The U.S. housing market is beginning to favor buyers for the first time in years, marking a significant shift after a long period of seller dominance. According to real estate experts, spring 2025 is shaping up to be the most buyer-friendly season since the COVID-19 pandemic disrupted the industry.
Realtor.com’s senior economist Joel Berner says the current market conditions are encouraging for potential buyers who have been sitting on the sidelines. The housing slowdown of 2024, which recorded the lowest number of existing home sales since 1996, may be turning the tide toward a more balanced market. Increased inventory, more frequent price reductions, longer days on the market, and lower listing prices compared to last year are creating more favorable circumstances for those looking to purchase a home.
Berner notes that even without a significant drop in mortgage rates, the market is trending in a buyer-friendly direction. Lower rates, while helpful, can sometimes have the opposite effect by fueling demand and pushing prices up. However, the current market offers more opportunities because of the growing number of listings and more flexibility from sellers.
Mauricio Umansky, founder of The Agency real estate firm, agrees that the market is becoming more favorable to buyers. While he doesn’t anticipate the kind of deep discounts seen during the 2008 housing crash, he does believe that buyers are in a strong position to negotiate. He sees this as a time when serious buyers can make bold offers and take advantage of greater inventory and less competition.
The increase in inventory is a key factor. As more homeowners decide it’s finally time to move, due to life changes or simply timing, the market is seeing a steady rise in listings. This shift is giving buyers more options and leading sellers to be more flexible with pricing. While asking prices may not fall drastically, reductions are becoming more common, reflecting a softening in seller expectations.
Higher mortgage rates over the past few years have led to what many experts call the “golden handcuff” effect, where homeowners with ultra-low pandemic-era interest rates feel locked into their current homes. This reluctance to sell has limited housing supply. However, that effect is beginning to wear off as life circumstances force more people to list their homes, even if rates haven’t dropped to ideal levels.
Current mortgage rates remain in the mid-6% range, with Freddie Mac reporting an average of 6.65% for a 30-year fixed mortgage. Realtor.com’s original forecast suggests that rates could gradually decline into the low 6% range by the end of the year. While this would offer some relief, many buyers are moving forward regardless of rate movement, driven by necessity rather than timing.
Recent data from Realtor.com reveals that the housing market is becoming more dynamic. February marked the 16th consecutive month of year-over-year inventory growth, with the number of active listings up by 27.5%. Sales activity is also on the rise, with homes under contract increasing by 18.2% compared to the previous year. Homes are sitting on the market slightly longer, averaging 66 days—almost a week more than last year—giving buyers more breathing room to make decisions.
Additionally, the gap between asking prices and final sale prices is widening as buyers become more assertive in their negotiations. Sellers are beginning to respond to this new reality by adjusting prices accordingly, which further signals the shift to a more balanced, and even buyer-favorable, housing environment.
Although this is not a dramatic downturn reminiscent of the 2008 crisis, the signs point to a healthier, more flexible housing market. For those who are financially ready, spring 2025 presents a rare window of opportunity to find a home in a more accommodating market.