AriZona Real Estate insider!

The housing market has been a wild ride since 2022, with inflation and rising mortgage rates turning what was once a predictable landscape into a volatile one. Now, Berkshire Hathaway Home Services is sending a clear message to homebuyers: adjust your expectations. If a company with Warren Buffett’s name attached to it is cautioning buyers, should you be worried?

The Reality of Buying in 2025

According to a recent article from The Street, Berkshire Hathaway Home Services warns that potential buyers need to recalibrate their hopes for the 2025 market. While many have been waiting for a significant correction in home prices and mortgage rates, the hard truth is that affordability remains a challenge. The article emphasizes:

“Despite hoping for a market correction, buyers are advised to realistically navigate the current conditions, which include high prices and interest rates.“

This means that if you’re planning to buy in 2025, you’ll likely have to contend with expensive homes, high borrowing costs, and limited inventory. The dream scenario of low prices, low mortgage rates, and abundant supply isn’t happening anytime soon.

Should Buyers Wait or Act Now?

Many potential buyers are stuck in decision paralysis—should they wait for better conditions, or is now the right time to buy? The Berkshire Hathaway report suggests that rather than waiting for the “perfect” moment, buyers should focus on finding a home that fits their personal and financial needs. The article points out that:

“Finding the right home that meets personal and financial needs should be a priority, and refinancing later could be a beneficial strategy.“

This means if you can afford a home now, it might make sense to buy and plan to refinance if and when rates drop in the future.

The Arizona Housing Market Perspective

For those looking to buy in Phoenix, Scottsdale, or other hot Arizona markets, the same principles apply. Home prices have remained strong, and demand still outweighs supply in many areas. While we may see some cooling in overpriced segments, don’t expect a massive crash. Smart buyers should:

• Be prepared to pay higher monthly payments due to current mortgage rates.
• Focus on properties that fit their long-term goals rather than waiting for the market to “correct.”
• Keep an eye on refinancing opportunities down the road.

Berkshire Hathaway Home Services & Compass: What’s Next?

Adding another layer of intrigue to the market, there are now rumors that Berkshire Hathaway Home Services could be in talks to sell to Compass. While the CEO has publicly denied these claims, industry insiders are buzzing about the possibility. If such a sale were to happen, it could have ripple effects across the real estate sector, especially for agents and homebuyers relying on Berkshire Hathaway’s established presence.

Compass has built a reputation for aggressive expansion and tech-driven real estate solutions, but it has also faced its share of financial struggles. A merger or acquisition could signal a shift in how real estate brokerages operate, potentially altering Berkshire Hathaway Home Services’ approach to market guidance and buyer strategies.

For homebuyers, the bigger picture remains the same—navigating the 2025 market wisely is key, regardless of what happens with brokerage consolidations.

Final Thoughts: What Would Warren Buffett Do?

Buffett’s investment philosophy has always been about long-term value rather than short-term speculation. If you’re buying a home as a long-term investment—whether to live in or rent out—waiting for the “perfect” market conditions might not be the best move. Instead, focus on what makes sense for you now, financially and personally.

Warren Buffett himself is a testament to the power of long-term real estate ownership. Despite being one of the wealthiest individuals in the world, he still lives in the same home he purchased in Omaha, Nebraska, for $31,500 in 1958. His decision to stay put highlights the true value of homeownership—stability, appreciation over time, and avoiding unnecessary speculation. Real estate, when held long-term, tends to increase in value, making it a powerful wealth-building tool.

Personally, I still live in the home I initially purchased as an investment back in 2010 in Tempe, and it has tripled in value since. What started as an investment property turned into my primary residence, proving that holding onto real estate long-term can be one of the smartest financial moves you can make.

While the 2025 housing market may not be ideal, smart buyers who navigate it wisely can still come out ahead.