable access to housing.
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Brokerage Fee Regulations: The FARE Act in New York City prohibits landlords from passing brokerage fees onto potential tenants, reducing upfront costs for renters.
Implementation of Mansion Taxes
- Additional Property Taxes: Several states, including New York, New Jersey, Maryland, Connecticut, Hawaii, and the District of Columbia, have introduced “mansion taxes.” These taxes impose additional levies on high-value property transactions, aiming to generate revenue for affordable housing initiatives.
Mortgage Rates and Market Outlook
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Stable Mortgage Rates: The Mortgage Bankers Association projects that 30-year mortgage rates will stabilize around 6.5% in 2025.
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Market Stability: Experts do not anticipate a housing market crash in 2025. Instead, a modest rise in home sales is expected, with an increase in housing inventory making the market slightly more favorable for buyers.
These developments indicate a shift towards a more balanced housing market, with increased supply and enhanced protections for renters. Prospective buyers and renters should stay informed about these changes to navigate the evolving landscape effectively.
Source: IA
