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Renting vs. Buying: What The Numbers Say
Renting often feels like the simpler move these days. There’s no down payment to save up for, no surprise repair bills, and no long-term commitment if life changes.
But then your lease renews and the rent jumps. Then it happens again. Eventually, what felt flexible suddenly starts to feel expensive, especially when you realize every monthly payment is going to your landlord, not building wealth for you.
A big reason this stings is because there’s been so much talk about how homeownership is “out of reach.” And in some markets, it absolutely can be. But here’s the part that doesn’t get said enough: when you compare the numbers side by side, buying can cost less per month than renting in more places than most people expect.
Buying Can Be More Affordable Than Renting in Many Areas
In a lot of markets today, owning a home may actually have a lower monthly cost than renting a 3-bedroom home. New data from ATTOM suggest this is true in nearly 58% of counties across the United States.
And this comparison isn’t just a mortgage payment versus rent. It also takes into account common ownership costs like insurance and regular maintenance.
So if you’ve assumed buying automatically means a higher monthly bill, it may be worth a second look. Recent changes in home price growth, housing inventory, and mortgage rates have been shaking certain markets. Depending on where you live, buying might be finally in your favor.
Affordability Depends on Where You Live
Even though the national picture has shifted, it doesn’t mean buying is cheaper everywhere, or that every renter will have the same experience.
That “nearly 58%” figure looks very different depending on the region. The biggest improvement is happening in the Midwest and South, while the West can still feel tight for many households.
The key takeaway is simple: real estate is local. A national headline can’t tell you what the rent-versus-buy equation looks like in your zip code. The only way to know is to run the numbers based on your local prices, rents, taxes, and insurance.
What’s Still Holding Buyers Back?
If you’re thinking, “Even if the monthly payment works, I can’t afford the upfront costs,” you’re not alone.
For many renters, the biggest hurdle isn’t the monthly payment. It’s the down payment (and often closing costs) that feels like a wall.
Here’s the good news: there are thousands of down payment assistance programs across the country, and many buyers qualify without realizing it. The average benefit is around $18,000, which can help cover part of your down payment or closing costs.
Support like this can make buying feel a lot more realistic, because it reduces how much cash you need to get in the door.
How to Figure Out What’s Right for You
If you want clarity instead of guesswork, focus on a simple comparison:
- Your current rent (and how often it’s rising).
- An estimated monthly ownership cost (mortgage, taxes, insurance, HOA if applicable).
- A realistic maintenance cushion.
- Upfront costs (and any down payment assistance you may qualify for).
When you combine potential assistance with monthly costs that may be closer than expected, the gap between renting and buying can shrink quickly, or even flip in favor of buying.
Conclusion
The bottom line isn’t that everyone should buy a home as soon as possible.
The idea is that renting isn’t always the cheaper option people assume it is, and buying may be more realistic than it feels once you look at the full picture.
If you’re renting and feel stuck saying “someday”, consider a quick conversation with a local real estate agent or lender. Not a commitment, just a way to see what’s possible and whether it makes sense for you.
Are You Waiting To Buy? This Spring May Be Your Time To Move
Between low inventory, high home prices, and unpredictable mortgage rates, 2024 was a rocky year for real estate. It should come as no surprise then that 70% of buyers stopped their home search last year. If you were one of them and are still waiting to buy in 2025, this spring could be your time.
The Drive of Housing Inventory
Many homeowners who put their move on pause last year are reentering the market this year. This means higher, stronger listing inventory, and with builders finishing more homes, new construction inventory is growing as well. Together, this creates more options for buyers like you, and better chances of finding the home you’ve waited for.
But that’s only part of the story. When you’re selling, you want to feel confident that you’ll find a home you’ll be thrilled to move into. At the same time, you don’t want housing inventory so high that your current house sits on the market. Fortunately, the spring 2025 market is striking a balance between supply and demand that many have waited for.
According to research from Realtor.com, housing inventory has jumped 28.5% year-over-year, making March the 17th straight month of inventory growth. This is still below pre-pandemic levels in most markets, but it’s a sweet spot for anyone waiting to buy.
For patient buyers, this means you’ll have more options when moving, but not so many that your current house won’t sell. As long as there’s a healthy demand for homes in your area, your house should still sell relatively quickly. Especially if you work with a local agent to make sure it’s priced right and fixed up to maximize value.
The Sweet Spot: More Options and Steady Demand
Here’s another promising point to think about. As we said, Realtor.com‘s March 2025 data shows that housing inventory has been rising for 17 consecutive months. What’s better, industry experts agree that listing inventory is likely to continue climbing through 2025. According to Lance Lambert, the Co-Founder of ResiClub:
“The fact that inventory is rising year-over-year . . . strongly suggests that national active housing inventory for sale is likely to end the year higher.”
