As we settle into 2025, the U.S. economy continues to walk a tightrope—balancing interest rate stability, inflation management, and global uncertainty. Savvy real estate buyers are moving forward with caution, especially when it comes to investment properties and second homes. If you’re thinking about purchasing this year, you’re not alone in asking: Is this the right time? The answer? It depends on your goals, your risk tolerance—and how well you understand what’s happening in the broader economy.
🔁 Where We Stand in 2025: The Economic Snapshot
The Federal Reserve has kept rates relatively stable in the first half of the year, holding mortgage rates in the 6.75–7.25% range for most qualified buyers. Inflation has cooled slightly as of March but remains a top concern for households and investors alike as we head into the heart of spring.
Other key economic trends:
- Wage growth is holding steady, especially in the tech, energy, and professional service sectors.
- Consumer spending is more selective—focused on value, flexibility, and lifestyle.
- The rise of hybrid and remote work continues to support demand in lifestyle destinations like the Texas Hill Country.
⚠️ New Layer of Uncertainty: Tariffs in 2025
One of the biggest question marks in this year’s economic outlook is tariff uncertainty. With ongoing trade disputes and new tariffs under consideration in multiple sectors—from steel and lumber to tech and energy—investors are understandably more cautious.
How This Affects Real Estate:
- Construction Costs: Tariffs on imported materials could drive up prices for new builds or major renovations. That’s making buyers think twice about fixer-uppers unless the math still works post-renovation.
- Delays in Supplies: Ongoing global supply chain disruptions, exacerbated by tariff shifts, mean longer timelines for home improvements or furnishing vacation rentals.
- Cautious Spending: Investors are slowing down, not stopping. They’re asking: If costs rise another 10%, will this still cash flow?
💬 Many of our clients are choosing to buy properties that are already livable and income-producing, rather than taking on major remodels in an unpredictable materials market.
🚤 Why Lakefront and Lifestyle Markets Still Shine
Despite the cautious tone of 2025, lifestyle-driven markets like Lake LBJ, Horseshoe Bay, and Marble Falls are still strong. Why?
- Limited inventory = long-term value.
- Hybrid work = year-round use.
- Emotional appeal = resilient demand.
We’re seeing a trend toward low-maintenance lake properties—move-in ready homes or well-kept cabins that can be used now and upgraded later. These are particularly attractive to buyers who want to hedge against rising materials costs.
🧠 Final Thought: Risk Is Part of the Game—But So Is Strategy
There’s no perfect time to invest—but there is a smart way to do it.
In 2025, the smartest buyers are the ones who are asking good questions, building buffers into their budgets, and choosing locations that offer both joy and returns.
📬 Curious about what’s still a good buy in this market? Let’s talk through your goals and create a strategy that fits today’s economy—and tomorrow’s opportunities.