💡2025 Real Estate Dilemma—Is it Better to Buy Now or Wait? 🤔
The 2025 Real Estate Dilemma: Is It Better to Buy Now or Wait?
It’s the #1 question I’m hearing from both first-time buyers and seasoned homeowners across Virginia Beach, Chesapeake, and the greater Hampton Roads region.
And the honest answer? It depends.
🏡 Deciding whether to jump into the market or hold off is one of the biggest financial choices you’ll make. With mortgage rates still hovering near 7% but showing signs of easing, and home prices in Hampton Roads projected to rise modestly by 3–4% this year, timing matters—but so does strategy.
📊 Inventory is growing, especially in Virginia Beach and Norfolk, giving buyers more options. But homes are still moving quickly in desirable areas, and well-priced listings often attract multiple offers.
💡 The right move depends on your goals, financial readiness, and how long you plan to stay. If you're buying for the long haul, locking in a home now—before prices climb further—could be a smart play. If you're still building savings or waiting for rates to dip, it might make sense to hold off and watch the market.
Let’s dive into the factors shaping the 2025 real estate landscape and offer actionable advice to guide your decision.
📌 Key Takeaways for Hampton Roads Buyers in 2025
🏡 Buying vs. Waiting depends on your finances, goals, and timeline.
📉 Mortgage rates are around 6.5%–7%—moderate historically, but still impactful.
📍 Hampton Roads remains a seller’s market for now, with rising prices in Chesapeake and Norfolk.
📊 Low inventory means prices may climb, but buyers can negotiate concessions.
💬 Stay informed with monthly updates from REIN and the Hampton Roads Planning District Commission.
Mortgage Rates: Where Are They Headed?
In recent years, mortgage rates have risen from historic lows. As of January 2025, average 30-year fixed mortgage rates hover around 6.5%-7%. While these rates are higher than the sub-3% rates seen in 2021, they are still historically moderate compared to the 1980s, when rates exceeded 10%. Additionally, according to the Fannie Mae Sentiment Home Purchase Index, folks are becoming more optimistic and expect rates to decline over the next 12 months.
Personal Considerations: What’s Right for You?
Your personal situation plays a critical role in deciding whether to buy now or wait. Here are some key questions to consider:
💳 Are You Financially Ready?
Credit: Know your score—most loans require a 620 middle score. Lenders use the middle score from Equifax, Experian, and TransUnion. Higher scores unlock better rates.
Down Payment: Do you have 10–20% saved? Or do you qualify for 100% financing or down payment assistance?
Debt-to-Income Ratio (DTI): Most lenders prefer DTI under 43%, though some allow up to 50% with automated underwriting. Calculate yours to assess eligibility.
🎯 What Are Your Long-Term Goals?
If you plan to stay in the home for 5–7 years, buying now may help you build equity.
If you're uncertain about your location or career, waiting could offer more flexibility.
📊 How Competitive Is the Market?
Hampton Roads remains a seller’s market. In Virginia Beach, detached homes sold for 99.7% of asking price in December 2024—acting quickly is key.
The silver lining: sellers are more open to concessions and covering closing costs, giving buyers more leverage.
Market Conditions: What’s Happening in 2025?
Housing Inventory
Nationally, housing inventory remains tight, with a 2.5-month supply in many markets. This is below the 6-month supply needed for a balanced market. Low inventory keeps prices elevated, making timing critical.
Home Prices
While price growth has slowed compared to 2020-2022, many areas are still experiencing increases. For example:
Chesapeake: Median detached home sold price of $465, 250 (December 2024) compared to $392,950 (December 2023)
Norfolk: Median detached home price of $324,900 (December 2024) compared to $301,000 (December 2023)
Waiting may result in higher prices if inventory remains low, but a market correction could present opportunities for patient buyers.
Should You Wait or Buy?
When Waiting Makes Sense
You Need Time to Save: If your savings aren’t where they need to be, waiting can help you avoid financial strain.
Uncertain Market Conditions: If you’re in a high-priced market showing signs of cooling, waiting may allow for better deals if you have the luxury of waiting.
