Key takeaways:
- If you have the means, now may be a good time to buy a house.
- Mortgage rates have lingered near 14-month lows, giving homebuyers a longer window of affordability.
- It’s a buyer’s market-there are 530,000 more home sellers than buyers -empowering home buyers.
- However, most consumers are be careful due to record high home prices, a sluggish job market, and economic uncertainty, leading to a volatile housing market.
The years may have changed, but the housing market hasn’t. After a very little 2025, the same lazy styles persist into the new year: fewer home sales, limited listings, and record prices. Economic uncertainty adds to the difficulty.
But there is a silver lining. Mortgage rates maintained their monthly gains and are forecast to remain low through 2026, helping homebuyers pay thousands more than they would have a year ago.
A lot is changing, so it’s no surprise that buyers are wondering if now is the right time to make the jump.
In short, whether it’s a good time to buy a house or not comes down to when it’s a good time yours buying a house. Let’s dive deeper into today’s market trends to help you answer: “Should I buy a house now or wait?”
From Redfin’s Chief Economist
“Now is a great time to buy a home, if you can afford it. Prices keep going up, putting people out of the market and giving buyers the upper hand in negotiations. An uneasy economy makes everyone wary, however, and local housing markets are highly variable. Buyers who are interested in selling should contact a local agent and be sure of their finances and future income.” – Daryl Fairweather, Redfin Chief Economist.
What buyers need to know about the housing market
Here are some important market trends to keep an eye on and help you make an informed home buying choice.
Home prices are high and can go up a lot
The median US sales price is $429,000—up 0.6% from last year. House prices have posted year-on-year gains for more than two years and are 30% higher than five years ago..
Because accessibility has become more difficult, many prospective buyers are holding on for better deals, causing inventory to build up. Marketers are just starting to notice, with More pulling their homes from the market in response. This push-pull dynamic keeps prices high and reduces demand.
Redfin predicts that prices will increase slightly this year, which should help affordability improve as wages rise.
>> Read: Redfin’s Weekly Economic Breakdown
Mortgage rates continue to decline steadily
As of January 6, the 30-year weekly average has been adjusted mortgage rate it sits at 6.20%—down from last week and in line with long-term declines.
“Mortgage rates have been trading between 6.1%-6.3% for months, and we expect this to continue into 2026,” said Chen Zhao, Head of Economic Research at Redfin. “A weak labor market will lead the Fed to lower interest rates this year, but inflation and the risk of a recession will prevent major economic growth. On the other hand, home buyers are enjoying much lower rates than this time last year – when they were 7% higher – which should continue until spring.”
Redfin predicts that mortgage rates will reach 6.3% by 2026.
>> Read: Mortgage rates are falling. Here’s What Home Buyers and Sellers Should Do So
How mortgage rates affect housing costs
Mortgage rates are important to consumers because they translate directly into monthly housing costs. The higher the rate, the more you pay each month. If prices drop, you can save tens of thousands during the life of your mortgage.
Let’s see how your monthly payments change at different rates, using our data Mortgage Calculator.
Consumers have the upper hand
It’s the strongest buyer’s market in years: Housing inventory has he woke up from its post-pandemic low, especially in the South, which gives buyers bargaining power. However, supply is still limited to parts of the Midwest and East Coast, putting retailers in charge again which increases prices.
Often, however, high costs keep buyers on the sidelines and freeze home sales. Some homes are forced to be built great sacrifices such as giving up a pet or delaying a divorce to get a place to live. Younger generations they are hit hard and often turning to the family for help.
Let’s dig a little deeper into the data and look at two key market indicators.
Inventory is high, but falling
There are approximately 1.7 million homes for sale today– historically low but one of the highest December levels since the pandemic. This is the main driver behind today’s buyer’s market. Florida and Texas have the most homes on the market today, by far.
Home inventory is high because a greater proportion of sellers are listing their homes than buyers are buying them, with a large disparity in disaster-prone areas. in Florida. This gives today’s consumers more power permission.
