Spring Home-Buying Season 2025: What Economists Believe & Say

Are you struggling to find a home that meets your needs? Well, experts say the spring housing season might offer some good news. The season is already underway, and for most homebuyers, it’s starting on a positive note. The increase in inventory and the extra time to select homes comfortably have made the spring housing market quite buyer-friendly.

Experts suggest that this year, buyers and sellers are on equal footing in the spring real estate market. Last year, the market was entirely in favor of sellers. However, remember that these trends may vary depending on the region or neighborhood.

Spring Housing Market: Expert Predictions 2025

When does the spring housing market start?

The spring housing season typically begins in March and peaks by late May or early June. This is when most sellers list their properties for sale. Coincidentally, it’s also when many buyers enter the market. This combination of increased sellers and buyers makes the spring market dynamic and lively.

How competitive will the housing market be in 2025?

Spring is typically a busy season in real estate, and the market is generally seasonal. However, mortgage rates also play a significant role in shaping market activity. If mortgage rates are low, buyers tend to flood the market because lower rates mean greater purchasing power. On the other hand, if rates are high, buyers may pull back.

As a result, the level of competition you face will depend on whether you’re in a buyer’s market or a seller’s market. Mortgage rates—whether they’re dropping, rising, or remaining steady—also factor into this. The state of the economy, particularly local industries and the earning potential of residents, further influences the market.

In a seller’s market, conditions are more competitive, while in a buyer’s market, competition is usually lower. However, even in a neutral market, well-priced homes in popular neighborhoods can attract competitive bidding.

An interesting observation: In February 2025, the average time it took for a home to go from listing to pending was 23 days. This is 15 days shorter than January 2025 but six days longer than February 2024.

Will homes be more affordable this spring?

Affordability depends on the buyer’s budget and the specific market. Generally, there are more homes available in spring than at other times of the year. Homes that don’t sell quickly are added to the for-sale inventory, further increasing supply.

So, what does the spring market look like in 2025?

The “home for sale” inventory is higher this year (up 15%) compared to last year. However, it still hasn’t reached pre-COVID levels. In February 2025, the inventory rose to 1.04 million homes, much higher than most Februarys since 2020.

New Listings: What’s the Status?

New listings are crucial to watch. An increase in new listings shows that homeowners are choosing to list their homes for sale.

In February 2025, new listings rose by 2.8% compared to January 2025. However, compared to February 2024, they were down by 4.7%. This suggests that sellers are still hesitant to flood the market with homes.

New listings are growing fastest in the West and Southwest, mainly due to a rise in new construction in these regions. New construction increases inventory and also motivates existing homeowners to sell their newly built homes.

Meanwhile, new listings are declining in the Northeast, Midwest, and Florida. In Florida, rising prices and high insurance rates are likely contributing to this slowdown.

Will home loan rates drop in 2025?

Mortgage rates remain high. Experts’ mortgage interest rate predictions are that rates will likely remain elevated, closing the year at around 6.4%. These high rates, combined with reduced buyer demand, have contributed to slow home value appreciation, pushing more markets into neutral territory.

Buyer Tips for the 2025 Spring Housing Market

Here are some quick tips for you to buy your home in the spring of 2025.

1. Focus on improving credit score:  A solid credit score is important for securing a mortgage. The higher your score, the better your probability of qualifying and getting a competitive rate. Most loans need a minimum score of 620.

2. Get pre-approved: Pre-approval shows sellers that you’re financially ready to make an offer. It also helps you understand how much a lender is willing to loan you, which is crucial in a competitive market.

3. Work with a local agent: An experienced local agent can help you through the complexities of the spring real estate market. They can help you make a custom strategy based on whether it’s a buyer’s or seller’s market. Different approaches are needed for each.

4. Keep your budget in mind: Stay within your budget. Use mortgage calculators, like those from Total Mortgage, to see what you can afford and how much your monthly payments will be.

5. Stay informed: Knowledge is power. Stay up-to-date on spring housing market conditions and familiarize yourself with real estate terms, trends, and processes. This will help you make well-informed decisions throughout your home-buying journey.

Spring Housing Season: Experts' Insights & Total Mortgage’s Assistance Can Help!

As the spring home-buying season unfolds in 2025, there are promising signs for buyers, with increased inventory and more time to find the right home. However, it's essential to stay informed and prepared, as market conditions can shift depending on local trends and mortgage rates. 

Whether you’re looking to take advantage of the buyer-friendly market or understand competitive bidding in certain areas, Total Mortgage is here to help. Speak to us today to start your home-buying journey with confidence and explore our mortgage solutions that fit your needs. Let’s make your dream home a reality this spring!