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4 Things To Expect from the Spring Housing Market

Spring is in full swing, and the housing market is picking up along with it. And if you’ve been wondering whether now is the right time to buy or sell, here’s the inside scoop on why this spring may be a great time to make your move.

1. There Are More Homes for Sale

After a long stretch of tight inventory, the number of homes for sale is finally improving. According to recent national data from Realtor.com, active listings are up 27.5% compared to this time last year.

Look at the graph below and follow the green line for 2025. You can see, even though inventory levels still haven’t returned to pre-pandemic norms (shown in gray), that number is higher than it has been going into the spring market over the past few years (see graph below):

Buyers: This means you have more choices, and you can be more selective.

Sellers: With more homes available than in recent years, you’re more likely to find what you’re looking for when you move. And knowing that inventory is still below more normal levels means there will be demand for your home when you sell it, too.

2. Home Price Growth Is Moderating

As inventory grows, the pace of home price growth is slowing down – and that will continue into the spring market. This is because prices are driven by supply and demand. When there are more homes for sale, buyers have more options, so there’s less competition for each house. Rising supply and less buyer competition causes price growth to slow, but it should still remain positive in most markets. As Freddie Mac says:

“In 2025, we expect the pace of house price appreciation to moderate from the levels seen in 2024, while still maintaining a positive trajectory.”

And while prices aren’t dropping at the national level, every market is different. Some areas are seeing stronger price growth, while others are cooling off or even seeing some price declines.

Buyers: The slower pace of growth means prices aren’t rising as quickly as before – and that’s a relief. Any home you buy now is likely to appreciate in value over time, helping you build equity.

Sellers: While prices are still rising, you might need to adjust your expectations. Overpricing your house in a more balanced market could mean it takes longer to sell. Pricing your house competitively is going to be key to attracting offers.

3. Mortgage Rates Are Stabilizing

One of the biggest hurdles for buyers over the past couple of years has been high, volatile mortgage rates. But there’s some good news – overall, they’ve stabilized in recent weeks – and have even declined a bit since the beginning of this year. And while that decrease hasn’t been a big drop, stabilizing mortgage rates has helped make buying a home a bit more predictable. According to Selma Hepp, Chief Economist at CoreLogic:

“With the spring homebuying season upon us, the recent improvements in mortgage rates may help invite homebuyers back into the market.”

Buyers: When mortgage rates are more stable, it’s easier to plan ahead because you have a better idea of what your future payment might be. But remember, rates will continue to be volatile. So, lean on your agent and your lender to make sure you know what the latest mortgage rate means for you.

Sellers: Slightly lower rates that are starting to stabilize are encouraging more buyers to move forward with their plans. That’s good for demand when you’re planning to sell your house.

4. More Buyers Are Returning

With more inventory, slowing price growth, and stabilizing mortgage rates, buyers are gaining confidence and coming back into the market. Demand is picking up, and data from the Mortgage Bankers Association (MBA) shows an increase in mortgage applications compared to the start of the year (see graph below):

Buyers: Acting sooner rather than later could be a smart move before your competition heats up even more.

Sellers: This is great news for you – more buyers mean a better chance of selling your house quickly.

Bottom Line

Do you have questions about what the spring market means for you? Connect with a local real estate agent and talk about how to craft your plan this season.

With more homes for sale, slowing price growth, and stabilizing mortgage rates, how will this impact your decision to buy or sell this spring?

Rising Inventory Means This Spring Could Be Your Moment

Want to know two reasons this spring might finally be your time to buy? Inventory has grown and sellers may be more willing to negotiate as a result. That means you’ve got more options and more power than buyers have had in years. Let’s break it down.

1. You Have More Homes To Choose From

The number of homes for sale this February was higher than it’s been in any of the past five Februarys – and that’s great news for your home search. The graph below uses the latest data from Realtor.com to show the supply of homes on the market has grown by 27.5% in just the last year:

a graph of blue barsMore choices for your search is a good thing – and experts also say that inventory is projected to continue rising this year, which is even better. It means it should be easier to find something that checks your most important boxes. But that’s not all this does for you. Danielle Hale, Chief Economist at Realtor.com, explains some of the other perks of more inventory, beyond just having more homes to consider:

“Buyers will not only have more home options . . . but they are also likely to find somewhat lower asking prices and more time to make decisions – all buyer-friendly factors as we inch closer to the busy homebuying season.”

