Suze Orman Says If She Were Looking To Buy Real Estate, She’d Wait Until This Point in 2025 — Here’s Why
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Suze Orman, personal finance expert and bestselling author, said you probably shouldn’t rush into homeownership this year.
Although housing supply hit its highest level since 2020 in January, demand fell to its lowest level since 2020 as mortgage rates reached an eight-month high, according to Redfin. Most major forecasts expect rates to fall in 2025 — but not by much in the near term, Business Insider reported.
If you’re thinking about buying real estate this year, here’s why Orman said you should wait.
Why You Should Wait To Buy Real Estate
“Mortgages are around 7% right now, and I think they’re going to stay at around 7% here for quite a while,” Orman said in a January episode of her “Women and Money” podcast.
And when does she think prospective buyers should jump into the market? “I have to tell you, I think I would probably wait till about September to do so,” she said.
If rates come down earlier or if you get a “steal of a deal,” Orman added, then it may make sense to buy right now. If you aren’t in a rush, you might want to wait.
Why Waiting Doesn’t Always Make Sense
Not all housing experts agree that it’s better to wait.
Phil Crescenzo Jr., vice president of the Southeast Division of Nation One Mortgage Corporation, doesn’t agree with this statement for a few important reasons.
“She does mention getting a ‘steal of a deal’ as one factor, and she’s correct. The ‘deals’ available in many areas are incentives to move property faster or, in the case of a builder having inventory that cannot sit, offering rate buy downs or discounts to price or added incentives to closing costs,” Crescenzo Jr. explained.
If rates move 0.25%, and the fixed rate falls to 6.5%, he pointed out that this would only save buyers $86 per month on their monthly mortgage payments.
“If there is an influx of buyers due to the drop, the offset in price could be tens of thousands of dollars in almost every case,” he added. “Now that we’re into 2025, there is less reason to wait than in the previous two years from what I see every single day with real-life scenarios.”
Yoann Dorat, global real estate advisor with ONE Sotheby’s International Realty in Florida, said waiting can make sense in some markets. However, if demand is strong, waiting too long can result in your being priced out. He pointed to South Florida as an example, citing demand for luxury and pre-construction.
“Interest rates matter, but so does inventory — buyers waiting too long might find themselves priced out as competition heats up. If you find the right property, locking it in now could be a better move than waiting and hoping for lower rates,” Dorat explained. “Plus, refinancing later is always an option if rates drop.”
Melanie Musson, home finance expert with Clearsurance.com, agreed. When rates decrease, home prices typically increase. This means that the overall monthly payment is likely to be similar now as in September, she explained. Plus, there’s no guarantee that interest rates will fall by September.
“It’s best to shop, so you know what you’re looking for and can identify a good deal. If you already have a place to live, you don’t need to feel pressure to buy something immediately, but you shouldn’t wait if an opportunity arises,” Musson said. “Buying a home is generally a good financial move, even when it’s not a buyer’s market or record low interest rates.”
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