Buyers

The $27,000 Pricing Gap: What Buyers and Sellers Need to Know

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If you’re planning to buy or sell a home in 2025, there’s a key trend you need to know: buyers and sellers aren’t seeing eye to eye on price. A recent Clever Real Estate survey revealed a $27,000 gap between what buyers expect to pay and what sellers hope to get. Buyers are budgeting around $386,507, while sellers are aiming for $413,976.

So, what’s driving this pricing gap, and how can you navigate it? Let’s break it down.

What’s Behind the $27,000 Pricing Gap?

Sellers Are Riding High on Confidence

After years of rising home prices, sellers are entering 2025 with optimism. In fact, 74% of sellers believe they’ll sell at or above asking price. However, with market conditions stabilizing, these high expectations may not always align with buyer budgets.

Buyers Are Feeling the Pinch

On the flip side, buyers are grappling with rising mortgage rates and affordability challenges. Nearly 68% worry escalating prices will delay their purchase plans. Budget constraints often lead to tougher negotiations or missed opportunities.

While 87% of buyers and sellers expect strong demand in 2025, housing economists predict smaller price increases compared to previous years. This stabilization could mean buyers have more negotiating power, while sellers might need to rethink pricing strategies.

Tips for Buyers: How to Bridge the Gap

Navigating the $27,000 gap can feel overwhelming, but these strategies can help:

  • Know Your Market: Research local home prices and trends. Being informed gives you an edge in negotiations.
  • Be Flexible: If you can’t meet the asking price, consider other ways to sweeten your offer, like flexible closing dates or waived contingencies.
  • Leverage Stabilizing Prices: Slower price growth in 2025 could work in your favor during negotiations.

Tips for Sellers: Attracting the Right Offers

Sellers, getting top dollar means setting realistic expectations and preparing your home to shine. Here’s how:

  • Price Strategically: Partner with a local real estate expert to price your home competitively. Nearly 49% of agents agree pricing is the key to a quick sale.
  • Stage Your Home: Professional staging or high-quality photos can help justify your asking price.
  • Stay Open to Negotiations: Flexibility can mean the difference between a quick sale and a prolonged listing.

What the Pricing Gap Means for the 2025 Real Estate Market

The $27,000 pricing gap highlights a broader trend in the housing market: cautious buyers versus confident sellers. Bridging this gap will require both sides to adjust their expectations. For buyers, it’s about realistic budgeting and smart negotiations. For sellers, it’s understanding market trends and pricing your property to attract serious offers.

With the right strategies and a little compromise, 2025 could be a great year for both buyers and sellers.

TL;DR

  • Buyers expect to spend $386,507, while sellers aim for $413,976—a $27,000 pricing gap.
  • Sellers are confident, but buyers are cautious due to rising costs and mortgage rates.
  • Strategic planning and realistic expectations are key for navigating the 2025 real estate market.

Are you ready to tackle the 2025 housing market? Let’s work together to achieve your goals!

How Homeownership Is Life Changing for Many Women

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Throughout Women’s History Month, we reflect on the impact women have in our lives, and that includes impact on the housing market. In fact, since at least 1981, single women have bought more homes than single men each year, and they make up 17% of all households.

Why Is Homeownership So Important to Women?

The rise in women pursuing homeownership hasn’t just made an impact on the housing market. It’s also been an asset for those buyers and their households. That’s because homeownership has many benefits, both financial and personal.

On the financial side, housing proves to be the key to building wealth for single women. Ksenia Potapov, Economist at First American, says:

“For single women, housing has always made up a large share of total assets. Over the last 30 years, the average single woman’s wealth has increased 88% on an inflation-adjusted basis, from just over $142,000 in 1989 to $267,000 in 2019, and housing has remained the single largest component of their wealth.”

The financial security and independence homeownership provides can be life changing, too. And when you factor in the personal motivations behind buying a home, that impact becomes even clearer.

A recent report from the National Association of Realtors (NAR) shares the top reasons single women are buying a home right now (see chart below):

Bottom Line

Homeownership can be life changing no matter who you are. Let’s connect today to talk about your goals in the housing market.

Why Buying a Home Is a Sound Decision

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If you’re thinking about buying a home, you want to know the decision will be a good one. And for many, that means thinking about what home prices are projected to do in the coming years and how that could impact your investment. 

