Market Retraction & What it Means for You
Why Buying Now Could Be the Smartest Move You Make
Thinking about buying a home in 2025? Starting early—like right now—might save you thousands and set you up for long-term success. Here’s why acting sooner rather than later could work in your favor:
Price Appreciation Benefits: Homes are projected to appreciate 27.16% over the next five years. A $500,000 home bought today could grow to $635,800 by 2029—that’s a gain of $135,800. Even in the short term, 2025’s projected home price appreciation is 3.78%, which means that same $500,000 home would increase in value by $18,900 within the year.
Lower Competition Today: The current market slowdown offers a unique opportunity. Sellers with homes sitting longer on the market might offer closing cost assistance, price reductions, or even incentives to make the deal work before the spring rush. For example, buying now might save you $5,000–$10,000 in concessions that would disappear when competition heats up.
The Cost of Waiting: If you wait until spring, that same $500,000 home could be caught in bidding wars, forcing you to offer above asking price—say, $525,000 or more—and skip contingencies like inspections to compete. And while rates might drop slightly, experts predict they’ll average 6.34% in 2025. A lower price today with higher negotiation power may outweigh waiting for marginally lower rates.
Renting vs. Buying: What Are You Paying For?
If you’re currently renting, consider this:
A $500,000 home might rent for $3,500/month. Over 12 months, that’s $42,000 paid to your landlord—money that could have gone toward your own equity.
Owning Builds Wealth: Even with a low down payment option like 3–5%, every mortgage payment you make builds equity and moves you closer to owning your home outright.
The Myth of 20% Down: You don’t need 20% down to buy a home. Programs exist for as little as 3% down for conventional loans or 0% for VA and USDA loans. Plus, many lenders offer down payment assistance or first-time buyer incentives.
Renting for Now? Plan for Later: If buying in 2025 feels too soon, use this year to budget and save. Talk to a lender to determine how much you’d need to save monthly to buy in 2026. Starting with a plan keeps you ahead of the game when the time comes.
What You Could Be Gaining—or Losing—By Waiting
Consider this scenario:
Buying a $500,000 home today at 7.125% with $5,000 in closing cost concessions means you start building equity immediately.
Waiting until spring, you might face more competition, resulting in paying $525,000 for the same home while rates hover at 6.34%. That higher purchase price could add $40,000–$50,000 in interest costs over the life of your loan.
Even if you’re unsure about buying now, you’re losing out on appreciation. That $500,000 home is projected to increase by $18,900 in 2025 alone.
What About Sellers? Is It the Right Time?
If you’re thinking of selling, the low inventory means it’s still a great time to list.
Inventory is Tight: Denver metro has just 7,984 active units, which translates to 2.9 months of supply—far below the six months needed for a balanced market.
Location Matters: Homes in the inner-ring suburbs and landlocked areas remain hot, while outer-ring suburbs and new construction are slightly cooler.
Strategic Planning for 2025: Listing your home as the market picks up after President’s Day could yield maximum exposure and offers.
How Real Estate Builds Wealth
Buying a home isn’t just about where you live—it’s one of the smartest financial moves you can make.
Equity Growth: As home values rise, you build wealth. A $500,000 home could grow by $135,800 in five years.
Stability: Fixed mortgage payments protect you from rising rents and give you long-term financial predictability.
Tax Benefits: Homeownership offers tax deductions on mortgage interest and property taxes that renters don’t get.
Planning Your 2025 Goals
Whether you’re looking to buy, sell, or simply prepare for a future purchase, now is the time to start planning. Here’s how:
If Buying in 2025: Talk to a lender today to see what loan programs you qualify for, how much home you can afford, and what you’d need to save monthly to hit your down payment goal.
If Selling in 2025: Let’s connect to create a plan for maximizing your home’s value and timing your sale for peak market activity.
Let’s Make 2025 the Year You Achieve Your Real Estate Goals
Ready to start your journey? Whether you’re buying, selling, or just exploring your options, I’m here to help you navigate the market, answer your questions, and set you up for success.
Start now—because the best investments are the ones you don’t wait for!
*SOURCES: KeepingCurrentMatters, ShowingTime, the fabulous Megan Aller (Stats/Title) & Nichole Rueth (Lending), Colleagues, News Sources, & More!
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