Job or Lifestyle Uncertainty: Major life changes like a career shift or relocation may make waiting the smarter choice.
Action Plan for Waiting:
Boost your credit score by paying off debts and keeping credit card balances low.
Save aggressively to cover expenese like a downpayment and closing costs.
Stay informed about market trends to spot opportunities.
When Buying Makes Sense
You’re Financially Ready: A stable job, solid savings, and manageable debt levels indicate readiness.
Long-Term Plans: If you’ll be in the home for several years, the benefits of building equity outweigh short-term rate fluctuations.
Favorable Local Market: If your desired area has limited inventory or rising prices, acting sooner can save money in the long run.
Action Plan for Buying:
Schedule a buyer consultation with a local real estate agent who understands the market. Make sure the person you decide to work with has a good understanding of your needs and is a good fit for how you like to work to help you accomplish your goals.
Explore your financing options. Get pre-approved for the best loan products that meet your needs. Lenders offer different products and it is important to compare rates
Once you find a home you like, before making an offer, ask your lender for a fee sheet so you can see what your monthly payment will be based on the current interest rates as well as what your anticipated closing costs will be.
The Emotional Side of Waiting vs. Buying
Buying a home is more than a financial decision; it’s an emotional one. Consider how owning a home could impact your life:
Stability: Owning provides stability and control, especially for families, offering a sense of permanence and belonging.
Flexibility: Renting or waiting allows for adaptability in uncertain times, giving you the freedom to relocate or adjust your living situation without long-term commitments.
Pressure and Stress: The process of buying can be stressful, from securing financing to competing in a tight market.
Peace of Mind: Once you own a home, there is peace of mind in knowing your housing costs are fixed, providing a sense of security against rising rents.
❓ FAQ: Should I Buy a Home in 2025?
1. “Mortgage rates seem high—should I wait for them to drop before buying?” It’s true that rates are higher than they were in 2021, but they’re still moderate historically. If you’re financially ready and plan to stay in your home long-term, buying now could make sense. Waiting might help you snag a lower rate—but only if the market shifts in your favor. The key is to lock in a rate that fits your budget and goals.
2. “What if I’m worried about overpaying in today’s market?” That’s a valid concern. Prices in Hampton Roads are still elevated due to low inventory, but buyers now have more room to negotiate. Focus on value—look for homes in areas with growth potential, and don’t be afraid to ask for seller concessions. A well-priced home in a strong location can still be a smart investment.
3. “What if I’m not sure I’ll stay in the area long-term?” If you’re uncertain about your job, lifestyle, or location plans, renting might offer more flexibility. Buying makes more sense if you plan to stay put for at least 5–7 years, giving you time to build equity and ride out market fluctuations.
4. “Are sellers still getting top dollar, or is there room to negotiate?” In Hampton Roads, it’s still a seller’s market—but there’s good news for buyers. Sellers are more open to concessions, like covering closing costs or negotiating price. Acting quickly and working with a savvy agent can help you find opportunities even in a competitive market.
5. “Will home prices keep rising, or is a correction coming?” Inventory remains tight, which keeps prices elevated. Some areas—like Chesapeake and Norfolk—have seen year-over-year price increases. While a correction is possible, waiting could mean paying more later. Stay informed on local trends and be ready to act when the timing aligns with your goals.
Conclusion: Tailor Your Decision to Your Needs
There’s no one-size-fits-all answer to the question of whether you should wait or buy a home in 2025. By evaluating your financial readiness, understanding market conditions, and considering your long-term goals, you can make an informed decision that’s right for you.
📣 Let's Strategize Your Next Move
Whether you choose to wait or buy, planning is key. Connect with a real estate agent and mortgage professional to create a strategy that aligns with your unique situation.
Schedule a free consultation with me to discuss your options and make an informed decision.
Book Your Free ConsultationThanks for Reading,
Liz Schuyler is a top Virginia Beach REALTOR® with RE/MAX Allegiance, licensed since 2001 and trusted across Hampton Roads. With 350+ homes sold, she helps clients Sell, Move, and Invest with confidence and strategy.
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