This year, we aren’t seeing home prices fall dramatically. As the year goes on, however, some markets may go up in value while others may lose value. That’s why it’s helpful to keep the long-term view in mind. Experts project a return to a steadier rate of price appreciation in the years that follow.

Home Price Appreciation in the Years Ahead

Over 100 economists, investment strategists, and housing market analysts were polled by Pulsenomics in their latest quarterly Home Price Expectation Survey (HPES). The report indicates what they believe will happen with home prices over the next five years. As the graph below shows, after mild depreciation this year, these experts forecast home prices will return to more normal levels of appreciation through 2027.

The big takeaway is experts aren’t forecasting a drastic fall in home prices nationally, even though some markets will see home price appreciation while others may depreciate. And when they look further out, they see steady price appreciation in the long run. That’s a great example of why homeownership wins over time.

What Does This Mean for You?

Once you buy a home, price appreciation raises your home’s value, and that grows your household wealth. Here’s how a typical home’s value could change over the next few years using the expert price appreciation projections from the survey mentioned above (see graph below):

In this example, if you bought a $400,000 home at the beginning of this year and factor in the forecast from the HPES, you could accumulate over $54,000 in household wealth over the next five years. So, if you’re wondering if buying a home is a sound decision, keep in mind what a strong wealth-building tool it is long term.

Bottom Line

According to the experts, while we may see slight depreciation this year, home prices are expected to grow over the next five years. If you’re ready to become a homeowner, know that buying today can set you up for long-term success as home values (and your own net worth) are projected to grow. Let’s connect to begin the homebuying process today.

Reasons To Consider Condos in Your Home Search

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Are you having trouble finding a home that fits your needs and your budget? If so, you should know there’s an option worth considering – condominiums, also known as condos. According to Bankrate:

“A condo can be a more affordable entry point to homeownership than a single-family home. And as a homeowner, you’ll build equity over time and have access to tax benefits that a renter wouldn’t.”

That’s why expanding your search to include additional housing types, like condominiums, could help you accomplishyour homeownership goals this spring, especially if you can be flexible about the space you need. Condos are typically smaller than a single-family home, but that’s part of what can make them more budget-friendly (see graph below):

In addition to providing more options in your home search and possibly your price point, there are several other benefits to condo living. They tend to require less upkeep and lower maintenance – and that can give you more time to spend doing the things you enjoy. Plus, since many condos are in or near city centers, they offer the added benefit of being in close proximity to work and leisure.

Remember, your first home doesn’t have to be your forever home. The important thing is to get your foot in the door as a homeowner so you can start building wealth in the form of home equity. In time, the equity you develop can fuel a future purchase if your needs change.

Ultimately, owning and living in a condo can be a lifestyle choice. And if that appeals to you, they could provide the added options you need in today’s market.

Bottom Line

It could make a lot of sense to add condos to your home search. Let’s connect today if you’re ready to check out the options in our area.

What Buyer Activity Tells Us About the Housing Market

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Though the housing market is no longer experiencing the frenzy of a year ago, buyers are showing their interest in purchasing a home. According to U.S. News:

“Housing markets have cooled slightly, but demand hasn’t disappeared, and in many places remains strong largely due to the shortage of homes on the market.”

That activity can be seen in the latest ShowingTime Showing Index, which is a measure of buyers actively touring available homes (see graph below):

The 62% jump in showings from December to January is one of the largest on record. There were also more showings in January than in any other month since last May. As you can see in the graph, it’s normal for showings to increase early in the year, but the jump this January was larger than usual, and a lot of that has to do with mortgage rates. Michael Lane, VP of Sales and Industry at ShowingTime+, explains:

“It’s typical to see a seasonal increase in home showings in January as buyers get ready for the spring market, but a larger increase than any January before after last year’s rapid cooldown is significant. Mortgage rate activity this spring will play a big role in sales activity, but January’s home showings are a positive sign that buyers are getting back out there . . .”

It’s important to note that mortgage rates hovered in the low 6% range in January, which played a role in the high number of showings. What does this mean? When mortgage rates eased, buyer interest climbed. The jump in home showings early this year makes one thing clear – while rates may be volatile right now, there are interested buyers out there, and when mortgage rates are favorable, they’re ready to make their move. 

Bottom Line

An increase in showing activity in January is a good sign that there are buyers who are eager to purchase a home. If you’re thinking of selling your house, let’s talk so you’re ready when the time is right for you. 

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