General Community NewsMichigan Community NewsReal Estate Trends February 13, 2025

Top 10 Best Real Estate Markets for First-Time Buyers in 2025

If you’re like many aspiring homebuyers, the rising cost of living might feel like a major roadblock. From groceries to gas, and yes, especially home prices, everything seems to be getting more expensive.

But even in today’s market, there are still ways to make your homeownership dreams a reality. The key is knowing the current best real estate markets and how to approach your first home purchase strategically.

 

Think of Your First Home as a Stepping Stone

One of the biggest misconceptions among buyers is that their first home has to be their dream home. The truth is, your very first home doesn’t need to check every box on your wish list. Instead, think of your first home as a stepping stone to your final destination.

Owning a home allows you to start building equity, which grows over time as home prices increase. That equity can be a powerful tool when you’re ready to upgrade to a bigger home or move to a more desirable location in the future.

Rather than waiting until you can afford your dream home in your ideal neighborhood, consider starting with something that fits your current needs and budget. This approach gets you into the market sooner and may cost you in the short-term, but it sets you up for long-term financial growth. Best of all, it’s a real start to eventually buying your dream home at some point in the future.

 

Explore the Best Real Estate Markets in 2025

If the price of homes in your preferred area are holding you back, it might be worth broadening your search. With some flexibility in location, you can find more affordable options without sacrificing the amenities most important to you. Many first-time buyers find homebuying success by exploring surrounding areas or even considering a move to a different state.

According to a report from Realtor.com, these are the 10 best real estate markets for first-time homebuyers in 2025:

  1. Rochester, NY with a Median List Price of $129,900.
  2. Lansing, MI with a Median List Price of $135,000.
  3. Harrisburg, PA with a Median List Price of $140,000.
  4. Lauderdale Lakes, FL with a Median List Price of $154,850.
  5. North Little Rock, AR with a Median List Price of  $160,000.
  6. Baltimore, MD with a Median List Price of $210,000.
  7. Wilmington, DE with a Median List Price of $222,000.
  8. Altamonte Springs, FL with a Median List Price of $229,400.
  9. Tonawanda, NY with a Median List Price of $229,000.
  10. Villas, FL with a Median List Price of $236.950.

 

Blue and white table showing the cheapest real estate markets by median list price.

 

Realtor weighted their market rankings by several factors including median price, location score, number of home listings, average commute time, and others specified in the full report. If one of these cities is in or near your target home location, it’s worth looking to see what properties are available. Even if you don’t find your dream home, you might find the perfect starter home on the path to it.

 

Stay Local and Look Just Outside Your Preferred Area

If moving to a different state isn’t an option, you can still find affordable homes by expanding your search locally. Sometimes, looking even just 10 to 20 minutes outside your ideal neighborhood can make a significant difference in price. Nearby areas can often offer similar amenities, like access to restaurants, shops, and activities, but at a lower cost.

And the best way to see what’s available is to work with a real estate agent who understands the local market and can help you identify hidden gems nearby. An agent can point you to communities you may not have considered that have lower price tags now and are steadily gaining value and appeal. That way you can buy your first home and be set up to gain equity through the years.

 

Conclusion

Today’s cost of living is a challenge for many homebuyers, but by exploring 2025’s best real estate markets and working with a knowledgeable agent, you can take that first step toward owning a home this year, and building equity for your future.

How far outside your area would you be willing to look to make your homeownership dreams a reality? Connect with us to discuss your options and find the perfect market for your first home.

General Community NewsReal Estate Trends February 11, 2025

Home Price Growth Is Slowing in 2025 – What Does That Mean for You?

Over the past few years, home prices have skyrocketed as demand has increased and supply has stiffened. It’s been a frustrating market for buyers, leaving many to doubt their chances of ever owning their own home. But the early weeks of 2025 have brought welcome news: the pace of home price growth is finally slowing down, and that’s a positive shift for anyone looking to buy a home.

 

Home Price Growth Drops to a Healthy Pace

At the national level, home prices are still rising, but at a much more normal, manageable rate compared to the double-digit spikes we saw in 2021 and 2022. Recent data from Case-Shiller show that in November 2024, the year-over-year increase in home prices was just 3.8% nationally, a clear drop from Pandemic rates:

 

A blue and green bar graph showing national year over year home price increases from 2019 to 2024.

 

What does this mean for you? For one thing, you’re less likely to experience the sticker shock that was common just a few years ago. The days of rapid price jumps that made it difficult to plan or pursue your purchase are behind us, and projected drops in mortgage rates this year paint an even more positive picture. More stable price growth also means that the home you buy today is still likely to appreciate in value over time, helping you build equity and secure your financial future.

