What Rising Interest Rates Mean for Homebuyers in 2025

By Rebecca Durfey

Rebecca Durfey brings over 20 years of experience in real estate transactions within Maricopa County. Despite managing multiple clients simultaneously, her primary focus is to provide a personalized experience that makes you feel like her sole priority. Rebecca and her team are dedicated to efficiently achieving the desired outcomes for each client they serve.

If you’ve been thinking about buying a home, you’ve probably heard a lot about rising interest rates and market uncertainty. It’s understandable to feel hesitant, but let me assure you that now is a good time to buy, and here’s why.

Why do rising interest rates matter? Rising interest rates are often a concern for buyers because they impact monthly payments and overall affordability. Buyers worry about committing to a purchase when they’re unsure if prices will drop or if they’re timing the market right. While it’s natural to feel uncertain, waiting for the market to stabilize may not be the best strategy. In fact, there are still plenty of opportunities in the market right now, especially for buyers who are ready to act.

What are sellers offering? The good news for buyers is that many sellers are open to negotiations. With rising interest rates and more inventory on the market, sellers are more willing to consider concessions, price reductions, and other deals that weren’t available before. This flexibility can give you the upper hand, especially when you’re ready to buy. Many sellers are motivated to make a deal, and there are still fantastic properties available at great prices.

Is the market changing? Yes, it is. I’ve been expecting the market to shift for some time, and while it’s been steady for the past few years, things are starting to change. No market stays the same forever, and experts predict that change is on the horizon. Waiting too long could mean missing out on opportunities, especially as prices continue to rise or the market heats up.

What’s happening in Arizona’s housing market? In Arizona, the market has seen a significant increase in inventory. There are currently over 29,000 homes on the market, which is more than double the usual supply. This gives buyers more options to choose from. Not every seller is willing to negotiate, but many are. If you can afford to buy, now is the time to take advantage of this increased inventory and find the perfect home.

If you’ve been holding off on buying a home because of interest rates or market uncertainty, it’s time to reconsider. The market is shifting, and there are great deals to be found. If you have questions or want to discuss your options, feel free to reach out. Call or text me at 623-297-4536 or email me at rebeccadurfey@kw.com. Let’s talk about how you can make the most of this market.