4 Things To Expect from the Spring Housing Market
Those two factors combined are why the asking price you set for your house is more important today than it has been in recent years.
Spring is in full swing, and the housing market is picking up along with it. And if you’ve been wondering whether now is the right time to buy or sell, here’s the inside scoop on why this spring may be a great time to make your move.
1. There Are More Homes for Sale
After a long stretch of tight inventory, the number of homes for sale is finally improving. According to recent national data from Realtor.com, active listings are up 27.5% compared to this time last year.
Look at the graph below and follow the green line for 2025. You can see, even though inventory levels still haven’t returned to pre-pandemic norms (shown in gray), that number is higher than it has been going into the spring market over the past few years (see graph below):
Buyers: This means you have more choices, and you can be more selective.
Sellers: With more homes available than in recent years, you’re more likely to find what you’re looking for when you move. And knowing that inventory is still below more normal levels means there will be demand for your home when you sell it, too.
2. Home Price Growth Is Moderating
As inventory grows, the pace of home price growth is slowing down – and that will continue into the spring market. This is because prices are driven by supply and demand. When there are more homes for sale, buyers have more options, so there’s less competition for each house. Rising supply and less buyer competition causes price growth to slow, but it should still remain positive in most markets. As Freddie Mac says:
“In 2025, we expect the pace of house price appreciation to moderate from the levels seen in 2024, while still maintaining a positive trajectory.”
3. Mortgage Rates Are Stabilizing
One of the biggest hurdles for buyers over the past couple of years has been high, volatile mortgage rates. But there’s some good news – overall, they’ve stabilized in recent weeks – and have even declined a bit since the beginning of this year. And while that decrease hasn’t been a big drop, stabilizing mortgage rates has helped make buying a home a bit more predictable. According to Selma Hepp, Chief Economist at CoreLogic:
“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 have a better idea of what your future payment might be. But remember, rates will continue to be volatile. So, lean on your agent and your lender to make sure you know what the latest mortgage rate means for you.
Sellers: Slightly lower rates that are starting to stabilize are encouraging more buyers to move forward with their plans. That’s good for demand when you’re planning to sell your house.
4. More Buyers Are Returning
With more inventory, slowing price growth, and stabilizing mortgage rates, buyers are gaining confidence and coming back into the market. Demand is picking up, 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 your competition heats up even more.
Sellers: This is great news for you – more buyers mean a better chance of selling your house quickly.
Quentin Hardy
Senior Loan Officer | NMLS ID: 420639
Phone: (516) 614-4088
Email: Quentin.Hardy@ccm.com
Website: https://ccm.com/lp/DowningxCCM
With decades of experience in mortgage lending, Quentin has built a reputation for delivering exceptional service and results. As a nationally recognized top producer, he ranks among the top 1% of mortgage lenders in the US.
Prospective buyers are free to use any lender of their choosing and are not required to obtain financing through CrossCountry Mortgage, LLC to purchase a home or work with The Downing Group. All loans subject to underwriting approval. Certain restrictions apply. Call for details. This is not a commitment to lend.
