If you’ve been watching the housing market lately, you’ve probably noticed that it seems to be somewhat chaotic. Prices are dipping in some areas, competition is fierce in others, and mortgage rates are still running high. Many potential buyers are watching the real estate sector, wondering whether or not now is the best time to make a move. In reality, the best time to buy a house is when you’re ready, regardless of what the economy is doing. The economy is not a monolith that affects everyone in the same way. 

Despite overall trends, some people are still able to thrive in uncertain times. While the housing market may seem unstable, there are still people successfully buying homes, and you could be one of them. By applying Rational Finance principles, you can evaluate the decision to buy real estate based on your personal goals, finances, and lifestyle, and not just based on market numbers.

What Does the Current Housing Market Look Like?

As covered in our previous blog, the current housing market is fairly volatile, but is slowly becoming more tepid. The housing market is beginning to shift away from the seller-dominated frenzy we’ve seen in recent years and is becoming more lukewarm.

In June 2025, 26.6% of home listings cut their asking price. This is the highest percentage of June price reductions since Zillow began tracking price cuts in 2018. Some economists now consider the market neutral, meaning neither buyers nor sellers have the upper hand. 

Fewer people are buying houses, leading to an increase in available real estate by 17% compared to last year. While this could benefit buyers by lessening competition, it may also be an indicator that the economy is cooling down. Builder activity is also slowing, and permits and land purchases have dropped. These are causing experts to be cautious about the near-term outlook of the economy.

Despite reduced competition, mortgage rates still hover near 7%. The Federal Reserve met in late July to debate action, and despite two members voicing the wish to lower rates, the Fed is still holding steady. There may be a change in September, but it is still highly uncertain, and there are other economic factors that may keep mortgage rates high. 

Overall, the market is neither hot nor cold, which means your decision shouldn’t hinge solely on market conditions.

How Can You Know When to Buy a House?

Buying a home is a deeply personal decision, and Rational Finance can help you approach it with clarity. Instead of getting lost in economic noise, focus on these key aspects:

Look at Your Future Goals

Take the time to think about your ideal life and determine your life goals with Rational Finance. If you don’t already have a financial roadmap, take the time to build one. Understand what exactly you want out of life and why you want it. Next, take the time to examine how your current life aligns with your ideal life. 

Ask yourself some questions. For example, have you always pictured yourself owning a home (or multiple properties)? What is your biggest motivation for purchasing real estate? If you’re renting, are rising rent costs keeping you from affording other things you want in life? Are you tied to one certain place, or are you open to moving somewhere else?  Having an idea of what you want and how your current actions are helping or hindering you can give you a solid starting point.

Evaluate Your Financial Readiness

Ensuring you have the financial readiness to purchase real estate is imperative. How is your current financial situation? When was the last time you did a financial check-in? You need to know your income, assets, savings, and debts. Without understanding your financial health, you’ll have no idea what you can afford. 

Boil It Down to the Basics

Although buying a home is a long-term and significant decision, at the end of the day, it comes down to two questions: Do you want to buy a house? Can you afford to buy a house? If the answer to both is “yes,” then market fluctuations matter less than you think.

Avoiding Decision Paralysis Despite an Uncertain Market

It’s easy to overthink when there’s so much conflicting and ever-changing news about the housing market. Decision paralysis can creep in and keep you stuck in “research mode” without ever moving forward. The good news is that by using Rational Finance principles, transitions don’t have to be traumatic. 

Know the current market trends, but don’t obsess over them. Too much information can be just as paralyzing as too little. When information comes from every direction at all times, it can lead to information overload and leave us in a freeze response. Learn how to filter through the noise, lean on trusted sources, and focus on your end goals.

Build your financial confidence. When you have financial confidence, you feel equipped to make informed decisions and take ownership of your financial future. Understand your budget, know your financial situation, and create a clear financial roadmap so you know exactly where you stand. When you have clear knowledge of your financial situation, you’ll feel less unsure of your financial decisions, including buying a home.

Focus on what matters most: your needs and timeline. Financial anxiety is a real thing that can affect you heavily across various aspects of your life. Understanding financial anxiety and learning how to overcome it can help you conquer your fear and decision paralysis. Focus on yourself and your needs over macro-level issues like economic fluctuations. Market volatility will always exist, but your decisions should serve your life first.

When in doubt, turn to a trusted advisor. The right financial guide can help you weigh trade-offs, cut through uncertainty, and move forward with confidence when the timing is right. At PFW Advisors, we take a holistic approach. We take into account every aspect of your financial life, your goals, and your circumstances to help you choose the path that truly works best for you.

The housing market will always have ups and downs, but your decision to buy should be rooted in your personal goals and financial reality. By applying Rational Finance principles, you can cut through the noise, overcome decision paralysis, and make a move when you are truly ready. 

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