When is the best time to buy a home in 2025? Well, I think if you’re talking about the Midwest, it’s probably spring because that’s when the most homes will be listed for sale. But every year is a different market, right?
Markets can change pretty quickly at times. Other times it’s just a very subtle change over several quarters. Sometimes it has to do with average home price. Today it’s more of a scarcity issue.
In Chicago, CPD officers have to live in the city. For them police credit union mortgage rates are a key factor since they can’t look outside of the city where home prices could be cheaper. Suburban police officers don’t have that constraint so they’re looking at a totally different market.
In other areas in the Midwest, let’s say Ohio for example, that market is going to be a little bit of a different ballgame. There will probably be more listings.
People are going to put their homes for sale when they think they’re going to get the optimal price. In the past, it used to be if you wanted to try to find a bargain, you’d try to find it in closer to the wintertime.
It just comes right down to the scarcity of inventory now. Rates going up over the last few years has made buying a home not as affordable. So, you don’t have as many people looking for properties. You also have people that currently own a home and don’t want to sell right now. That’s not going to change until they feel confident that we’re back in a healthy market. And then it goes back to consumer confidence. It goes back to a lot of intrinsic things.
It also does have to do with age group. First-time home buyers will probably get a better deal. They are presumably going to buy a cheaper home because it’s smaller and in a more affordable area. It is also a little bit easier to plan for since they have no home to sell.
But if you’re a second-time home buyer, or somebody who’s looking to downsize, that’s going to be a longer play because you’re going to have to find the right fit for you. Even though you might be in a position financially to afford a lot more, you still have a house to sell in many cases.
You’re going to need a certain amount of equity out of the home that you’re selling. You’re not going to just put that up for sale haphazardly without having a certain amount of confidence.
Now, in places like Arizona, the market is different. I think in that region of the country there are still a lot of people trying to get out that way. Outside of the holidays, I don’t think there’s a bad time to buy a home in Arizona.
In the Midwest and East, basically wherever the weather is comprised of four seasons, nobody really wants to put a house on the market when there’s snow on the ground. It’s probably more likely during the more temperate months. It’s generally better to show a house, even virtually, when the weather is nicer.
If rates drop, then all bets are off. I know we will quickly see greater demand for police home loans regardless of the season in that case. However, based on what I think is going to happen in 2025, I don’t know that that’s going to be something that we have to concern ourselves with until later in the year.
Police Mortgage specializes in conventional mortgages, purchase money transactions, FHA loans, and VA loans. Led by founder and CEO John Aretos, Police Mortgage is known and respected for providing clients with exceptional service, customized terms, quick and easy closings, and low money down options. To learn more about Police Mortgage, go to www.policemortgage.com or call 312-499-8878.
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