Why 2025 Might Be the Right Time to Buy a Home, According to Compass CEO

Real Estate Tony Accardo June 3, 2025

Despite high mortgage rates and mixed signals from the market, Compass CEO Robert Reffkin believes that 2025 presents a unique opportunity for buyers—thanks to a combination of rising inventory, slightly lower home prices, and easing economic uncertainty.

In an interview covered by Business Insider, Reffkin highlighted three key shifts currently working in buyers’ favor:

1. Housing Inventory is the Highest It’s Been in 5 Years

According to Realtor.com, active U.S. home listings climbed to over 959,000 in April—the highest level since 2020. Reffkin noted, “Sellers currently outnumber buyers by around 34%, the most they’ve outnumbered buyers since 2013.” This trend is shifting many major metros into buyer’s markets—31 of the top 50, according to Redfin—giving house hunters more choice and negotiating power.

2. Home Prices Are Easing

While home values remain historically high, they’ve softened compared to recent peaks. In Q1 2025, the median U.S. home sales price fell to $416,900, a 5% drop from late 2022. Reffkin believes prices could continue to edge downward:

“I think it's more likely that home prices will fall slightly in the second half of the year,” he said. “But recognize, flat is actually down in real terms. Because if inflation is up 3% and you're flat, you're actually down.”

3. Mortgage Rates Are Stabilizing

Though still above pre-2022 levels, 30-year mortgage rates have dipped below their recent highs, currently averaging 6.89%. That slight relief may help unlock pent-up buyer demand.

“Pending sales are going to rebound in May,” Reffkin said. “The less noise in the stock market, the less noise in tariffs, the more people feel comfortable making the most important purchase they make in their lives.”

Final Takeaway

Between increasing inventory, plateauing prices, and calmer market conditions, buyers in 2025 may find more flexibility than at any point in the past several years.

Quotes and data sourced from Business Insider, May 2025.