Buying
Buying
Why NOW is the Best Time to Buy a House in El Paso, TX | 2025 Real Estate Market
Why is now a good time to buy a house in El Paso? Three of the four things that matter most are in the buyer's favor: very negotiable sales prices, lots of inventory to choose from, and sellers willing to pay closing-cost concessions.
John Peña breaks down the 2025 El Paso buyer's market. The one factor not in your favor is the interest rate, hovering around 6 to 6.5 percent, though that is below the 50-year average near 8 percent and you can refinance later if rates drop. Everything else favors buyers: prices are negotiable, with buyers often getting 2 to 10 percent off (a $300,000 home for roughly $30,000 to $60,000 less). Inventory is high, over 3,000 homes for sale, giving you real choice and leverage. And sellers are frequently covering part or all of your closing costs, which on a $300,000 home run around $9,000. When the market flips back, all of these advantages disappear.
Video transcript
Why NOW is the Best Time to Buy a House in El Paso, TX | 2025 Real Estate Market
If you're looking to purchase a home in El Paso or anywhere, now is a fantastic time and I'm going to tell you exactly why in this video. So let's jump right into it and no stalling here. So essentially there are four things that really, really matter when you're purchasing
a home. And these can either be in your favor as a buyer or they're in the favor of the seller. Right now, three of those four things are in your favor. Let's start with the one that is not necessarily in your favor and that is the interest rate.
Right now, interest rates are hovering between around 6%, 6.5% more or less. Keep in mind that the 50 year average is 8%. So we're not that bad. But when you look back to like kind of COVID times, when interest rates dropped to like
3%, we're definitely not there. So interest rates are not as low as they possibly could be. So you could say that that is not in the buyer's advantage. Okay.
So keep in mind to remedy this problem. You can always refinance later when the interest rates come down, hopefully. Now let's talk about the other elements that actually are definitely in your favor. First one is sales price.
Right now, sales prices are very, very negotiable. Okay. I would say on average here in El Paso, we're seeing buyers get a 2 to 10% discount on the price of a home.
So let's take a $300,000 home. You're likely going to get that home for $60,000 to $30,000 less than that asking price. Okay. So that is a considerable savings.
You are not going to get that savings in a seller's market. Okay. In this market, you definitely are going to be able to chop down and negotiate that sales price.
Definitely in your advantage. All right. What's the second thing that's in your advantage? Choice.
Inventory. Okay. We always talk about supply and demand. That's what drives whether there's a buyer's or a seller's market.
Right now, you have a lot of choices. Why? Because there are less buyers in the market and there are more homes for sale. Currently in El Paso, there's over 3,000 homes for sale.
This is unbelievable for you. What it means is that you have a lot more choice and you can negotiate with all of these sellers who are competing for your business. So that is definitely in your advantage.
What's the last thing that's in your advantage? Concessions. Concessions are essentially when you negotiate a contract, you as a buyer can ask the seller to pay for some of your closing costs.
Okay. Let's stay with that $300,000 house. For the most part, your closing costs are going to be in the ballpark of $9,000. This is different than your down payment.
This is separate. Your closing costs at $9,000 in this market, because sellers need and want to sell their home, the sellers are going to pay probably at least half of that, if not all of it. So this is a pretty fantastic time to buy if you can get qualified for a home loan.
So whenever it's a seller's market, all of these variables are going to flip. Whenever it transitions to a seller's market, likely the interest rates are going to come down, which is going to be in your favor. But guess what?
Sales prices are going to go up and they're going to be less negotiable. Buyers are going to be less inclined to give you seller concessions and there's going to be less inventory because more buyers are going to jump into the market and the availability is going to be limited.
So it may not necessarily feel like it right now because everybody is always kind of freaked out basically about that interest rate number. But the great thing about the interest rate number is, like I said at the beginning, is that once interest rates come down a year or two, three years from now, you can just
refinance that mortgage and get that lower interest rate. You will have saved money on the sales price. You probably would have got your seller concessions and you have a lot more options to choose from. So if you are considering purchasing a home, please consider reaching out to us
and we'll see you in the next episode.