If this prediction proves correct, this spring may be a better time to sell than you think. Listing now could help your house may stand out more than it would later in the year as inventory grows. With more homeowners reentering the market, waiting too long could make it all the more difficult to stand out.
Conclusion
If you’re one of the many who have been waiting to buy a house this past year, here’s your chance. Housing supply is growing but hasn’t caught up to demand yet, meaning new listings are still getting extra buyer attention. Meanwhile, increasing inventory is giving current homeowners more opportunities to scale up, further driving supply and activating buyers.
For both first time buyers and homeowners waiting to sell, this spring’s market is trending toward an ideal sweet spot. If you have questions keeping you from making your move, reach out to us for answers today. We can get you the info you need, or connect you with an agent to navigate your unique local market.
Many Fear a Housing Market Crash in 2025 – Will It Happen?
Between every economic uncertainty underpinning this year so far, Americans are understandably trepid about the future. Amid market lows and rising prices, many are asking if we’re heading for a housing market crash in 2025.
If talk of tariffs and mercurial markets are giving you pause about your plans, you’re not alone. In fact, new data from Clever Real Estate has found that 70% of Americans are worried about a housing crash in 2025. But how likely is this, and what does the latest data say?
Low Inventory Prevents a Crash in Prices
Before you put your plans to buy or a sell a home on hold, let’s look at the facts. The reality is that the trends in the housing market we’re seeing aren’t signs of crashing, only of shifting. As Chief Economist at First American Mark Fleming explains:
“There’s just generally not enough supply. There are more people than housing inventory. It’s Econ 101.”
Consider the basic laws of supply and demand. If the supply of something is low, its prices are bound to go up, and homes are no exception. And even though housing inventory is up in 2025, high demand from buyers is still driving home prices higher.
According to recent data from Realtor.com, the number of homes for sale in 2025 is climbing, but still below normal levels. Even still, home supply is at its highest since pre-pandemic levels, showing a positive trend in the right direction.
That ongoing low supply is what’s stopping home prices from dropping at the national level. As Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), says:
“… if there’s a shortage, prices simply cannot crash.”
Home Prices Normalize as Inventory Increases
As more homes are listed on the market, upward pressure on home price growth normalizes. Prices may not be falling, but they’re rising at a rate closer to what we’d consider normal for the market.
Even though prices aren’t declining nationally, increased inventory means they’re rising more slowly than they were. The trend we’re currently seeing is what’s considered price moderation.
The good news for buyers is that this price moderation is expected to continue throughout the rest of the year, according to a January report from Freddie Mac:
“In 2025, we expect the pace of house price appreciation to moderate from the levels seen in 2024, while still maintaining a positive trajectory.”
This means that home prices will continue rising in most markets, but not as quickly as they did in 2024. This is great news for anyone who’s been priced out of the market thanks to rapid price appreciation these past few years.
These numbers represent national trends, so the true story will vary in individual markets. A local real estate agent can give you the latest details on the market trends in your your own unique area.
Conclusion
Fears of a housing market crash in 2025 abound, but don’t let this worry you. While a little caution is healthy, experts are confident that a housing market crash is unlikely in 2025. As a recent report from Business Insider says:
“. . . economists who study housing market conditions generally do not expect a crash in 2025 or beyond unless the economic outlook changes.”
In reality, this year’s housing market is stabilizing thanks to decreasing price growth and increasing home supply. If you’re curious about the market trends in your local area, contact us today to connect with an agent who can reassure you with the facts.
It’s Tax Day – Here’s How a Refund Can Help You Save For a Home
If you’ve been planning to buy a house, you know how hard it can be to save for a home. What you might not know is that your tax return can be a helpful boost to your savings and budget. According to a recent post by Freddie Mac:
“ . . . your tax refund from the IRS can be a useful supplement to your homebuying budget.”
So if you’re planning to get a tax refund this year, consider the difference that extra funding can make. A refund can help you pay for the upfront costs of homebuying, like a down payment or closing costs. And, according to the IRS, your tax refund may even help you out this year more than ever.
How a Tax Return Can Help You Buy a Home in 2025
Recent data from the Internal Revenue Service (IRS) has found that the average individual’s refund is 3.9% higher this year. And while that’s not a huge increase, it can make a big difference if you’ve been struggling to save. The graphic below visualizes the new IRS data, comparing the average tax return in March 2024 to March 2025.
Your own personal tax refund will likely vary, but any financial boost helps when you’re saving for a home. According to Freddie Mac, the following are several ways you can put your tax return to good use when homebuying:
- Saving for a down payment – A down payment on a home is often one of the biggest obstacles to homeownership that buyers face. Saving your tax refund for a down payment can be a smart way to make this major step easier. Keep in mind while a 20% down payment may be common, it’s not typically a hard requirement to buy.