 

Real Estate Is Local: Prices Vary by Market

While the national trend is pointing to more moderate price growth, keep in mind that all real estate is local. Some markets are still experiencing strong demand and upward price pressures, while others are cooling off or even seeing declines. For example, smaller, more affordable metro areas are still seeing significant demand and price increases. As CoreLogic Chief Economist Selma Hepp explains:

“Regionally, variations persist, as some affordable areas – including smaller metros in the Midwest — remain in high demand and continue to see upward home price pressures.”

Meanwhile, other regions, particularly those in southern markets, experienced slight month-over-month declines in November, according to Federal Housing Finance Agency (FHFA) data:

 

A blue and green bar graph plotting regional month over month percent change in home values in November 2024.

 

Differences like these highlight the importance of understanding what’s happening in your specific market. National averages can provide a general idea, but they rarely give you the whole picture. That’s where the knowledge and expertise of a local real estate agent can really help. They can help you understand local trends, identify opportunities, and create a buying strategy tailored to your needs and budget. Whether you’re buying in a high-demand market or one that’s cooling off, having a local expert on your side ensures you’re making more informed and confident decisions.

 

Conclusion

Home prices in early 2025 are growing at a more manageable pace, giving you the opportunity to plan your purchase without fearing the rapid price hikes of recent years. Connecting with a local real estate agent can help you navigate your area’s local home market, and make the best decision possible.

If you’re thinking about buying a home, 2025 is shaping up to be a great time to explore your options. Reach out to us today to connect with a local expert who can help you buy with confidence and find the perfect home for you.

General Community NewsReal Estate Trends February 5, 2025

2025 Housing Market Predictions: What Do the Experts Say?

Wondering how the housing market is expected to change in 2025? And more specifically, what it all means for you if you plan to buy or sell a home? As always, the best way to get that information is to consult the pros.

Experts are constantly refining their predictions in response to changes in the market and overall economy. Here’s the latest information on two key factors sure to influence the housing market in 2025: mortgage rates and home prices.

 

Will Mortgage Rates Come Down?

Mortgage rates remain one of the strongest factors influencing the market, and everyone is waiting for them to come down. The real question is: will they drop, and how quickly?

The good news is that mortgage rates are indeed projected to ease a bit in 2025, falling into the mid-6% range on average. But experts say not to expect a return to 3-4% mortgage rates, at least not this year. As Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), says:

“Are we going to go back to 4%? Per my forecast, unfortunately, we will not. It’s more likely that we’ll go back to 6%.”

Other experts agree with Yun’s 6% prediction. They’re forecasting rates could settle in the mid-to-low 6% range by the end of 2025 (see chart below):

A blue and white graph with showing 30 year fixed rate mortgage predictions for the 2025 housing market.

But remember that the market can change quickly, and experts will revise their predictions as the new year continues. Market forecasts are based on what experts know right now. And since everything from inflation to economic drivers have an impact on where rates go from here, some ups and downs are still very likely. So, don’t get caught up in the most exact numbers and try to time the market. Instead, focus on the overall industry trend and on what you can actually control.

A trusted lender and a local agent partner will make sure you’ve always got the latest data and the context on what it really means for you and your financial goals. With their help, you’ll see that even a small decline in mortgage rates can help bring down your future mortgage payment when you decide to buy.

 

Will Home Prices Fall?

The short answer? Not likely. While mortgage rates are expected to ease, home prices are projected to keep climbing in most areas – but at a slower, more normal pace. If you average the expert forecasts together, you’ll see prices are expected to go up roughly 3% next year, with most of them hitting somewhere in the 3 to 4% range. But this is a much more typical and sustainable rise in prices compared to (see graph below):

A blue and green bar graph showing home price forecasts for the 2025 housing market.

If you’re thinking of buying in 2025, don’t expect a sudden drop to score you a big deal. That may sound disappointing if you’re hoping for home prices to come down, but this means you won’t have to deal with the steep increases we saw in recent years. You’ll also likely see any home you do buy go up in value after you get the keys in hand, and this can turn into a great investment over time.

Like many buyers, you might be wondering how it’s even possible that home prices are still rising. The answer all comes down to supply and demand. Even though there are more homes for sale now than there were in 2024, it’s still not enough to keep up with all the active home buyers on the market. As Redfin explains:

“Prices will rise at a pace similar to that of the second half of 2024 because we don’t expect there to be enough new inventory to meet demand.”

Keep in mind that the housing market is hyper-local, so this will vary by area. Some markets will see even higher prices, and some may see prices level off or even dip if inventory is up in that area. In most places though, prices will continue to rise as they usually do.

If you want to find out what’s happening in your local housing market, it always helps to lean on an agent who can explain the latest trends and what they mean for your homeownership plans.

 

Conclusion

The housing market is always changing, and 2025 will be no different. With mortgage rates likely to ease down to the 6% range and prices rising at a slower, more sustainable pace, it could be a great time to finally buy or sell. As always, it’s all about staying informed and making a plan that works for you.

If you’re in the market to buy or sell a home in 2025, let’s connect you with a local agent who can give expert advice on what’s happening in your area and make sure your next move is a smart one.