4 Things To Expect from the Spring Housing Market

4 Things To Expect from the Spring Housing Market

Spring is here, and with it, a vibrant housing market. If you've been thinking about buying or selling, this season might be the perfect time to act. Here’s why:

1. Increased Inventory: The housing inventory, which has been low for a while, is finally increasing. Data from Realtor.com indicates that active listings have risen by 27.5% compared to last year at this time. Although we haven't reached pre-pandemic levels yet, as the 2025 green line on the graph shows, there are more homes available now than in the past few springs. This improvement gives you more options to choose from if you're buying and more competition if you're selling.

Buyers: The increase in available homes means you can afford to be choosier, looking for exactly what meets your needs without feeling pressured to make a quick decision due to scarcity.

Sellers: Although there's more competition with higher inventory, the demand remains strong due to overall lower levels compared to pre-pandemic times. This ensures your home still attracts interest.

2. Moderating Home Price Growth: With more properties on the market, the rapid escalation of home prices is beginning to ease. This moderation in price growth, expected to continue into the spring, comes from a better balance between supply and demand. More options for buyers mean less frenzied competition for each listing, stabilizing prices yet maintaining a positive growth trend in most areas. According to Freddie Mac, this shift makes the market more approachable for buyers without drastically diminishing seller returns.

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

Buyers: Stabilizing mortgage rates mean that the financing side of purchasing a home is becoming more predictable. You won't face as many surprises in terms of sudden rate increases, making it easier to plan your budget and lock in a rate that works for you.

Sellers: As mortgage rates level out, more potential buyers are likely to enter the market, feeling confident about securing manageable borrowing costs. This can increase the pool of interested buyers for your home.

3. Stable Mortgage Rates: After a period of high fluctuations, mortgage rates are showing signs of stability, which is beneficial for both buyers and sellers. Although the rates have not significantly decreased, their stabilization makes the financial aspect of buying homes less daunting and more predictable. Selma Hepp from CoreLogic notes that this stability is crucial for encouraging buyers to commit to purchases, as the fear of rising rates subsides, enhancing overall market activity.

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

Buyers: More stable mortgage rates make it easier to plan your finances, as you have a clearer idea of future payments. However, remember that rates may still fluctuate. It's important to stay informed through your agent and lender about current rates and their implications.

Sellers: The recent stabilization and slight decrease in mortgage rates are encouraging more buyers to proceed with purchases, boosting market demand as you look to sell.

4. More Buyers Are Returning

The combination of increased inventory, slower price increases, and more stable mortgage rates is boosting buyer confidence and drawing them back into the market. This resurgence in demand is evidenced by a rise in mortgage applications since the beginning of the year, according to the Mortgage Bankers Association (MBA).

Buyers: It's wise to act quickly before the market gets even more competitive.

Sellers: More buyers in the market mean a higher chance of selling your house swiftly.

Bottom Line

Have questions about the spring market and what it means for you? Let's connect to discuss your plans.

With an increase in available homes, moderated price growth, and more stable mortgage rates, how do these factors influence your decision to buy or sell this spring?