With the arrival of spring, the real estate market is also expanding. Here’s the inside scoop on why this spring might be a great time to make your move if you’ve been unsure about whether it’s time to buy or sell.
1. There Are More Homes for Sale
The number of homes for sale is finally increasing after a protracted period of low inventory. Recent nationwide data from Realtor.com shows that the number of active listings has increased by 27.5% since this time last year.
Follow the green line for 2025 on the graph below. As you can see, that number is higher than it has been entering the spring market over the previous few years, despite the fact that inventory levels haven’t yet returned to pre-pandemic norms (shown in gray).
Buyers: This gives you more options and allows you to be pickier.
Sellers: You’re more likely to find what you’re looking for when you move because there are more homes available than there were in previous years. Additionally, there will be demand for your house when you sell it because inventory is still below more typical levels.
2. Home Price Growth Is Moderating
The rate of increase in home prices is decreasing as inventory rises, and this trend will persist into the spring market. This is due to the fact that supply and demand determine prices. There is less competition for each home when there are more homes for sale because buyers have more options. Although price growth slows due to increased supply and decreased buyer competition, most markets should still see positive price growth. As stated by Freddie Mac:
“We anticipate that, while still continuing on a positive trajectory, the rate of home price appreciation in 2025 will slow from the levels observed in 2024.”
Additionally, each market is unique, even though prices aren’t declining nationally. While prices are rising more rapidly in some places, they are cooling off or even declining in others.
Buyers: It is a relief that prices are not increasing as rapidly as they once did due to the slower rate of growth. Any house you purchase now will probably increase in value over time, allowing you to accumulate equity.
Sellers: As long as prices continue to rise, you may need to modify your expectations. Your home may take longer to sell if you overprice it in a more balanced market. Setting a competitive price for your home will be essential to drawing in offers.
3. Mortgage Rates Are Stabilizing
Over the past two years, high and fluctuating mortgage rates have been one of the largest obstacles for buyers. There is some good news, though, as they have generally leveled off in recent weeks and have even slightly decreased since the start of the year. Additionally, stabilizing mortgage rates has made home buying somewhat more predictable, even though the decline hasn’t been significant. As stated by CoreLogic Chief Economist Selma Hepp:
“The recent increases in mortgage rates may encourage homebuyers to return to the market as the spring homebuying season approaches.”
Buyers: Planning is made easier when mortgage rates are more stable because you can better estimate your potential future payment. However, keep in mind that rates will remain unstable. To ensure that you understand what the most recent mortgage rate means for you, rely on your lender and agent.
Sellers: More purchasers are proceeding with their plans as a result of somewhat reduced rates that are beginning to level off. When you intend to sell your home, that will increase demand.
4. More Buyers Are Returning
Buyers are becoming more confident and returning to the market as a result of increased inventory, slower price growth, and stable mortgage rates. Data from the Mortgage Bankers Association (MBA) indicates that demand is increasing and that there have been more mortgage applications than at the beginning of the year (see graph below):
Buyers: It might be wise to take action now before your competition gets even more intense.
Sellers: You are in luck because a higher number of buyers will increase the likelihood that your home will sell quickly.
Bottom Line
Are you curious about the implications of the spring market for yourself? Speak with a local real estate agent about creating your strategy for this season.