4 Things to Expect from the Spring Housing Market
Spring is in full bloom, and with it comes a fresh wave of activity in the housing market. Whether you're a buyer eager to find your dream home or a seller wondering if now is the right time to list, this season brings new opportunities and shifts worth paying attention to. The real estate landscape is always evolving, and understanding the current market trends can help you make more informed decisions. So, if you've been on the fence about buying or selling, here's why this spring might be the perfect time to make your move.
1. There Are More Homes for Sale
After several years of tight inventory, the number of homes on the market is finally increasing. According to recent data from Realtor.com, active listings are up by 27.5% compared to the same time last year.
Looking at the bigger picture, while inventory levels still haven’t returned to pre-pandemic norms, there are significantly more choices for buyers compared to previous spring markets.
-
For Buyers: More inventory means you have a wider selection of homes to choose from, giving you the ability to be more selective and negotiate better deals.
-
For Sellers: With a greater number of homes available, you’re more likely to find your next home while still benefiting from strong demand for your current property.
2. Home Price Growth Is Moderating
As inventory rises, home price growth is slowing—but not stopping. Housing prices are determined by supply and demand, and with more homes available, buyers have more negotiating power. This has led to a more balanced market where price growth is easing. However, in most areas, home values are still appreciating, just at a slower rate.
Freddie Mac predicts that home prices will continue to rise in 2025 but at a more moderate pace compared to previous years. That means:
-
For Buyers: Homes are still a great long-term investment, and with slower price growth, you have more time to find the right one.
-
For Sellers: Overpricing could mean your home sits on the market longer. Pricing your home competitively will be key to attracting serious buyers.
3. Mortgage Rates Are Stabilizing
High and volatile mortgage rates have been a challenge for buyers in recent years. But there’s good news—rates have begun to stabilize and have even dipped slightly since the start of the year. While they remain higher than the historically low levels seen in previous years, this newfound stability makes it easier for buyers to plan their purchases with more confidence.
Selma Hepp, Chief Economist at CoreLogic, notes that these improvements in mortgage rates may encourage more buyers to reenter the market.
-
For Buyers: Stable mortgage rates allow for better financial planning and give you a clearer idea of your potential monthly payment.
-
For Sellers: Lower, more predictable rates will help bring more buyers into the market, increasing the chances of selling your home faster.
4. More Buyers Are Returning
With stabilizing mortgage rates, increased inventory, and slowing price growth, buyer confidence is making a comeback. More people are resuming their home search, and recent data from the Mortgage Bankers Association (MBA) shows an increase in mortgage applications compared to earlier this year.
-
For Buyers: Acting now could give you an advantage before competition heats up further.
-
For Sellers: A rise in buyer demand means a better chance of receiving competitive offers on your home.
Final Thoughts
The spring housing market is showing signs of increased activity, making it a promising time for both buyers and sellers. Whether you're looking to purchase your first home, upgrade to a new space, or sell your current property, understanding these trends will help you navigate the market with confidence.
If you’re considering making a move this season, now is the time to connect with a knowledgeable real estate agent. They can help you develop a strategy tailored to your goals and ensure you make the most of the opportunities this spring market has to offer.
MAKE YOUR SAN FRANCISCO REAL ESTATE DREAMS A REALITY
When it comes to buying or selling in areas like San Francisco (Marina, Pacific Heights, Cow Hollow), Charles Jacob is your trusted partner. With expert market knowledge and a commitment to exceptional service, he can help you find answers to all your questions. Get in touch with Charles Jacob today to step into the exciting San Francisco market.
