As the weather warms up, so does the real estate market. Spring has traditionally been a busy time for home buying and selling, and 2025 is no different. Here’s what you need to know:
- Inventory is Increasing Slightly: After months of low inventory, we’re finally seeing more listings hit the market. However, demand still outpaces supply in most areas.
- Home Prices are Stabilizing: After years of rapid growth, home prices are starting to level out, giving buyers a little more breathing room.
- Interest Rates are Holding Steady: While we saw fluctuations in 2024, rates are currently hovering around 6.5%, which continues to impact affordability for some buyers.
1. Inventory is on the Rise—But Still Limited
In many markets, spring is bringing a welcomed increase in new listings. Homeowners who were waiting for the right moment are finally entering the market. However, despite this seasonal bump, overall inventory levels remain below pre-pandemic averages, keeping competition high in desirable neighborhoods.
2. Home Prices Are Leveling Out
After years of sharp increases, home prices are beginning to plateau in many areas. While some markets still show modest growth, others are seeing price adjustments that reflect a more cautious buyer pool.
3. Interest Rates Are Holding Steady
Mortgage interest rates are currently hovering around 6.5%, giving buyers some predictability as they plan their budgets. Though not as low as during the height of the pandemic, today’s rates are relatively moderate compared to historical trends.
4. Buyer Confidence Is Returning
Buyers who had previously stepped back due to high prices and rate hikes are re-entering the market. This renewed activity is being driven by a combination of price stabilization and growing economic confidence.
What Does This Mean for You?
- Sellers: Now is a good time to list, especially if your home is move-in ready and competitively priced.
- Buyers: Get pre-approved and be ready to move quickly. Well-priced homes are still moving fast.