What to Expect from This Spring’s Housing Market: 4 Key Insights

Spring has arrived, and with it, the housing market is gaining momentum. If you’ve been asking yourself whether this is the right moment to buy or sell, here’s why this season could be your opportunity to make a move:

1. More Homes Are Hitting the Market

After an extended period of low inventory, the number of available homes is finally on the rise. According to recent data from Realtor.com, active listings are up 27.5% compared to this time last year.

Take a look at the graph below and follow the green line for 2025. While inventory hasn’t fully returned to pre-pandemic levels (shown in gray), you can see it’s much higher heading into this spring than it’s been in recent years.

For buyers: You now have more choices and flexibility to find a home that truly fits your needs.

For sellers: A larger inventory means you’re more likely to find your next home. Plus, since supply is still lower than normal, there’s solid demand for your property when you list.

2. Home Price Growth Is Slowing Down

As more homes become available, price growth is beginning to cool — and that trend is expected to continue this spring. Since prices are influenced by supply and demand, increased listings mean less bidding competition, which helps slow price acceleration. However, prices are still climbing in most markets, just at a more moderate pace.

As Freddie Mac puts it:

“In 2025, we anticipate home price growth will continue, but at a slower, more sustainable rate than we saw in 2024.”

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.

For buyers: Slower price increases give you breathing room and more time to make decisions. Any home you purchase now will likely continue to appreciate over time, building your equity.

For sellers: While home values are still rising, pricing realistically is key. Overpricing could cause delays. A competitive price will help you attract serious offers in a market with more balanced conditions.

3. Mortgage Rates Are Steadying

High and unpredictable mortgage rates have made things challenging, but recently, rates have leveled out and even dipped slightly since the start of the year. This stability helps buyers feel more confident and makes planning ahead a bit easier.

According to Selma Hepp, Chief Economist at CoreLogic:

“As the spring buying season kicks off, recent improvements in mortgage rates could help encourage buyers to jump back into the market.”

For buyers: A more stable rate environment helps you budget with greater certainty. Just remember that some volatility is still likely — so stay in close contact with your lender and agent for the latest updates.

For sellers: Calmer rates are bringing more buyers back to the market, increasing the pool of potential interest in your home.

4. Buyers Are Making a Comeback

Thanks to more available homes, moderate price growth, and steadier mortgage rates, buyer confidence is on the rise. Demand is increasing, and recent data from the Mortgage Bankers Association shows mortgage applications are up from earlier this year (see the graph below).

For buyers: You’re not alone — others are getting off the sidelines, too. Be ready to act quickly when you find the right property.

For sellers: A more active pool of buyers means this spring could be a great time to put your home on the market.

Bottom Line

Are you wondering how this spring’s market shifts could affect your plans? The best next step is to connect with a trusted local real estate agent who can help you understand the latest trends and build a strategy tailored to your goals.

With more homes becoming available, price growth beginning to moderate, and mortgage rates finding stability, now is a smart time to consider your next move. Whether you're thinking about buying your first home, upgrading, downsizing, or selling, understanding how these changes impact you personally can make all the difference.

So, how will increased inventory, steadier prices, and more predictable mortgage rates shape your decision to buy or sell this spring? Reach out today and start putting your plan in motion!