Spring is here, and the housing market is heating up along with the weather. If you’re considering buying or selling a home this season, here’s what you can expect to see in the market—and why now might be an ideal time to make your move.
1. Increasing Home Inventory
After years of limited choices, more homes are finally coming onto the market. Realtor.com reports active listings are up by 27.5% compared to this time last year, giving buyers greater options than they’ve had in recent years.
- For Buyers: More homes mean you can be selective, finding something that closely fits your needs.
- For Sellers: Increased inventory provides you with more options when searching for your next home. However, inventory remains below pre-pandemic levels, meaning your home will likely attract strong interest when priced correctly.
2. Slower Home Price Growth
As the number of homes for sale increases, price growth naturally slows. Freddie Mac forecasts home price appreciation will continue to rise in 2025 but at a more moderate rate compared to recent years.
- For Buyers: Slowing price growth means you have more breathing room, with less pressure from rapidly rising prices. Your investment should continue appreciating over the long term.
- For Sellers: Moderated price growth means realistic pricing is crucial. Setting a competitive price will be key to attracting offers quickly and effectively.
3. Stabilizing Mortgage Rates
High and fluctuating mortgage rates have challenged buyers recently, but now we’re seeing some stabilization. Rates have slightly decreased and become more predictable, giving buyers more confidence.
Selma Hepp, Chief Economist at CoreLogic, notes:
“With the spring homebuying season upon us, recent mortgage rate stability may help encourage more buyers back into the market.”
- For Buyers: Stabilizing rates make it easier to budget and predict monthly mortgage costs. Keep in touch with your lender for the most current rate information.
- For Sellers: Stabilized mortgage rates encourage more buyers to enter the market, potentially increasing demand for your home.
4. Returning Buyer Confidence
With improved inventory, moderated price growth, and stabilizing mortgage rates, buyers are increasingly confident about entering the market again. According to the Mortgage Bankers Association, mortgage application numbers are already rising significantly compared to earlier in the year.
- For Buyers: Moving quickly can help you secure a home before the competition grows.
- For Sellers: Rising buyer interest means your home could sell faster, especially if priced competitively.
Bottom Line
The spring housing market is shaping up positively for both buyers and sellers, with increased opportunities and more favorable conditions than we’ve seen recently. If you’re ready to buy or sell, let’s discuss how to leverage the spring market to meet your real estate goals.