New year, new home. Whether this is your first home or you're looking to upgrade, we've got your back with straightforward advice and helpful tips to make your home-buying journey smoother.

What's Going On in Today's Housing Market?

Gone are the crazy days of 2020-2021 when houses were selling in hours across the board. The market in 2025 is different, but in many ways, that's good news for buyers like you. Interest rates aren't as low as they once were, but they've settled into a more predictable pattern. Even if that pattern is, well, a bit high. Higher mortgage rates disincentivize homeowners from selling - even for a profit - because the equity they’ve earned will be eaten up by higher mortgage payments on their new home.

In certain states, the rise of newly constructed buildings have caused a boom of excessive inventory that are leaving home sellers to compete with builders. This is especially true in Florida and Texas where already historically high home insurance rates have steadily increased over the past decade, causing hesitation for would-be buyers to commit to the home.

Another big change? The impact of remote work on real estate is and will continue to be intense this year. You might not need to live close to the office anymore, which opens up tons of housing options you might not have considered before. Likewise, some employers who previously had WFM policies are reversing them, which further contributes to the musical chair scenario we’ve been seeing since the pandemic.

Source: John Burns Research & Consulting

Getting Your Money in Order

Before you start browsing those home listings, let's talk about getting your finances ready. Think of it as preparing for a big game - you want to be in top shape before you start playing.

First up: your credit score. Most lenders want to see a score of 680 or higher, but don't panic if you're not there yet. Give yourself at least six months to improve your score before house hunting. What about down payments? While 20% is traditional, many people don't put that much down. There are lots of programs that accept lower down payments, especially for first-time buyers. Yes, interest rates are higher than a few years ago. But here's a secret: you're not stuck with your first rate forever. Many buyers are using what we call the "marry the house, date the rate" strategy - buy now and refinance later when rates drop. Get prequalified from a reputable local lender to know exactly how much home you can afford.

Tech (Keeps) Makes Home Buying Easier

House hunting in 2025 is way different than it used to be. Your phone can now do a lot of the heavy lifting! Virtual tours let you check out homes from your couch, and smart apps help you compare prices and neighborhoods. Buyers can use AI tools like ChatGPT or Google’s Gemini to supplement information from their buyer’s agent and answer questions on the fly.

But here's a pro tip: don't skip the in-person visits if you can. No virtual tour can tell you how the neighborhood feels at night or if the upstairs neighbor loves heavy metal music!

Getting the Best Deal

Good news! Buyers still have power to negotiate in 2025. Winter months often mean better deals, but you can find good opportunities year-round if you know where to look. Don't be shy about asking for what you want. Sellers are more willing to fix problems or help with closing costs than they were a few years ago. Remember this: the perfect time to buy a home is when you're ready - financially and personally. Don't let market predictions stress you out too much. Focus on finding a home that fits your life and your budget.

At Vreeland Real Estate, we have a solid track record for negotiating relentlessly for our homebuyers - from seller-paid closing costs to seller-paid repairs. Connect with a team that DELIVERS.