Experts Say Buyer’s Market Makes Now a Good Time to Buy a Home

For years, would-be homebuyers have been advised to hold off.

The guidance was familiar: wait for home prices to fall, mortgage rates to retreat toward their pandemic-era lows and monthly payments to become easier to manage.

The trouble with waiting for every piece of the housing market to line up is that it may never happen. In the meantime, buyers could miss opportunities that are already emerging.

Mortgage rates remain above 7 percent—a figure that would have seemed extraordinarily high during the Covid-era housing boom.

However, broader changes in the US housing market may be creating more favorable conditions than the headline 30-year mortgage rate alone suggests.

Realtor.com senior economist Hannah Jones told the Daily Mail that the national housing market has moved toward greater balance, with some regions now offering buyers conditions not seen in several years.

That shift includes more homes for sale, greater negotiating room and sellers who are increasingly prepared to work with buyers—a significant change from the recent seller-dominated market.

Jeff Lichtenstein, founder and broker of Echo Fine Properties in Florida, told us that homes are spending more time on the market. He is also seeing inventory increase, sellers reduce prices and buyers secure concessions such as help with closing costs, repairs or mortgage rates.

Put simply, buyers may finally be regaining something that has been in short supply for years: bargaining power.

The latest Redfin figures provide a telling indication of how much negotiating leverage buyers may now have.

More than 21 percent of sellers with active listings reduced their asking price during the four weeks ending September 20, Redfin reported. That was the highest share recorded for this point in the year since 2022.

The figures do not mean that every seller is suddenly cutting tens of thousands of dollars from a home’s price.

They do, however, highlight how far the market has moved from the recent frenzy, when buyers regularly competed in bidding wars and sellers often received offers above the asking price.

Redfin also found that nearly half of US homebuyers are receiving some type of seller concession, including funds for repairs, assistance with closing costs or a reduction in their mortgage rate.

Jones said buyers who are hesitant to enter the market should consider the value of these concessions. They can improve the overall deal, even when average mortgage rates remain high.

There is, though, a crucial limitation. Jones cautioned that ‘affordability remains the real barrier,’ especially for younger and first-time buyers.

With mortgage rates above 7 percent, many Gen Z and first-time buyers continue to face significant financial pressure, Jones told us.

‘For those with some financial flexibility, whether that’s savings, family support, or improved income, this moment is worth a closer look,’ Jones said.

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Rather than rushing into a purchase, buyers should examine what is available in their area, how much they can negotiate and whether they qualify for schemes that can help with a deposit or loan.

‘A softening market creates space to explore options without pressure,’ Jones said.

‘The goal isn’t to push hesitant buyers into something they can’t afford, but to help those who may have counted themselves out understand the market has shifted in their favor in many areas.’

One reason buyers remain on the sidelines is that many are still hoping for a return to the extraordinarily low mortgage rates of the pandemic.

A recent survey from real estate firm Cotality found the median 30-year mortgage rate buyers said would persuade them to return to the market was 4.6 percent. 

Fannie Mae, the Mortgage Bankers’ Association and Wells Fargo all expect average rates to remain well above 6 percent for at least the next two years.

Lichtenstein told the Daily Mail that buyers have an advantage today precisely because sellers are more willing to negotiate.

‘The advantage right now is that sellers are motivated to make a deal,’ he said. ‘I’m seeing more rate buydowns and other strategies. More and more inventory is becoming available.’

Lichtenstein also warns buyers not to assume today’s rates are the peak in the mortgage market. 

‘A 7.5 percent rate might look pretty cheap a few years from now,’ Lichtenstein warned. ‘If rates do go down, you can always refinance. But if they rise to 9 percent, then you’re out of luck.’ 

That doesn’t mean homebuyers should take on a mortgage they cannot afford. But it does challenge the idea that waiting is the safest financial decision.

For those struggling with prices, Lichtenstein suggests being flexible about where and what they buy.

‘Fixer uppers and living in a town one or two counties over sometimes can get you into a better price point as well,’ he said.

Cotality’s research suggests buyers are already making compromises – cutting spending, considering smaller properties or looking beyond their preferred neighborhoods. 

In fact, 28 percent of recent buyers surveyed by Cotality said they moved to a different area in search of more affordable housing.

Cotality found that 78 percent of Gen Z homebuyers would cut spending to afford a home, while 74 percent would consider buying a smaller property.

There’s also a point at which life makes waiting to buy challenging.

‘Life happens. Marriage. Babies. It’s impossible to pause forever. Shelter and owning a home is a basic need,’ said Lichtenstein.

The ability to negotiate can help you make the numbers work.

‘It’s worth checking what’s actually available, what negotiating power looks like in your area, and whether the math could work with programs designed for first-time buyers,’ Jones told us.

That strongly suggests that waiting for the perfect mortgage rate is less important than finding the right home at the right price.