Spring has arrived, and the housing market is gaining momentum. If you’re considering whether to buy or sell, here’s the lowdown on why this spring could be an excellent time to take action.

1. An Increased Number of Homes are Available for Sale.

The inventory of homes available for sale is finally starting to increase after a lengthy period of low supply. Recent national data from Realtor.com shows that active listings have risen by 27.5% compared to this time last year.

Check out the graph below and track the green line for 2025. You’ll notice that while inventory levels haven't quite bounced back to pre-pandemic norms (indicated in gray), they are still higher than what we’ve seen in the spring market over the last few years.

Buyers: You have a wider range of options, allowing you to be pickier with your selections.

Sellers: There are more homes on the market now compared to the last few years, which means you have a better chance of finding the perfect place when you decide to move. Plus, since inventory is still lower than usual, your home is likely to attract buyers when it’s time for you to sell.

2. Home Prices Are Increasing at a Slower Pace

As more homes become available, the rate at which home prices are increasing is starting to slow down, and this trend is likely to carry over into the spring. This is primarily because home prices depend on supply and demand. With a larger number of homes on the market, buyers have more choices, which reduces competition for individual properties. While increased supply and lower competition can lead to a slowdown in price growth, most markets should still see some positive movement. According to Freddie Mac:

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

While home prices aren't falling on a national scale, it's important to remember that each market behaves differently. Some regions are experiencing significant price increases, whereas others may be stabilizing or even seeing small drops in prices.

Buyers: The slower growth means prices aren't climbing as fast as they used to, which is a good sign. Any home you purchase now is expected to increase in value over time, allowing you to build equity.

Sellers: even though home prices are still on the rise, it’s important to be realistic about your expectations. If you set your asking price too high in this more balanced market, your home may linger on the market longer than you'd like. To draw in potential buyers, setting a competitive price will be essential for receiving offers.

3. Mortgage Rates Are Becoming More Steady

One of the main challenges for homebuyers recently has been the fluctuating and high mortgage rates. However, there's a silver lining – mortgage rates have steadied in the past few weeks and have even seen a slight dip since the start of the year. Although the decrease isn't drastic, the stabilization of mortgage rates has made the home buying process a bit more straightforward. As noted by 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.”
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— Selma Hepp, Chief Economist at CoreLogic

Buyers: When mortgage rates are more consistent, it’s simpler to budget since you can better predict what your monthly payments will look like. However, keep in mind that rates are likely to fluctuate. It's a good idea to work closely with your agent and lender to understand how current rates may impact your situation.

Sellers: With rates easing a bit and beginning to level off, more buyers are feeling ready to make their move. This is a positive sign for demand if you're looking to sell your home.

4. A Growing Number of Buyers Are Coming Back

With more homes available, slower price increases, and mortgage rates leveling off, buyers are feeling more optimistic and returning to the market. We’re seeing a rise in demand, and data from the Mortgage Bankers Association (MBA) indicates that mortgage applications have increased since the beginning of the year.

Buyers: It might be wise to make your move now before the competition picks up even more.

Sellers: This is fantastic for you – more potential buyers increase your chances of selling your home quickly.

Bottom Line

Got questions about what the spring market could mean for you? Let’s chat about how to create your plan this season.

With a greater number of homes on the market, slower price increases, and mortgage rates stabilizing, how might these factors influence your choice to buy or sell this spring?