But many sellers are now starting to pull back after realizing they won’t be able to fetch top dollar, which is starting to reduce housing stock. Building a home again he dived in 2025.
The demand is close to the lowest price
Even with low prices and more homes on the market, consumer demand remains subdued due to high housing costs and economic uncertainty. Annual NAR Profile of Domestic Buyers and Sellers supports this: First-time buyers are older, more expensive, and younger and middle-aged.
For buyers on a budget, this can be a good time to enter the market, as sellers may be more open to negotiate.
However, there are exceptions. In cities like New York Rochester again Buffalostrong demand for affordable housing it drives up prices and empowers sellers. The Bay Area sees a rash in popularity, too, and parts of the Midwest.
>> Read: How To Sell Your House In 2025: The Complete Guide
Inflation may rise
Important in the housing market, economists are worried that inflation may increase as a result of changing economic and immigration policies, which may affect loan rates and affordability.
Although inflation has not increased, it has to crawl and remains above the Fed’s target; experts assert that it will continue to rise if policies do not change. In fact, a report found that inflation would not have fallen by nearly a third if it were not for taxes.
Inflation has major implications for consumers. Most importantly, it it can lead to higher house prices and mortgage rates, and to further stretch the budget. If inflation rises, borrowing can become more expensive, making now a smart time to do so lock in value before that happens.
>> Read: The Housing Market Under Donald Trump: What It Could Mean for Buyers, Sellers, and Renters
How to buy in an uncertain economy
With rising prices, economic whiplash, and volatile mortgage rates, many buyers are wary of entering the market. Here are a few tips from our economists about navigating this changing landscape.
- Stick to your budget: This is not a time for financial expansion. The probability of a recession is lower than it has been, but the economy is not stable. Make sure you have enough savings to cover mortgage payments if your income changes.
- show each other, show each other: The market favors buyers, so use your power. There is more inventory, and offers are increasingly coming in under asking.
- Be smart about prices: Mortgage rates are low but still relatively high. Shop around, compare lenders, and ask about “float down” options if prices drop significantly after lock-in.
- Sell before you buy: If you own a home, consider selling it first. It will give you a clear budget and help you avoid the risk of running two debts.
>> Read: How to Buy, Sell or Rent a Home Amidst Economic Uncertainty
Are you ready to buy and own a home?
When deciding to buy a home in today’s climate, you’ll want to think beyond market conditions and focus on your individual circumstances. Here are some personal things to keep in mind.
Financial health
Check your current affairs savings, credit scoreagain debt levels. Can you buying a house? Or you rent make more sense?
Housing is a long-term commitment, so you’ll want a solid emergency fund—one that should cover 3 to 6 months of expenses—for maintenance and unexpected expenses.
Monthly budget
Determine how a mortgage payment at today’s rates can impact your lifestyle. Make sure you can handle it well monthly payments, property taxes, insuranceand so on cost of home ownership.
Work and place stability
Buying a house makes sense if you plan to stay for several years. A stable job or reliable income is essential to avoid financial difficulties, especially if housing prices or interest rates rise significantly.
Choosing your location is also important. Is your home at risk of flooding, wildfires, or something else? weather hazards? This is very important today, as insurance providers continue knocking down the landlords at alarming rates.
Personal goals and timelines
Think about life events, such as starting a family, retiring, or moving. These factors can make home ownership more attractive or more risky if you need to move soon.
Lifestyle preferences
Home ownership comes with ongoing obligations, as well to take care of, to fixagain property taxes. Ask yourself if you have the time, resources, and desire to tackle them.
>> Read: Am I Ready to Buy a Home? 8 Questions to Help You Decide
So, now is a good time to buy a house?
If you have the means and are ready to own a home, now is a good time to be buying a house. Prices are coming down, but with today’s high prices and shaky economy, it’s hard to know what affordability will look like down the line. Waiting for prices to drop leaves you vulnerable to competition between buyers and subsequent price increases from sellers.
In the market this is unpredictable, the best way to fix. Know your budget, connect with a local agent, get pre-approvedand leave as soon as the right home arrives. The longer you wait, the more competition you can see.
