Spring is right around the corner, and if you’re thinking about buying or selling a home, you’re probably wondering what the housing market is going to look like this year. In January, existing home sales slowed due to cold weather, low inventory, and elevated mortgage rates. However, warmer weather and the end of the school year always brings an increase in real estate activity. The peak home buying and selling season is spring and early summer. If you’re thinking of buying or selling a home, now is the time to prepare. Let’s dive into the housing forecast and what it means for you!
- Interest rates may stabilize. Over the past couple of years, we’ve seen a lot of ups and downs with mortgage interest rates. Borrowers have faced challenges with elevated mortgage rates, which are expected to average above 6% throughout 2025. The good news? Experts predict that mortgage rates will likely stabilize or even dip slightly heading into spring 2025. Lower rates mean more affordability for home buyers and more demand for home sellers!
- Inventory is slowly increasing. We’re expecting a slight increase in available homes compared to last year. While we’re still in a low-inventory market, more homes on the market give buyers more options and sellers more competition. The supply of homes is projected to improve, with an 11.7% increase in homes for sale and a 13.8% rise in new-home construction, adding approximately 1.1 million new units. If you’re selling, pricing your home correctly and marketing it strategically will be key to getting top dollar.
- Home prices will remain strong. While home price growth is slowing down compared to previous years, home values are still holding steady. Sellers, this means you can still get great value for your home. Buyers, acting sooner rather than later can help you lock in a better deal before prices potentially rise again. Fannie Mae anticipates a 3.5% rise, while the National Association of Realtors predicts a 1.8% uptick in existing home prices this year.
- Homebuyers gain negotiation power. This spring we should also see buyers gaining some negotiation power. With more homes hitting the market, buyers are regaining some leverage. We’re seeing more price negotiations, inspections, seller concessions, and even closing cost assistance than in previous years. This, of course, depends on the area and home, but negotiations are becoming more possible. This is great news if you’ve been waiting for a little more flexibility in the market!
- Demand for homes will surge. Experts are anticipating that demand for homes will surge. Spring is always a hot season for real estate. With better weather, more listings, and buyers eager to make a move before summer, competition is expected to pick up. If you’re a buyer, getting pre-approved early and making strong offers will be crucial. If you’re a seller, now’s the time to prepare your home to stand out.
It won’t be long before spring flowers bloom and more “for sale” signs appear in front yards. Spring brings an influx of home buyers and new listings. If you’re thinking about buying or selling a home this spring, prepare for the busy spring real estate season now! Contact me for a free consultation about your buying or selling needs.
By Launch Kits