Many First-time Buyers Waiting Until 2025
Deciding whether to buy a home now or wait is a significant choice. Engaging with a local real estate expert can provide clarity on the current market conditions, interest rates, and neighborhood trends. The Porchlight Real Estate Team is equipped to guide you through this process, helping you understand the best timing for your purchase based on your specific circumstances.
As the end of the year approaches, a noticeable trend is emerging among first-time homebuyers: a significant number of prospective buyers are putting their plans on hold until 2025. While some sales have seen upticks in recent months, housing purchases have notably slowed as we head into the election period and the holiday season. Here’s why 2025 has become a target date for many—and what this could mean for the housing market.
Waiting Out Election Season
Presidential election years often bring a certain level of uncertainty to the market, and 2024 is no exception. In a recent Redfin survey, 23% of people planning to buy a home in the next 12 months indicated they would hold off on purchasing until after the November election. The rationale for waiting varies, but a primary concern is the impact each candidate's housing policies could have on affordability. Many are waiting to see if elected officials will implement policies aimed at making housing more affordable—though, realistically, these changes won’t take effect immediately. Still, there’s hope that by waiting, they’ll benefit from a market that may be more favorable to first-time buyers.
Financial Strategies and the Appeal of 2025
Current market conditions indicate that buyers and sellers are unable to fully appreciate certain features of properties, as many potential buyers are postponing their decisions until 2025 to gauge future trends in the housing market. This uncertainty presents a unique opportunity for buyers today, as now is an excellent time to purchase before competition increases and inventory begins to dwindle.
The most common reason for delaying, however, has less to do with politics and more with financial planning. Many first-time buyers are looking to stay on track with financial goals set specifically for 2025, including saving for a down payment, improving credit scores, or tackling existing debts. Others are waiting for 2025 simply because it better aligns with personal circumstances, such as aligning with a co-borrower’s financial strategy or waiting until other family members are ready to move forward together.
By giving themselves extra time, buyers feel they can enter the market with greater financial stability. They’re strategically taking advantage of this waiting period to build stronger buying power, which can be critical in competitive markets.
What This Means for 2024 and Beyond
While the current market may see fewer first-time buyers in the coming months, the backlog of prepared buyers could make 2025 a busy year. Sellers and agents alike should be aware of this dynamic shift in timing. And for those who are ready to buy now, the remainder of 2024 may offer an advantage, with less competition and potentially more favorable negotiations.
In short, 2025 could mark a high point for first-time homebuyers entering the market with solid financial strategies and the benefit of informed timing. For those who are ready to buy now or considering a 2025 timeline, the Porchlight Real Estate Team is here to help with expert guidance at every stage of the process.