- Paying for closing costs – Usually due at closing, closing costs include fees for services like the appraisal, title insurance, and underwriting of your loan. While these vary by state, they’re often between 2% and 6% of your home’s total final purchase price. As a much lower percentage of your home’s price, closing costs can be a great use of your yearly refund..
- Lowering your mortgage rate – Lenders sometimes give buyers the option to buy down their mortgage rate if they qualify. This allows buyers to pay an upfront fee to lower their initial mortgage rate, reducing monthly payments in the short-term. This option can be particularly helpful if interest rates and mortgage payments are a major homebuying hurdle you’re facing..
Financially speaking, this may be more complicated in practice, but there’s no need to do it all on your own. Working with an experienced, trustworthy real estate professional can simplify your financial planning, helping you reach the best decision possible. An agent who understands the homebuying process, your unique financial needs, and your personal goals can make all the difference.
Conclusion
If you’ve been saving for a home, you already know well that every penny counts. Your tax return probably won’t be the final financial boost you need, but there are ways to use it effectively. Planning and identifying how to best spend that money can give you a real, meaningful step toward buying your home.
Are you eager to buy a home but having trouble making things work? Contact us today. We can connect you with local lenders and agents to help make your dream of homeownership a reality.
Selling Your Home? Avoid This Mistake When Setting Your Asking Price
When selling your house, the typical goal is to sell quickly at the best price possible. Naturally, ever since home prices took off around 5 years ago, most sellers have been aiming high. But housing inventory is making a comeback, and some sellers haven’t considered what this shift means for their asking price. As a result, buyers are becoming choosier, and price cuts on overpriced listings are increasing alongside home supply.
According to February 2025 data from Realtor.com, home price cuts this February reached their highest number since 2019. That’s the highest number of price cuts in 6 years, and a real return to pre-pandemic market levels.
Given that 2019 is considered the housing market’s last normal year, this demonstrates a major, substantial shift. The market is finally starting to normalize, and may quickly break out of the post-pandemic slump it’s been stuck in.
However, this is a distinctly different trend from the hot seller’s market of 2021 and should be treated differently. You may not sell your house for top dollar like you would have at the pandemic’s peak, but that’s okay. By setting a smart asking price and tempering your expectations, you can still sell quickly, and at a great price.
You may be planning to price your listing high and cut it later if necessary, but this has its drawbacks. Pricing too high and lowering later means you may actually end up with lower offers in the end. Pricing right the first time is the best way to avoid this, and a local agent can make the difference.
How a Local Agent Can Find Your Perfect Asking Price
A true expert real estate agent doesn’t set an asking price without good reason. These agents consider real data and trends unique to your market, setting a price specific to your home. This way, you set a realistic price based on your home’s true value to attract as many buyers as possible.
Depending on your local market and your agent’s analysis, they may even recommend strategically pricing slightly below market value. While this may sound counterintuitive, it can be a strategic move to attract more attention to your listing, earning you more competitive offers. Here are a few ways a local agent will determine the best price for your listing:
- Researching recent home sales. What price did homes similar to yours finally sell for? Were these homes initially listed higher before dropping in price to sell?
- Analyzing local market trends. The true value of your home isn’t based on the price you’d like to sell it at. It’s the price that potential buyers are willing to pay. A local agent will have a strong idea of this number based on experience.
- Strategizing to sell. A great agent will price your home to attract attention, creating a sense of urgency among buyers and increasing demand.
How Overpricing Your Home Can Backfire
Unfortunately, some sellers still ignore their agent’s advice and prefer to start high just to see what happens. The hope being maybe they get their full asking price, or they at least have more wiggle room for negotiation. But pricing high usually ends up costing you, and here’s why:
- Buyers may ignore it. The market’s past few years – and the direction it’s headed – have made buyers more budget-conscious than ever. If a home listing looks overpriced, buyers are more likely to ignore it and move on than consider negotiating.
- It could stay on the market too long. The longer your home sits on the market without selling, the more buyers will assume something is wrong with it. This can make it harder and harder to sell as time goes on, and makes a price cut almost inevitable.
- You may sell for less in the end. Price cuts often lower a listing’s final selling price below its best, most realistic market value. Listing at the right price to begin with gives sellers the best chance of selling quickly at a great price.
The graph below demonstrates how these factors play out in the market. Using data from the National Association of Realtors (NAR), it shows how time on the market lowers final selling price.
According to the data, if a house sells within its first 4 weeks after listing, it usually sells for full price. Homes that are priced at or just below current market value typically sell quickly in this same window. When a home is priced right, it attracts truly interested buyers who are willing to buy at your asking price. In a hot market, buyers may even compete with other buyers, or even make an offer above your listing price.
