Spring 2025 offers best conditions for U.S. homebuyers

This spring could be the best time for American homebuyers in five years. Mortgage rates are falling and many sellers are lowering their prices. This change is creating more opportunities for buyers. The spring season typically sees a surge in home sales. However, high home prices and mortgage rates in the past few years have kept many potential buyers away. Some experts worried that sales would drop this spring, despite the usual activity in the housing market. While there are more homes for sale, prices are still rising in most areas. A report by Realtor.com states that it could take over seven years to bridge the supply gap if construction continues at the current pace. The median sale price for homes was $424,647 in February, which is up 3 percent from last year. Last month, the number of homes for sale grew by 11.8 percent. However, the number of new listings decreased slightly compared to last year. These factors have forced many sellers to lower their asking prices. About 18 percent of homes had their prices cut in February. Mortgage rates have improved as well. As of March 20, the 30-year fixed mortgage rate is 6.67 percent. This marks nine weeks below 7 percent. Lower rates can help buyers afford homes and might encourage more homeowners to sell. Real estate expert Nick Gerli believes many sellers are adjusting their prices to appeal to buyers. He suggests that this spring presents a unique opportunity for buyers. However, prices remain near record highs, making it still feel expensive to purchase a home. Some real estate agents are advising sellers to improve their homes and lower their prices. They note that it feels more like a buyer's market now. Despite the high costs, there are still chances for buyers to negotiate. Looking ahead, uncertainty looms over the U.S. economy. Experts estimate a 40 percent chance of recession this year. If it happens, it could further impact the housing market and affect buyers’ confidence and purchasing power.