Spring 2025 Marks a Turning Point for Homebuyers
The U.S. housing market is finally showing signs of shifting in favor of buyers, and this spring could be the most buyer-friendly season since the early days of the pandemic. After several years of tight inventory, elevated prices, and rising mortgage rates, more homes are hitting the market and sellers are starting to budge on price.
Joel Berner, senior economist at Realtor.com, believes the timing couldn’t be better for buyers who have been waiting patiently on the sidelines. Following a sluggish 2024, which turned out to be the slowest year for existing home sales since 1996, momentum is starting to pick up—and in a direction that benefits those looking to buy. A growing number of listings, longer market times, and a noticeable increase in price cuts are all contributing to a more balanced market.
Berner points out that this shift isn’t solely driven by mortgage rates. While lower rates can certainly draw more buyers into the market, they also tend to increase competition and push prices up. What’s happening now is different. The current conditions—more inventory, softer pricing, and sellers showing more flexibility—are creating organic opportunities for buyers to negotiate better deals.
Mauricio Umansky, founder of luxury brokerage The Agency, shares Berner’s view. He doesn’t expect a repeat of the dramatic price drops seen during the 2008 housing crash, but he agrees that buyers have more leverage than they’ve had in years. He says now is a good time to make strong offers and be bold, as the market is more receptive to negotiation than it has been in quite some time.
The increase in available homes is a major reason for the market shift. Sellers who had previously held off—many of whom locked in mortgage rates of 3% or lower during the pandemic—are finally starting to list their properties. This “lock-in effect” had created a bottleneck in supply over the last few years, but life events like job changes and growing families are forcing many to move despite the higher rates.
While mortgage rates haven’t dropped dramatically, they are projected to decline modestly. Realtor.com’s forecast expects rates to fall into the low 6% range by the end of 2025. For context, the current average on a 30-year fixed mortgage stands at 6.65% according to Freddie Mac. But even without dramatic rate changes, market behavior is shifting because of increased activity and changing seller attitudes.
Recent housing data backs up these observations. The number of homes actively listed has grown for 16 consecutive months and jumped 27.5% in February compared to the same time last year. Sales activity is also on the rise, with the number of homes under contract increasing by 18.2% year-over-year. However, homes are taking longer to sell, averaging 66 days on the market—almost a full week longer than last year.
This slower pace, combined with more listings and more cautious buyers, is widening the gap between asking and selling prices. As Umansky notes, sellers are now more likely to face offers below their original list price, and in order to close deals, they’ll need to be more realistic. If current trends continue, more price adjustments may be on the horizon.
In short, while it may not be a full-fledged buyer’s market just yet, spring 2025 is offering a rare window of opportunity for buyers who’ve been waiting for better conditions. With more choices, motivated sellers, and a bit more negotiating power, it might finally be the right time to make a move.