I
f you're planning to buy a home in 2025, it's worth considering making your move sooner rather than later. The current market is still skewed towards sellers, with some experts predicting that prices may continue to rise in certain areas. Waiting for interest rates to drop could mean missing out on the home of your dreams.

    According to Robert Washington, Founder at Savvy Buyers Realty, "I think the market will be relatively flat with a potential for modest price increases." Dottie Herman, Vice Chair and former CEO at Douglas Elliman Real Estate, agrees that the market is stabilizing, but notes that housing prices may increase by less than 5% in some areas. She also believes another interest rate cut could happen in 2025, but it won't lead to a surge of buyers.

    One key factor to watch is falling interest rates. While they're not necessarily a cause for concern, you'll need to lock in at the right time and make an offer quickly to avoid losing out to cash buyers. Red flags to be aware of include homes that require extensive repairs, sellers who want you to waive a home inspection, and buyers who aren't pre-approved or try to negotiate beyond repair costs.

    Experts advise against locking into a 30-year fixed-rate mortgage if interest rates are likely to drop further. Instead, consider an adjustable-rate mortgage, which can be cheaper upfront. However, make sure the top rate is one you're comfortable with. Getting a mortgage pre-approval is crucial, but don't sacrifice your lifestyle for a big home – prioritize what's truly important to you.