4 Things To Expect from the Spring Housing Market

Spring is here, and so is a boost in the housing market. If you’ve been thinking about buying or selling, now might be the perfect time. Here’s why this spring could be a great opportunity to make your move.

 

1. There Are More Homes for Sale

After a long period of limited inventory, the number of homes for sale is finally on the rise. Recent national data from Realtor.com shows that active listings have increased by 27.5% compared to last year.

Take a look at the graph below and follow the green line for 2025. While inventory levels haven’t quite returned to pre-pandemic norms (shown in gray), they’re still higher than they’ve been in recent years as we head into the spring market (see graph below).

Buyers: This gives you more options, allowing you to be more selective in your search.
Sellers: With more homes on the market than in recent years, you’re more likely to find your next home. Plus, since inventory is still below normal levels, there will likely be strong demand for your home when you sell.

 

2. Home Price Growth Is Moderating

As inventory increases, the pace of home price growth is slowing down, and this trend is expected to continue into the spring market. Prices are driven by supply and demand—when there are more homes available, buyers have more options, leading to less competition for each property. With rising supply and fewer buyers competing, price growth slows, but it should still remain positive in most markets. As Freddie Mac puts it:

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

While prices aren’t dropping nationally, each market is different. Some areas are experiencing stronger price growth, while others are cooling or even seeing slight declines.

Buyers: The slower pace of growth means prices aren’t rising as quickly as they once were, which is a relief. Any home you purchase now is likely to appreciate over time, helping you build equity.

Sellers: Although prices are still rising, you may need to adjust your expectations. Overpricing your home in a more balanced market could mean it takes longer to sell. Pricing your home competitively will be key to attracting offers.

 

3. Mortgage Rates Are Stabilizing

One of the biggest challenges for buyers in recent years has been high, fluctuating mortgage rates. The good news is that they’ve stabilized recently and have even dropped slightly since the beginning of the year. While the decrease hasn’t been huge, the stabilization of mortgage rates has made the homebuying process more predictable. As Selma Hepp, Chief Economist at CoreLogic, puts it:

“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’ll have a better sense of what your future payments might be. However, remember that rates can still fluctuate, so make sure to rely on your agent and lender to understand how the latest rates impact you.

Sellers: The slight dip in rates and their stabilization are encouraging more buyers to move forward with their plans. This is great news for demand when you’re looking to sell your home.

 

4. More Buyers Are Returning

With more inventory, slowing price growth, and stabilizing mortgage rates, buyers are gaining confidence and returning to the market. Demand is on the rise, 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 competition heats up even more.

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

 

Bottom Line

Have questions about what the spring market means for you? Let’s connect and discuss how to create your plan for the season.

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