The 2025 Buyer’s Market: How First-Time Homebuyers Can Compete
Buying your first home is exciting, but let’s be honest—it’s A LOT. We recently worked with a couple searching for their first home in Southern Utah. They had a clear vision: an open, great room-style layout and no HOA. Like many first-time buyers, they weren’t pre-approved yet, but that didn’t stop them.
With some guidance, they explored nearly 10 properties, weighed their options, and when they found the one, they acted fast. Even with financing in the mix, everything came together, and they closed on a home that checked all their boxes. Their story proves that with the right approach, first-time buyers can still land a great home—even in a shifting market.
If you’re thinking about buying in St. George, Utah, or anywhere in the region, Rebecca Bundy, a trusted Realtor and top agent with Keller Williams, shares what buyers need to know in 2025.
Why 2025 Could Be the Year for First-Time Buyers
The real estate market in 2025 is shaping up to be a prime opportunity for first-time homebuyers, especially in Southern Utah and the Greater St. George area. After years of rapid appreciation, the market is normalizing, leading to increased inventory and more opportunities for buyers. This shift provides a favorable environment for those looking to enter the market. Buyers have greater flexibility and stronger negotiation power. Market conditions allow for better deals, lower competition, and more room for negotiation on price and closing costs.
But it’s not the same across the board. Some areas in Southern Utah, like certain neighborhoods in St. George, still have strong demand. That’s why working with an agent who understands the local market is key. A local St. George Utah Realtor, knows how to help buyers focus their search where they’ll get the most value.
Getting Pre-Approved Puts You in a Stronger Position
One of the smartest moves you can make? Get pre-approved. Sellers want to see serious buyers, and without pre-approval, it’s easy to lose out on a home.
A lender will check your credit, income, and debt-to-income ratio to determine what you can afford. There are also first-time homebuyer loan programs that offer lower down payments or better interest rates. Many buyers in St. George and surrounding areas use FHA, USDA, or VA loans to make homeownership more affordable.
Know What You’re Looking For (and Your Deal-Breakers)
With more homes available, it’s easy to get caught up in choices. Before you start house-hunting, make a list of your must-haves and nice-to-haves.
Some things to consider:
✅ Location – Do you want to be near parks, schools, or major roads?
✅ Layout – Open concept? Extra bedrooms? A backyard?
✅ HOA or no HOA – Some buyers prefer HOA perks, while others want fewer restrictions.
Having a clear list helps keep your search focused. Rebecca Bundy has helped many buyers in Southern Utah narrow down their options and find homes that truly fit their needs.
Use Your Negotiating Power Wisely
In a buyer’s market, sellers may be more open to offers, but strategy still matters. Instead of making an offer too low, buyers can often negotiate for things like seller-paid closing costs or repairs before closing.
However, different parts of Southern Utah move at different paces. Some homes in St. George might get multiple offers, while others sit for a while. That’s where having a trusted Realtor who understands local trends can make a big difference.
Take Advantage of First-Time Buyer Assistance
Worried about the down payment? There are programs designed for first-time buyers that can reduce upfront costs or lower interest rates. Many first-time homebuyers in St. George and Southern Utah don’t realize they qualify for assistance programs that can make homeownership more affordable. Several options are available for buyers in Southern Utah, including:
- Utah Housing Corporation’s First-Time Homebuyer Assistance Program: Offers up to $20,000 in assistance for down payments, closing costs, or interest rate buydowns. This comes as a 0% interest loan with no monthly payments and can be combined with other Utah Housing loans.
- FHA Loans: Require a minimum credit score of 580 and a 3.5% down payment. These loans are insured by the Federal Housing Administration and are popular among first-time buyers.
- USDA Loans: Provide 100% financing for homes in eligible rural areas, which can include parts of Southern Utah. No down payment is required, making it an attractive option for qualified buyers.
- VA Loans: Available to veterans and active-duty military members, offering no down payment and no private mortgage insurance requirements.
Stay Open to Different Areas
The real estate market is dynamic, and conditions can shift quickly. That’s why it’s important to stay informed on market trends, attend open houses, and be open to exploring different neighborhoods. Sometimes, expanding your search slightly can lead to unexpected yet perfect options.
If your first-choice neighborhood is out of budget, don’t be afraid to explore nearby options. Many buyers searching in St. George also consider places like Washington, Santa Clara, or Hurricane for more affordable prices while staying close to everything they love. By staying flexible and working closely with a knowledgeable real estate professional, you increase your chances of finding a home that meets your needs and budget.
The Right Guidance Makes a Difference
First-time buyers often have a lot of questions—and that’s completely normal. From finding the right home to negotiating a fair deal, having the right real estate agent can take a lot of the stress out of the process.
For those looking in Southern Utah, working with someone who understands the local market—like Rebecca Bundy, a top agent with Keller Williams—can be a game-changer. If you’re considering buying in St. George or anywhere nearby, now is a great time to start planning your next move.
Start Your Home Buying Journey Today
The 2025 market presents an excellent opportunity to make homeownership a reality. With the right strategy, guidance, and expert support from Sycamore Lane Realty Co., you can find and secure the perfect home in Southern Utah.
Let’s make your dream home a reality. Contact us today to get started on your home-buying journey with the top real estate professionals in Greater St. George and beyond!
