Spring is here, and with it, the housing market is starting to heat up. If you’ve been considering whether now is the right time to buy or sell, here’s a closer look at why this spring could be the perfect time to make your move.
1. There Are More Homes for Sale
After a prolonged period of limited inventory, the number of homes available for sale is finally on the rise. Recent data from Realtor.com reveals that active listings have increased by 27.5% compared to this time last year.
Take a look at the graph below and follow the green line for 2025. While inventory levels haven’t quite reached pre-pandemic norms (depicted in gray), you’ll notice that they are higher than what we’ve seen in previous spring markets.
Buyers: This means more options are available, allowing you to be more selective in your home search.
Sellers: With more homes on the market than in recent years, you’re more likely to find the perfect place to move to. Plus, with inventory still below typical levels, there will likely be strong demand for your home when it’s time to sell.
2. Home Price Growth Is Moderating
As the number of homes for sale increases, the pace of home price growth is beginning to slow—and that trend is expected to continue into the spring market. This is a natural effect of supply and demand. With more options available, buyers face less competition for each home, easing upward pressure on prices. While price growth may slow, most markets should still see values rise. 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 home prices aren’t dropping nationwide, market conditions vary by location. Some areas are experiencing strong price growth, while others are cooling off or even seeing slight declines.
For Buyers: The slower pace of price increases is good news—it means homes aren’t appreciating as rapidly as before, giving you a better opportunity to buy before prices climb higher. Plus, any home you purchase now is likely to gain value over time, helping you build equity.
For Sellers: Prices are still rising, but a more balanced market means setting the right price is crucial. Overpricing could lead to a longer time on the market, so a competitive price will help attract buyers and generate strong offers.
3. Mortgage Rates Are Stabilizing
One of the biggest challenges for buyers in recent years has been high and unpredictable mortgage rates. But there’s good news—rates have stabilized in recent weeks and even declined slightly since the start of the year. While it’s not a major drop, this stability makes home buying a bit more predictable. As Selma Hepp, Chief Economist at CoreLogic, explains:
“With the spring homebuying season upon us, the recent improvements in mortgage rates may help invite homebuyers back into the market.”
For Buyers: More stable mortgage rates make it easier to plan ahead since you’ll have a clearer picture of your future payments. However, rates may still fluctuate, so staying informed with the help of your agent and lender is key.
For Sellers: With mortgage rates leveling off and dipping slightly, more buyers are gaining confidence and moving forward with their plans. That’s a positive sign for demand as you get ready to sell.
4. More Buyers Are Returning
With increased inventory, a slowdown in price growth, and more stable mortgage rates, buyers are regaining confidence and returning to the market. Demand is on the rise, as evidenced by the Mortgage Bankers Association (MBA) data, which shows an uptick in mortgage applications compared to earlier this year (see graph below).
For Buyers: Making a move sooner rather than later could be a smart strategy before competition increases even further.
For Sellers: More buyers in the market mean greater demand—giving you a better chance to sell your home quickly and at a strong price.
Bottom Line
Curious about what the spring market means for you? Let’s connect and create a strategy that fits your goals this season!
