This Will Be the Best Place to a Buy a House in 2025

As we brainstorm new year’s resolutions, there’s important news for people in the Southwestern United States: The real estate market could shift from a seller’s market to a buyer’s market in 2025. 

In a recent press release, Zillow shared a few predictions, including one about buyers dominating markets in the Southwest. Zillow’s October 2024 market report revealed that there are 13 major markets where buyers have the upper hand, but the latest announcement expects metros in the Southwest to follow suit. This region comprises Arizona, New Mexico, Nevada, Utah, Colorado, and Southern California.

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“More inventory should shake loose in 2025, giving buyers a bit more room to breathe,” said Skylar Olsen, Zillow’s chief economist. 

Lindsey Harn, a top-producing real estate agent in San Luis Obispo, California, says she doesn’t expect California markets to make this shift because of low inventory. 

“We are in a housing shortage, meaning there are more people who need housing than sellers wanting to sell or leave the state,” Harn says. “The exception may be markets where there has been a lot of new construction. This could be Arizona or maybe less desirable areas of California.”

Another caveat with this prediction? Southwesterners need to watch mortgage rates. If those fall more than Zillow anticipates, the area could continue to be a seller’s market.

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Harn says buyers should get qualified and be ready to make moves, just in case the market does change, and sellers should expect to wait a bit longer before they display a “SOLD” sign. 

“Make sure your home is show-ready and take the time to ensure it’s in a good, saleable shape,” she says. “If there are more sellers you are competing with, you want to stand out.” 

Before you ring in 2025, Harn adds that now could be the perfect time for buyers and sellers to consider making a move.

“Q4 can be one of the best times to buy or sell,” she says. “Buyers during Q4 tend to be serious and often have financial or tax-related motivations to close quickly. Inventory tends to be lower, meaning less competition for sellers.”

Strategy aside, Harn has noticed that homes show even better during the holiday season. “Fireplaces are on, the air smells festive, and the coziness shines through,” Harn says.