Is Now a Good Time To Invest In Real Estate? [2025]

Is Now a Good Time To Invest in Real Estate? [2025]

Is 2025 the right time to buy real estate? Let's discuss current market conditions and your investment options. 

The real estate market is constantly changing, and 2025 presents a unique landscape for potential homebuyers and investors in the Raleigh area.

Real estate is a great investment and offers numerous benefits. Many people shy away from real estate investments due to misconceptions that they are intimidating or require a large amount of money, which is not true. Investing in real estate is relatively straightforward, and almost anyone can invest in a property.

There are various reasons to invest, regardless of your age, income, or other factors. The sooner you start investing in property, the sooner you can begin building your portfolio. People choose real estate investment as a means to build wealth, as the real estate market tends to be less volatile than the stock market.

According to the U.S. Census Bureau, 75% of multifamily investors are over the age of 45. Many real estate investors enter the market later in life due to specific fears. Still, more than half of these individuals own over five units and generate income from their properties. 

If you have been wondering whether now is the right time to make your move, this guide will help you navigate the current market conditions, understand your investment options, and prepare yourself for success.

Here is what you should know about investing in real estate now. 

1. The Raleigh Housing Market 

The Raleigh real estate market has evolved significantly over the past year, and understanding these trends is essential for making an informed decision.

The Raleigh housing market is experiencing a fascinating shift. After years of explosive growth during the pandemic boom, the market is now entering a more balanced phase.

The median home price in Raleigh stands around $450,000, with properties typically selling within 48 days. What's particularly interesting is that homes are selling close to the asking price, underscoring the market's continued strength despite moderate cooling.

Currently in a seller's market, this means sellers still maintain leverage, though not as dramatically as in previous years. For buyers, this translates to less fierce competition compared to recent years, with homes receiving an average of just two offers rather than the multiple-offer situations common a few years ago.

Economic Drivers Supporting the Market 

Raleigh's economy continues to thrive, driven by its diversified sectors including technology, healthcare, and education. The presence of major institutions like North Carolina State University and Duke University contributes to the city's intellectual capital and attracts skilled professionals.

The Research Triangle Park remains a significant employment hub, drawing companies and workers from across the country. Home to many companies that attract many young professionals to the area, Raleigh consistently ranks among the fastest-growing cities in the United States.

Price Trends and Forecast 

The Raleigh housing market seems to be softening, with housing prices expected to experience modest appreciation. This steady, predictable growth appeals to conservative investors who want to avoid dramatic price swings while building equity gradually.

The market is transitioning from a heavily seller-favored environment to a more balanced landscape. Some sources indicate this shift is creating more negotiating power for buyers. 

2. What to Look For in Real Estate Property

Before investing in real estate, it's crucial to understand what makes a good property and the realistic challenges you will face. A quality real estate investment should be found in a good location in growing neighborhoods, with solid construction, reasonable proximity to employment centers, and access to schools and amenities.

Properties in established neighborhoods with consistent appreciation history tend to perform better long-term. Look for homes with energy-efficient features, as sustainable upgrades are increasingly important to buyers and can increase resale value.

For investment purposes, consider cash flow potential, property condition, rental market strength in the area, and exit strategy. Single-family homes, townhouses, and condos all have different advantages depending on your investment goals.

Real estate investing is not a guaranteed path to wealth. Understanding the challenges is just as important as recognizing opportunities:

No Guarantee of Returns 

Like any investment, there's no guarantee that a property will appreciate or yield a profit. Market downturns, neighborhood deterioration, or economic shifts can impact your investment negatively.

Time-Consuming Process 

Property ownership is a time investment, and if you are looking to be a landlord, you have to be a specific person to do so. Whether you are managing tenants, coordinating repairs, handling maintenance, or dealing with finances, real estate is a hands-on and time-consuming process. 

Difficult Financing 

If you have a strong credit history and a stable income, obtaining financing for an owner-occupied property is straightforward. A modest down payment is required, and the remaining amount can typically be secured through a fixed-rate or adjustable-rate loan.

On the other hand, if you buy to rent or fix and flip, lenders are not as generous with financing options and tend to have stricter requirements, higher credit scores, lower debt-to-income ratios, and larger down payments.

No Guaranteed Cash Flow 

Rental properties do not automatically generate positive monthly cash flow. Vacancies, maintenance costs, property taxes, insurance, and unexpected repairs can eat into or eliminate profits.

If your tenants leave, the mortgage and expenses will fall on your shoulders, and you must keep paying even if you are not receiving rental income. In this scenario, you should have a solid emergency fund and stable finances to handle any situation that comes your way.

3. Real Estate Investment Options to Consider 

If you have decided that real estate investment aligns with your goals, you have several paths to choose from. Here are some ways you can diversify your portfolio in real estate. 

