4 Things To Expect from the Spring Housing Market

Check out the graph below and follow the green line for 2025. You’ll notice that while inventory levels haven’t quite bounced back to pre-pandemic norms (shown in gray), they’re still higher than they’ve been heading into the spring market in the past few years.

Buyers: this is great news for you! With more homes on the market, you’ve got more options and can be a bit more picky with your choices.

Sellers: this works in your favor too! With more homes on the market than in recent years, you’ll have a better chance of finding the perfect place for your next move. Plus, since inventory is still lower than normal, there’s still solid demand for your home when you’re ready to sell.

2. Home Prices Are Rising More Slowly

As more homes hit the market, home price growth is starting to slow down—and that trend is expected to continue this spring. It all comes down to supply and demand. With more homes available, buyers have more choices, which means less competition for each one. That increase in supply helps cool price growth, though prices should still trend upward in most areas. 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.”

Prices aren’t dropping nationwide, but every market is different. Some areas are seeing stronger price growth, while others are cooling off—or even experiencing slight price drops.

Buyer:, the good news is that prices aren’t climbing as fast as they were—that’s a bit of a breather! Plus, any home you buy now is still likely to appreciate over time, helping you build equity in the long run.

Sellers: while home prices are still going up, it’s important to set the right expectations. In a more balanced market, overpricing could mean your home sits longer than you’d like. Pricing it competitively from the start will be key to attracting buyers and getting strong offers.

3. Mortgage Rates Are Leveling Out

One of the biggest challenges for buyers in the past couple of years has been high and unpredictable mortgage rates. But here’s some good news—they’ve started to level out recently and have even dipped a little since the start of the year. While it’s not a huge drop, this stability makes the homebuying process a bit 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 makes planning ahead a lot easier since you’ll have a clearer idea of what your monthly payment might look like. But keep in mind, rates can still fluctuate. That’s why it’s important to stay in touch with your agent and lender—they’ll help you navigate any changes and understand what the latest rates mean for you.

Sellers: with mortgage rates stabilizing and even dipping a bit, more buyers are feeling confident about making a move. That’s great news for you because it means solid demand when you’re ready to sell!

4. Buyers Are Making a Comeback

With more homes on the market, price growth slowing down, and mortgage rates stabilizing, buyers are feeling more confident and jumping back in. Demand is on the rise, and according to data from the Mortgage Bankers Association (MBA), mortgage applications have increased since the beginning of the year (check out the graph below):

Buyers: making your move sooner rather than later could be a smart play—especially before more competition starts picking up!

Sellers: this is great news for you! More buyers in the market mean a better chance of selling your home quickly.