Are Your Homebuying Tactics Outdated? Experts Share 5 New Rules for Buying a Home in 2025

In recent years, the housing market has been like a roller coaster. Rates have gone from around 3% and remain stuck near 7%, list prices skyrocketed and then came to a halt, and competition went from super stiff to almost nonexistent. With all this change, how are buyers supposed to keep up?

Lucky for buyers, Ebonee Johnikin, a real estate agent based in Laurel, MS, says that things are looking good for buyers these days.

“Compared to last year, the market definitely has some upsides for buyers,” she notes. “Some of these benefits are subtle, but they do add up.”

Still, many buyers have come into 2025 wondering: What’s the best way to approach the market?

Here are five old rules that no longer apply to the current real estate market—plus new ones that will take their place this year.

1. Old rule: Housing inventory is low, so don’t be picky

New rule: There are more homes on the market; you have plenty of options

Real estate inventory has been sparse in recent years, but new listings and active listings have been increasing since the beginning of the year. In fact, a recent report found that the number of for-sale homes is up a whopping 27.6% from this time last year.

Further, compared with last year, the inventory of homes for sale increased in all of the largest metros, according to the Realtor.com® January 2025 Monthly Housing Market Trends Report. The markets with the most inventory growth were Denver (+54.8%), Las Vegas (+49.4%), and Tucson (+45.0%).

Those numbers grew in February. There were 27.5% more homes actively for sale on a typical day in February compared with the same time in 2024, marking the 16th consecutive month of annual inventory growth, the Realtor.com February 2025 Monthly Housing Market Trends Report found.

Amber Brown, a real estate broker in Waco, TX, confirms she’s seen an uptick in inventory in her area.

“Every one of our markets shows an extremely high number of active listings,” she says, noting that she’s seen a 20%-40% increase overall.

With that in mind, Brown advises today’s buyers not to settle for a property if it doesn’t tick off all their boxes.

“There are multiple homes for you to choose from, so take your time and choose the right one for you,” she suggests.

2. Old rule: There’s little room for negotiation with sellers

New rule: With few buyers in the market, most sellers are willing to negotiate

Those who went house shopping in 2020 and 2021 will remember the fierce competition and seemingly endless amounts of buyers. In many areas, open houses were packed, even unrenovated homes fetched multiple offers, and many homes sold for over the asking price.

But things are different now.

These days, there aren’t a ton of buyers, partly due to high mortgage rates, explains Jonathan Spears, a Florida real estate agent and the founder of Spears Group at Compass.

“Right now, with rates where they are, there’s often less buyer competition, which can open up opportunities to negotiate better terms,” he explains.

Alex Platt, a real estate broker in South Florida agrees, saying that now is a good time to make a deal for a lower purchase price or to get the seller to throw in repairs, furniture, or home cleaning costs.

“There are less buyers now than in previous years, so there are more deals to be made,” he explains. “With homes sitting on the market longer than they were in the past, sellers have been more willing to negotiate.”

3. Old rule: Homes are selling fast—so make an offer ASAP

New rule: Homes are on the market longer; take time to consider your options

With so many homes on the market these days, and not as many buyers, it’s no surprise that homes are sitting on the market longer. The Realtor.com January 2025 Monthly Housing Market Trends Report notes that the typical home spent 73 days on the market this January—that’s five days longer than the average in January 2024.

Brown confirms that homes are taking a while to sell in Waco: She’s seen houses sit on the market for “at least 10-30 days more” than this time last year.

Johnikin reports that there’s still competition for some homes, but “it is not as fierce as in previous years.” She says some people still need to act quickly to get into the more sought-after homes, but overall, “there’s a little more breathing room.”

4. Old rule: Rates are high, but they’re expected to drop soon

New rule: Rates are expected to stay about the same, so don’t wait for better numbers

Back in 2023, mortgage interest rates reached up up to 8%. Since then, rates have been trending down, sticking to the low 7% and high 6% range in 2024.

But experts say the numbers probably won’t go much lower. The Realtor.com 2025 Housing Forecast predicts mortgage rates to be “slightly lower” than they were last year, with an average monthly rate of 6.3% and a year-end rate of 6.2%.

Johnikin says these rates could be fine for some buyers—but “overwhelming” for others.
She explains that in areas where housing prices are low, a 6.5% rate may be completely manageable. But in neighborhoods with high market values, “interest rates are something we can’t ignore.”

5. Old rule: Date the rate, marry the house

New rule: Find a home you like and can afford–and hope for a price break later

Crystalle Guss, a Realtor in Denver, explains that, for a while, many people were shopping with a “buy now, refinance later” strategy in mind. This means that, while buyers knew they’d be stuck with a high rate for the short term, they’d eventually refinance when rates were lower, and enjoy a cut to their monthly payments.

But, even if rates drop to the low-6% range, Guss says this tactic might not make sense. After all, fees associated with refinancing might be higher than the savings. 

She says it’s also worth noting that this predicted rate decrease isn’t enough to justify waiting to buy a home. She says the smart choice would be to take advantage of the market’s current surplus of homes, find one you really love (and can afford), and pounce before more buyers enter the market. 

If rates go way down in the next few years and you refinance then, great! Otherwise, at least you’re building equity now.