Rental Properties

Rental properties are the most traditional form of real estate investing. A huge advantage of being a landlord is that you can deduct costs related to the property, including maintenance, repairs, utilities, depreciation, and other expenses. 

The disadvantages are significant: tenant management headaches, vacancy periods, maintenance emergencies, and the need for substantial capital upfront.

Renting Individual Rooms

A middle-ground approach is purchasing a property and renting out individual rooms to roommates. This typically generates stronger cash flow than single-tenant rentals since you're dividing rental income among multiple tenants.

Online Real Estate Investing Platform

Real estate crowdfunding platforms and Real Estate Investment Trusts offer a more passive approach. These platforms pool investor capital to purchase and manage properties.

You receive dividends based on the property's performance without the hands-on management responsibilities. The trade-off is less control, typically lower returns than direct ownership, and the platform's success depends on its management expertise and market conditions.

House Flipping 

House flipping is an exciting venture that includes acquiring a discounted property, making improvements, and then selling it for a profit. However, this strategy requires significant expertise, carries substantial risk, and demands capital for both purchase and renovation.

Real Estate Investment Trusts (REITs) 

A REIT is a great option if you want exposure to real estate without the responsibility and stress of managing rentals. REITs are companies that own and operate income-producing real estate.

They are traded like stocks, offering maximum liquidity and minimal time commitment. You simply hold shares and receive dividend payments.

4. How to Prepare to Buy a Property

Whether you are purchasing a primary residence or an investment property, preparation is key to success.

Get Your Finances Ready

The first step you should consider before buying is getting your finances right. Review your credit report, check for errors, and address any issues. Lenders typically require a credit score of at least 620 for conventional loans, though 740+ gets better rates.

Build Your Savings

Whether you are trying to get your mortgage down payment or your savings account, saving extra cash is vital if you are planning on moving soon. When you buy a house, you should be prepared for the unexpected as well as other hidden costs, so having extra savings will help you avoid going into debt. 

A common recommendation is to have three to six months of operating expenses saved for investment properties to cover vacancies and unexpected repairs.

Do Not Rush the Process 

One of the biggest mistakes buyers make is rushing into purchases. Take time to research neighborhoods, understand the market, and evaluate whether you are truly ready.

Understand Mortgage and Assistance Programs 

Mortgage interest rates in 2025 are averaging between 6.27-7%. However, first-time homebuyers have several options worth exploring.

FHA loans offer lower down payments and more flexible credit requirements. VA loans are available to military service members with competitive rates and no down payment.

USDA loans serve rural areas with zero down payment options. State and local assistance programs can help with down payments and closing costs.

5. Is Now a Good Time To Invest in Real Estate? 

After examining the market, the answer to whether or not it is a good time to invest in real estate depends on your unique situation and goals. If you are planning to move to Raleigh and stay in the area for at least five years, 2025 presents an attractive opportunity. 

The strong job market and population growth suggest Raleigh will remain a desirable location, supporting long-term value appreciation. Negotiating power has shifted toward the buyer, which could be advantageous. 

Methodology

Data was sourced from Experian, the U.S. Census Bureau, and Freddie Mac to determine whether it is a good time to invest in real estate.

FAQs

Why is real estate such a good investment?

On its own, real estate offers many benefits, such as cash flow, tax breaks, equity building, competitive risk-adjusted returns, and a hedge against inflation. There are many other ways why real estate is such a good investment, so if you are interested in doing so, start doing your research now. 

Is real estate investing worth it in 2025?

Interest rates are balancing out in 2025, meaning that now is a great time to invest in real estate if it aligns with your goals and current financial situation. 

What are the three most important factors in real estate investments?

If you are investing, you should be aware of three ways to make money on your real estate investments: loans, appreciation, and rent. To achieve these, you need to look out for three things: price, condition, and availability.

Is Now a Good Time To Invest in Real Estate? [2025] - The Bottom Line

There are various reasons to invest, regardless of your age, income, or other factors. The sooner you start investing in property, the sooner you can begin building your portfolio. 

For most people seeking housing in Raleigh, 2025 is a reasonable time to buy. Although it is not the absolute best market, it is certainly not a bad one. The balanced market, stable prices, strong economy, and reduced competition create favorable conditions for making a thoughtful purchase decision rather than a desperate one.

For investors, it's a time to be selective, analytical, and patient. Those who invest now in strong properties with solid fundamentals should see reasonable returns, even if they won't match the explosive gains of recent years.

Whether you are a first-time home buyer, a seasoned investor, or someone exploring your options, the real estate professionals at Raleigh Realty are here to help. Our team understands the current market and will guide you through every step of the homebuying process.