2. You May Find Sellers Are Doing Price Cuts

Now that buyers have more options, some homes are sitting on the market a little longer – especially those that were priced too high from the start. And the result is more sellers are having to drop their prices to draw buyers back in. Just take a look at the numbers.

According to Realtor.com, the number of listings with price reductions has gone up compared to the last few years (see graph below):

This is a sign sellers are more willing to compromise today. If you look back to more normal years in the market (2017–2019), you’ll see that the number of price cuts happening today is much closer to what’s typical – and for most buyers, that’s a big relief.

What does that mean for you? It could give you a better chance to negotiate – whether that’s on price, closing costs, or even repairs. While not every seller will adjust their price, more of them are willing to do it – giving you more leverage than buyers have in quite a while.

Bottom Line

If you’ve been on the sidelines, waiting for the right time to buy, this spring could be the opening you’ve been hoping for.

Of course, every market is different, and working with a local expert can help you work through your options. If you want to talk about what’s happening in your area or get started on your home search, connect with a local real estate agent.

How does today’s rising inventory impact your homebuying plans?

Should I Buy a Home Right Now? Experts Say Prices Are Only Going Up

At one point or another, you’ve probably heard someone say, “Yesterday was the best time to buy a home, but the next best time is today.”

That’s because nationally, home values continue to rise. And with mortgage rates still stubbornly high and home prices going up, you may be holding out for prices to fall or trying to time the market for that perfect rate. But here’s the truth: waiting for the right moment could cost you in the long run.

Home Prices Are Still Rising – Just at a More Normal Pace

The idea that prices will drop dramatically is wishful thinking in most markets. According to the Home Price Expectations Survey from Fannie Mae, industry analysts are saying prices are projected to keep rising through at least 2029.

While we’re no longer seeing the steep spikes of previous years, experts project a steady and sustainable increase of around 3-4% per year, nationally. And the good news is, this is a much more normal pace – a welcome sign for hopeful buyers (see graph below):

What This Means for You

While it’s tempting to wait it out for prices or mortgage rates to decline before you buy, here’s what you’ll need to consider if you do.

  • Tomorrow’s home prices will be higher than today’s. The longer you wait, the more that purchase price will go up.
  • Waiting for the perfect mortgage rate or a price drop may backfire. Even if rates dip slightly, rising home prices could still make waiting more expensive overall.
  • Buying now means building equity sooner. Home values are rising, which means your investment starts growing as soon as you buy.

Let’s put real numbers into this equation. If you purchase a $400,000 home today, based on these price forecasts, it’s expected to go up in value by more than $83,000 over the next five years. That’s some serious money back in your pocket instead of being left on the sidelines (see graph below):

Why Aren’t Prices Dropping? It’s All About Supply and Demand

Even though there are more homes for sale right now than there were at this time last year, or even last month, there still aren’t enough of them on the market for all the buyers who want to purchase them. And that puts continued upward pressure on prices. As Redfin puts it:

“Prices will rise at a pace similar to that of the second half of 2024 because we don’t expect there to be enough new inventory to meet demand.”

While every market is different, most areas will continue to see moderate price growth. Some may level off a bit, but a major national drop? Not likely.

Bottom Line

Time in the Market Beats Timing the Market

If you’re debating whether to buy now or wait, remember this: real estate rewards those who get in the market, not those who try to time it perfectly.

Yes, today’s housing market has its challenges, but there are ways to make it work —exploring different neighborhoods, considering smaller condos or townhomes, asking your lender about alternative financing, or tapping into down payment assistance programs. The key is making a move when it makes sense for you rather than waiting for a perfect scenario that may never arrive.

Want to take a look at what’s happening with prices in your local market? Whether you’re ready to buy now or just exploring your options, reach out to a local agent so you have a plan in place that’ll set you up for success.

Do You Know What Your House Is Really Worth?

a map of the united states with a couple of potted plants

Some Highlights

  • Over the past 5 years, home prices have risen dramatically. If you own a home, that means your house may be worth a lot more than you think. ​
  • Nationally, prices are up nearly 60% since 2019. ​And, if selling has been on your mind, you can use that bigger-than-expected return to power your next move.
  • If you want to know how much your home is worth in today’s market, reach out to a local agent.​ The number may surprise you.

Stay informed