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The spring 2025 housing market is shaping up to be a great time for buyers. Home inventory has risen to the highest level in five years, which puts more pressure on sellers to negotiate. This grants buyers more power and more options to get the home they really want at a fairer price. Here are just a couple promising things that more houses on the market could mean for you as a buyer.
1. More Homes on the Market To Choose From
The number of homes for sale in February this year was higher than it’s been in five years, dating back to February 2020. This is the strongest home supply seen since the COVID-19 pandemic, and it’s great news for any hopeful homebuyer. The following graph shows new data from Realtor.com illustrating a significant 27.5% increase in home inventory since last year.
While inventory hasn’t returned to pre-2020 levels yet, experts say that inventory is expected to continue rising this year. More houses available means more choices, more options, and more chances to find the house you want. And according to Danielle Hale, Chief Economist at Realtor.com, more inventory will bring other welcome changes to the market.
“Buyers will not only have more home options . . . but they are also likely to find somewhat lower asking prices and more time to make decisions – all buyer-friendly factors as we inch closer to the busy homebuying season.”
2. Sellers Are More Likely To Accept Price Cuts
When buyers have more options, some homes tend to stay on the market for longer than they otherwise would. This is especially true of homes that are initially priced too high and out of some buyers’ ideal range. When this happens, sellers are forced to drop prices to keep their listing competitive with other houses on the market. And combined with falling mortgage rates, it means a more normalized market and better deals for buyers.
Based on data from Realtor.com, the number of listings with price reductions has increased over the last few years. In fact, price reductions have even risen above the levels seen in 2020, as the graph below illustrates.
Price reductions are a great sign that sellers are more willing to negotiate and compromise today. Compared to the market’s more normal years of 2017–2019, today’s number of price cuts is much closer to what’s typical. For most buyers, this is a welcome relief, and a promising sign of where the market is headed.
For you, this could mean fewer compromises and a better chance to negotiate on price, closing costs, or even repairs. Not every seller is willing to adjust their price, but a higher home inventory means many more will. Either way, healthier inventory levels mean you have more leverage in the market than buyers have had in years.
Conclusion
If you’ve been watching the market and waiting for the right moment to buy, this spring could be the perfect time. Home supply is up, mortgage rates are down, and more sellers are cutting prices to attract eager buyers. Best of all, these trends are expected to continue into the spring, making for a stronger, healthier market for everyone.
For help navigating your unique local housing market, consider connecting with an expert real estate agent. They can talk to you about what’s happening in your area and get you started on your home search. Reach out today and we’ll connect you with a local expert who can find the home you’re looking for.
