Spring 2025 National Housing Market Forecast: Are We Finally Seeing a Shift?

After years of favoring sellers, buyers are finally gaining more power in the housing market—but will it last? As a real estate professional constantly monitoring market conditions, I'm seeing significant changes that buyers and sellers need to understand as we move through Spring 2025.

The Numbers Don't Lie: Inventory Is Rising

Right now, we're seeing the highest level of "for sale" supply in six years, with inventory sitting at a 4.2 months absorption rate. This means it would take, given the current sales pace, roughly 4 months for all active homes to sell if no new listings were added.

Historically, a balanced market where neither buyers nor sellers have a strong advantage has around 4 to 6 months of inventory. Since 4.2 months is on the lower end of that range, it suggests that the market is shifting toward more favorable conditions for buyers, but not necessarily a full buyer's market yet.

Four Key Factors Buyers Need to Watch

1. Rising Inventory Nationwide

The increase in available homes is giving buyers more options than they've had in years. This means less competition for individual properties and more time to make decisions without the pressure of multiple offer situations that were common during the height of the seller's market.

2. Stabilizing Price Growth

Home prices are finally stabilizing, rising at their slowest pace in years. This trend is leading to better affordability for buyers who have been priced out of the market in recent years. While we're not seeing widespread price reductions, the days of double-digit annual appreciation appear to be behind us for now.

3. Increased Negotiation Power

With inventory rising and homes sitting on the market longer, buyers are securing bigger discounts and better terms. From inspection contingencies to closing cost assistance, sellers are more willing to accommodate buyer requests to close deals. Working with an experienced agent who understands these shifts can help you leverage this negotiation power effectively.

4. Interest Rate Considerations

Despite signs of a shifting market, interest rates remain elevated compared to historical norms. These higher rates are keeping some buyers and sellers sidelined. Staying in close contact with a qualified lender is essential for understanding how rate fluctuations affect your purchasing power and for being ready to lock in favorable rates when they appear.

A Limited Window of Opportunity

While conditions are improving for buyers, this window of opportunity may not last long. As more buyers realize there are deals to be had, demand could pick up again, leading to increased competition. The spring and summer months traditionally see more active buyers entering the market, which could quickly shift the balance of power.

For buyers who have been waiting on the sidelines, this Spring could represent your best chance to get a great deal before competition heats up again.

What This Means for Sellers

If you're planning to sell your home in this more competitive environment, strategic preparation is essential. Proper pricing, professional staging, targeted marketing, and working with an agent who understands the shifting dynamics will be key to standing out among the growing inventory.

Gone are the days when sellers could simply list a property and expect multiple offers above asking price within days. However, well-prepared homes in desirable locations are still selling quickly and for good prices.

Let's Create a Winning Strategy

Whether you're looking to buy in this shifting market or need to sell despite the changing conditions, having the right strategy is more important than ever.

I'm here to help you navigate these changes with personalized advice based on your specific situation and the latest market data. The national trends I've outlined here affect local markets differently, and I can help you understand exactly what's happening in your target area.

Ready to discuss how these market shifts impact your real estate goals? Contact me today to schedule a consultation.

This market analysis is based on national data as of Spring 2025. Local markets may vary. For specific information about your local market conditions, please contact me directly.

About Shannon Comstock

Shannon Comstock is a real estate professional with RE/MAX Gold, specializing in helping buyers and sellers navigate changing market conditions. With a data-driven approach and commitment to client education, Shannon provides the insights and strategies needed to succeed in any market environment. Connect with Shannon to learn how her "digital spark and heart" approach sets your home apart.