Real Estate Trends 2025: What First-Time Buyers Need to Know About the Market Challenges for First-Time Buyers** But it’s not all sunshine and rainbows. First-time buyers will face some unique challenges in this new era. Home prices are expected to remain high, making it a struggle to find something that fits your budget. This means you might be competing with investors who have cash on hand, making the process even more daunting. Let’s not forget about interest rates. With potential hikes, it could become more expensive to take out a mortgage, which means you’ll want to pay close attention to financial planning. The combination of these factors creates a competitive and sometimes intimidating buying environment.