With the arrival of spring, the real estate market is also expanding. Here's the inside scoop on why this spring might be a terrific time to make your move if you've been unsure about whether it's time to purchase or sell.
1. There are More Homes for Sale!
The number of properties for sale is finally increasing after a protracted period of low inventory. Recent nationwide statistics from Realtor.com shows that the number of active listings has increased by 27.5% since this time last year.
Follow the green line for 2025 on the graph below. As you can see from the graph below, that figure is greater than it has been entering the spring market over the previous few years, despite the fact that inventory levels haven't yet restored to pre-pandemic norms (shown in gray):
Buyers: This means you have more choices, and you can be more selective.
Sellers: With more homes available than in recent years, you’re more likely to find what you’re looking for when you move. And knowing that inventory is still below more normal levels means there will be demand for your home when you sell it, too.
2. Homes Price Growth is Moderating
The rate of increase in home prices is decreasing as inventory rises, and this trend will persist throughout the spring market. This is due to the fact that supply and demand determine prices.
There is less competition for each home when there are more properties for sale since purchasers have more options. Although price growth slows due to more supply and decreased buyer rivalry, most markets should still see positive price growth. As said by Freddie Mac:
Additionally, each market is unique, even when prices aren't declining nationally. While prices are rising more rapidly in some places, they are cooling off or even declining in others.
Buyers: It's a relief that costs aren't increasing as swiftly as they formerly did due to the reduced growth rate. Any house you purchase now will probably increase in value over time, allowing you to accumulate equity.
Sellers: You may need to lower your expectations while prices are still increasing. Your home may take longer to sell if you overprice it in a more balanced market. Setting a competitive price for your home will be essential to drawing in offers.
3. Mortgage Rates are Stabilizing
Over the past two years, high and fluctuating mortgage rates have been one of the largest obstacles for purchasers. There is some good news, though, since they have generally leveled out in recent weeks and have even somewhat decreased since the start of the year.
Additionally, stabilizing mortgage rates has made home buying somewhat more predictable, even though the decline hasn't been significant. As stated by CoreLogic Chief Economist Selma Hepp:
Buyers: You have a better idea of what your future payment might be when mortgage rates are more steady, which makes planning easier. However, keep in mind that rates will remain unstable. To ensure that you understand what the most recent mortgage rate means for you, rely on your lender and agent.
Sellers: More purchasers are proceeding with their plans as a result of somewhat reduced rates that are beginning to level off. When you intend to sell your home, that will increase demand.
4. Homes Price Growth is Moderating
Buyers are becoming more confident and returning to the market as a result of increased inventory, slower price increases, and stable mortgage rates.
Data from the Mortgage Bankers Association (MBA) indicates that demand is increasing and that there have been more mortgage applications than at the beginning of the year (see graph below):
Buyers: It could be wise to take action now before your competition gets even more intense.
Sellers, you're in luck because a higher number of purchasers will increase the likelihood that your home will sell quickly.
Bottom Line
Are you curious about the implications of the spring market for yourself? Contact Arkansas Real Estate Collective today to discuss your choices!
