Home Prices Are Up, But So Are Opportunities

The real estate market continues to evolve—and fast. As of late March 2025, “The typical U.S. homebuyer’s monthly housing payment hit an all-time high of $2,807,” a 5.3% increase from a year ago. That jump is driven by two forces: home prices are up 3%, and mortgage rates now sit at 6.67%.

While this rate is lower than the January high of 7.04%, it’s still a massive leap from the sub-3% rates many buyers enjoyed during the pandemic. That contrast paints a clear picture of today’s affordability challenges—monthly payments have essentially doubled in just a few years.

Buyer Demand Cools—But It’s Not Going Cold

Buyers are still active, just more calculated. “Pending home sales are down 4.6% year over year,” as many wait to see where rates and prices go next. But don’t be fooled—house hunting is quietly heating up. ShowingTime data shows “touring activity is up 37% from the start of the year,” and Google searches for “homes for sale” are at their highest point since August.

The takeaway? Buyers haven’t disappeared—they’re just shopping smarter and more deliberately.

Listings Are Up, Giving Buyers More Options

Here’s where it gets interesting: “New listings of homes for sale are up 7.5% year over year,” marking the biggest increase of 2025 so far. Active listings are also up 11.3%, giving buyers more options and more negotiating power.

This influx could signal the beginning of a market shift—from a red-hot seller’s market to something more balanced. If this trend continues and mortgage rates edge lower, we might see pending sales start to climb again in the months ahead.

Savvy Buyers Are Winning in Today’s Market

Affordability may be tough, but opportunity is still out there. “Because other buyers are cautious too, some house hunters are getting homes for under asking price,” says Kimberly Freutel, a Redfin Premier agent.

Her advice? If you find a home you love and plan to stay for several years, don’t be afraid to make an offer—even if it’s below list. Some sellers are more flexible than you'd think in today’s climate. Freutel encourages buyers to ask themselves, “Would you be sad if this home ends up selling for less than asking price to someone else?” If the answer is yes, it might be time to act.

Bottomline

Yes, housing payments are higher than ever—but higher inventory, less competition, and motivated sellers are creating real openings. If you're thinking about making a move in Orange County, this spring might just be your moment. Whether you're buying, selling, or simply exploring, let Whitestone Real Estate guide you with expertise that’s local, personal, and always ahead of the curve.

Reference: Anderson, D. (2025, March 27). Monthly Housing Payments Hit All-Time High. Redfin News.