On the other hand, a home that’s overpriced will take longer to sell, if it sells at all. As the graph demonstrates, after that first 4 weeks on the market, final selling price starts to drop. And as buyer interest declines over time, the more likely a seller will accept a low offer, or cut their price.
Conclusion
The housing market is normalizing thanks to increasing housing inventory, causing price cuts to rise with increasing buyer power. For sellers, setting the right asking price is more important than ever, and overpricing could make your listing sit on the market. Advice from a local agent can help you avoid this mistake and sell quickly without having to lower your price.
Interested in selling but need help pricing your home for your local market? Get in touch with us today. We can connect you with a local agent who can sell your home at the best price possible.
The Spring 2025 Housing Market: 4 Things To Expect
Spring is in full swing, and the spring 2025 housing market is swinging along with it. Wondering whether now is the right time to finally buy a house or sell your home? Here are four trends you can expect in the market this year, and what they mean for you.
1. More Homes on the Market
After years of housing shortages nationwide, the number of homes for sale is finally improving. According to recent national data from Realtor.com, active home listings are up 27.5% compared to this time last year. Housing inventory took a tremendous dive in 2020, but at long last, it’s close to reaching pre-pandemic levels this spring.
The graph below shows monthly active listing count for each year dating back to 2017. As you can see, even though inventory levels still haven’t quite returned to pre-pandemic norms, they’ve improved over last year. In fact, they’re almost at 2020 levels, and will likely exceed them this summer if their upward trend continues.
For Buyers: More housing inventory means you have more options and choices. Having options means you can be more selective, and that sellers may be more willing to negotiate with you.
For Sellers: With more homes available, you’re more likely to find the right house to move into. With inventory still below normal levels, your current home will stay in higher demand, at least until home supply normalizes.
2. Home Price Growth Is Slowing
As inventory increases, the rate of home price growth is slowing down as prices respond to buyer demand. This will continue through the spring 2025 housing market and beyond into 2026 if the current trend holds steady. With more homes for sale, eager buyers are less pressured to compete for limited inventory. Price growth will continue to slow as supply rises and buyers enjoy more options, but it will generally remain positive. A recent projection from Freddie Mac says:
“In 2025, we expect the pace of house price appreciation to moderate from the levels seen in 2024, while still maintaining a positive trajectory.”
Every housing market is different, so while home prices are rising nationally, this may not be true everywhere. Some markets are actually seeing stronger price growth, while others are slowing or even seeing home prices decline.
For Buyers: Slower home price growth means prices aren’t rising as quickly as before. Still, any home you buy now is likely to appreciate in value over time, helping you build equity.
For Sellers: Home prices are still rising, but you may need to temper your expectations in terms of pricing your home. Pricing too high in a more competitive market could mean your house takes longer to sell. Listing at a price point competitive with your local market is going to become a key factor as prices normalize.
3. Mortgage Rates Are Falling and Stabilizing
One of the biggest obstacles for buyers – especially new ones – since the pandemic has been higher, less predictable mortgage rates. Fortunately, rates have been slowly stabilizing so far in Q1 of 2025, and have even dropped faster than experts anticipated. These aren’t the 3% rates of 2020, but less volatile rates give buyers more reason to buy with confidence. As Chief Economist at CoreLogic Selma Hepp says:
“With the spring homebuying season upon us, the recent improvements in mortgage rates may help invite homebuyers back into the market.”
For Buyers: When mortgage rates are stable, planning ahead is easier because your future payments are likely to be more predictable. But keep in mind that even though mortgage rates are stabilizing, they’re still far from being completely static. When buying, consult your agent and lender to stay current with rates and how they might affect your plans.
For Sellers: Lower rates starting to stabilize means more buyers are becoming active – especially those who have been patiently waiting. This means increases in housing demand and more potential interested buyers for your house.
4. More Buyers Are Entering the Market
With more inventory, slowing price growth, and stabilizing mortgage rates, buyers are gaining confidence and finally reentering the market. Demand is increasing, and recent data from the Mortgage Bankers Association (MBA) shows an uptick in mortgage applications compared to the start of the year.
For Buyers: The spring 2025 housing market buying season is quickly heating up. Making your move now and getting a leg up on your competition could be a wise strategy this spring.
For Sellers: Eager buyers wanting to buy a home in the spring or summer are entering the market quickly. Naturally, this is great news for you: more buyers means a better chance of selling your home fast.
Conclusion
Between more homes for sale, slowing price growth, and stabilizing mortgage rates, there’s plenty reason to be positive this spring. Buyers can expect higher housing inventory at more reasonable rates, while sellers can count on a busier market with more activated homebuyers. If you’re wondering how this spring’s trends might affect you, contact us today to get started with an expert agent in your area.
