06/17/2025
Lately, people have been asking me, “Is now a good time to buy a house?” And I’ll be honest with you… it’s a tough question with no simple answer. As a Realtor, I study this market every day. But as a husband, a dad, and someone trying to make wise financial decisions for my own family—I feel it just like you do.
Nationwide, the housing market has started to shift in a big way. For the first time since the 2008 crash, sellers are outnumbering buyers—by over 500,000 homes nationwide. Inventory is rising fast, and prices are starting to come down in over 60% of the country. We’re seeing homes sit longer. More price cuts. More sellers forced to negotiate. And for the first time in years, buyers are beginning to regain leverage.
But let’s be real: just because the national market is softening doesn’t mean homes are suddenly cheap. Affordability is still a huge challenge—especially with interest rates hovering around 7% (6.5% for VA/FHA). The typical monthly payment is near an all-time high, and many families (mine included) are feeling that strain deeply.
In Central Illinois we are not feeling this flip. Although home sales were down by 9% (May) year over year I believe this is due to the lack of homes being offered for sale. I am still seeing many homes go for 30k or more over asking price. 70-90% of homes are sold within the first week of being listed, and in many cases the same day. Housing affordability in our area continues to fall.
To me it looks like sellers are only willing to give up their low interest rates if the home price is too large to refuse. They are pulling so much equity out of the deal and that is great for the sellers. This is not so great for desperate buyers.
The 2008 crash is known for mortgage delinquencies and subpar lending practices however the core cause was negative equity. This is what I see as the biggest risk. If home prices fall many who bought homes this year are risking owing more than their home is worth. Redfin has downgraded their 3% home price increase to a 1% decrease. Although this is practically flat it is a big unforeseen swing.
My usual advice has always been to buy a home when you’re financially ready, you plan to stay in the home for a minimum of 6 yeas, and you are emotionally prepared—not based on fear or pressure. That advice hasn’t changed. If you absolutely must buy right now I highly suggest having 20% down and 3-6 months of expenses for an emergency fund. This will hedge your risk and allow for market fluctuation.
For my own family, we’ve decided to wait. We’re holding out for either a truly great opportunity to come up—or for the market to shift in a more favorable direction. That shift may take months... or even years. And I’ll be honest—it’s hard. We feel the weight of waiting. The desire to settle. The frustration of watching prices climb while inventory stays tight.
But I also believe that patience is part of the process. You deserve more than just a house—you deserve the right house, at the right time, without compromising your future.
If you’re in that same boat—waiting, watching, wondering—just know this: you’re not alone. Whether you’re ready to buy now or you’re choosing to wait like we are, I’m here to walk with you every step of the way.
The market may go up. It may go down. But peace of mind, wisdom, and financial readiness should always be part of the equation.
A bit on the Condo market collapse:
While most eyes are on single-family home prices, the condo market is quietly struggling. Listings are up 83% compared to offers, but that doesn’t necessarily mean condos are a smart buy right now.
Why? Rising HOA and maintenance fees, strict rules, and limited flexibility make condos less appealing long-term. Unlike single-family homes, you often can’t customize or expand freely. As a result, condos may be cheaper to buy—but harder to sell and slower to appreciate in value.
A bit on Interest rates: Do not expect any cuts following the Feds meeting today and tomorrow. Our next opportunity will be September, so you can count on little change until then. We will talk more about this as September approaches.
Philippians 4:6 do not be anxious about anything, but in everything by prayer and supplication with thanksgiving let your requests be made known to God.
If you made it this far, please drop a comment or question below and I will be sure to reply.
https://www.livenowfox.com/news/housing-market-sellers-buyers-outnumber-prices-decrease-redfin-2025?utm_source=substack&utm_medium=email
