Homebuyers

Hoping to Purchase a Home This Spring? What Homebuyers Need to Know

Spring is generally real estate’s busiest season. And this year may shape up to be one of the most competitive in recent memory.

Mortgage rates have been hovering in the mid-6% range, home prices remain stubbornly high—and there aren’t quite enough houses to go around. But for buyers who understand where exactly the housing market is, opportunity is still knocking.

So, if you’re hoping to buy a home, you’ll need a mix of strategy, patience, and a willingness to act fast. Let’s break down what buyers should keep in mind as the spring housing market approaches.

Mortgage rates may have reached a new normal

Mortgage rates haven’t exactly plummeted. But compared to last year’s dizzying highs (which saw rates hit 7.22% in early May), rates have at least slowed their wild rollercoaster ride.

The average rate was 6.65% for 30-year, fixed-rate loans in the week ending March 27, according to Freddie Mac. ​

Indeed, mortgage rates have trended down since mid-January.

“Many would-be buyers have been on the sidelines for the last several years,” said Cara Ameer, a Coldwell Banker real estate agent licensed in California and Florida. “But buyers need to stop waiting as there is no perfect time to buy real estate. Interest rates are what they are.”

Buyer tip: Consider an interest rate lock. If you find a home and get pre-approved at a rate you can handle, lock it in—just in case rates creep up again before you close.

Housing stock is still in recovery mode

One of the biggest issues for buyers to consider in this year’s spring housing market is that there just aren’t enough homes for sale.

At the end of February 2025, housing inventory sat at 1.24 million available homes—up 5.1% from January but still below pre-COVID-19 pandemic levels, according to data for the National Association of Realtors (NAR). That means there are only three and a half months of housing on the market if sales continue at the current pace.

For perspective, a balanced market typically has about a six-month supply of homes. That means we’re still in seller’s market territory. ​

However, where you’re thinking of buying matters.

If you’re in Texas, you might find more homes to choose from, as active listings have surged by 27.5% compared to last year, according to Realtor.com’s February Monthly Housing Report.

In contrast, the Northeast and Midwest are facing shortages, with housing stock still below half of their pre-pandemic levels. ​

Buyer tip: If your first choice of neighborhood is out of reach, consider looking at nearby towns where homes may be more affordable. Also, be ready to move quickly—great listings may not sit on the market for long.

Home prices remain high

If you’re waiting for home prices to drop before buying, you may be waiting a long time. Prices aren’t just holding steady—they’re still climbing.

Yet the market is stabilizing. While home values are still rising, the pace has cooled from the sky-high surges of the past few years.

In February 2025, the median existing home price hit $398,400, according to NAR. (This doesn’t include newly constructed homes.) That’s up 3.8% from last year—marking the 20th straight month of year-over-year growth.

Why? Simple math: Low inventory and steady demand equals higher prices. Yet, while sellers still have the edge, the spring market likely won’t see anywhere near the buying frenzy of 2021.

“The good news is you likely won’t be competing with tons of offers,” said Ameer.

Buyer tip: Make a strong offer upfront. In competitive markets, lowballing may work against you. If a home is priced right, offering the asking price (or slightly above) could make the difference between winning and losing out.

Price reductions rise in some markets

While the national trend shows rising home prices, some regions are experiencing notable price reductions, offering potential opportunities for savvy buyers.

Indeed, the share of homes with price reductions grew to 16.8%, up from 14.6% last February, according to data from Realtor.com.

“Some sellers wait too long to lower their prices after their initial high listing goes overlooked. When they finally adjust the price to a more reasonable level, the listing is often stale and doesn’t attract much interest,” advised Cindy Allen, a real estate agent at DFW Moves in Dallas and Fort Worth, Texas.

“This could be your opportunity to negotiate with a motivated seller,” said Allen.

Buyer tip: Keep an eye on listings in your area to find possible price cuts. Act quickly when you find a deal.

The home affordability factor

With both mortgage rates and home prices high, affordability is the biggest challenge for buyers in 2025.

In many cases, this may mean a buyer should consider making trade-offs—maybe a townhouse instead of a single-family home, or a longer commute in exchange for lower prices.

Buyers who are open to different property types, locations, or even fixer-uppers will have a better shot at landing a home they can comfortably afford.

Buyer Tip: Be clear on your “must-haves” vs. “nice-to-haves.” A second bathroom? It may be a must. A chef’s kitchen with quartz countertops? It may not be essential. Knowing where you’re willing to compromise will make your search much easier.

The bottom line

Should you buy this spring? That’s a personal decision, but being informed can help you make it.

The key is knowing what you can afford, being prepared, and staying flexible.

Get pre-approved early. (Sellers may not take you seriously without it.) “Financed buyers can close a sale much more quickly than in the past,” said Allen.

Keep an eye on mortgage interest rates. (If they drop, you might be able to refinance later.) And know your dealbreakers. (You might not get everything on your wish list.)

For buyers who play it right, there’s still plenty of buying opportunity this spring.