Buying a house in 2025: your how-to guide
By Abby Badach Doyle, NerdWallet
It won’t be impossible to buy a house in 2025 — just be prepared to play on hard mode.
According to a November 2024 report from ICE Mortgage Technology, the monthly principal and interest payment on an average-priced home is $2,385. While that’s not the highest it’s ever been, it’s still a sharp increase — nearly 80% — from just three years ago. In November 2021, when mortgage rates averaged 3%, the monthly principal and interest on an average-priced home was $1,327 per month.
So here’s the key to buying in 2025: Look ahead, not back. Regret won’t help you budget for today’s new normal.
And with this year’s election also in the rearview mirror, so is some uncertainty among buyers and sellers that historically slows the market during every presidential election cycle.
“People have just been kind of sitting waiting to see what’s going to happen,” says Courtney Johnson Rose, president of the National Association of Real Estate Brokers, an industry group for Black real estate agents. “I’m hopeful that the new year will bring more attention to real estate, more excitement to real estate, and more opportunities for first-time home owners to get in the game.”