1. Stable Interest Rates

After years of volatile interest rates, rates have finally stabilized at 6.5-7% (for a 30-year fixed-rate mortgage). While this may feel high compared to the historic lows homebuyers in the 21st century have been accustomed to, they’re still very low compared to the double-digit rates buyers saw in the 80s, which hit over 18% in 1981.

What Stable Interest Rates Mean for Homebuyers

Stable rates increase predictability. Instead of waiting for rates to fall, you can make a move now, knowing that rates are not likely to see a sizable decline in the immediate future.

Importantly, if rates do fall in the future, homeowners can refinance to secure the lower rate (assuming they qualify for the refinance based on factors like credit scores, income, and current home value).

What Stable Interest Rates Mean for Sellers

Stable rates increase the appeal for buyers, which can mean more buyers competing for your listing.

2. More Buyers Entering the Market

After years of hoping that interest rates would fall to pre-pandemic levels, buyers are tired of waiting. They’re ready to make a move now, knowing that waiting for rates to fall could sideline them for years.

We’re already seeing more applications for new home loans as buyers prepare to make offers!

What More Buyers in the Market Means for Homebuyers

For homebuyers, more buyers mean increased competition. If you find a home you love, you may need to make an offer quickly to secure that property before other buyers come knocking. 

What More Buyers in the Market Means for Sellers

More buyers mean a wider pool of people who may be interested in buying your home. This can increase your chances of a quick sale for top dollar!

3. Modest Home Value Growth

Home prices are still increasing nationwide but at a much slower rate than we saw during the pandemic era. Some localized markets are seeing prices stabilize or even dip slightly. However, prices are expected to recover as more buyers enter the market as spring progresses into summer.

What Modest Value Growth Means for Homebuyers

You won’t have the extreme stress buyers experienced in 2021 and 2022 when home prices were increasing by the week. You can buy under calmer circumstances and then watch your new home grow in value over the long term.

What Modest Value Growth Means for Sellers

The major gains of the early 2020s are done, and you can cash out by selling this spring.

4. More Homes for Sale

As of March 22, 2025, home listings were up 29.2% compared to last year. Some of this increased inventory is due to new construction, but much of this is due to sellers being ready to make a move. Just like buyers, sellers have been watching for interest rates to come down, knowing that they’ll likely need a new mortgage at today’s rates to purchase a new home when they sell their current home. And, just like buyers, sellers now see that today’s interest rates are here to stay, and they’re ready to make a move!

What More Inventory Means for Homebuyers

More listings mean more homes to choose from. This increases your chances of finding your dream home.

What More Inventory Growth Means for Sellers

More inventory means more competition. Be ready to price your listing correctly and help it show well to incentivize buyers.

5. More Buyers Requesting Concessions

Before August 2024, it was standard practice for sellers to pay a real estate fee to their agent, who would split the fee with the buyer’s agent. This long-standing system ensured that buyers received representation without adding to their homebuying costs. Regulatory changes in 2024 made buyers responsible for covering their agent’s fees.

However, some buyers are unable to cover this expense on top of their down payment and closing costs. And sellers see the value in helping cover this cost to make sure buyers can afford to make an offer to purchase their listing. So we’re seeing buyers request a financial concession from sellers to help cover this cost. And we’re seeing many sellers happy to pay this concession out of their proceeds to close the deal.

What More Concessions Mean for Homebuyers

Paying your real estate agent may be your responsibility, but many sellers are happy to help. So if you are concerned about covering your agent’s fee, let them know so they can include a seller concession request when you make an offer on a home.

What More Concessions Mean for Sellers

Sellers should be prepared to see concession requests in incoming purchase offers. Whether you accept the request is up to you, but it can make a big difference in getting the house sold!

Navigate the Spring Housing Market with De Costa Realty

The spring housing market is heating up, and the experts at De Costa Realty are ready to help you navigate a faster-paced market! Whether you’re buying, selling, or investing, contact us today for your private consultation.