Spring is traditionally one of the busiest seasons in real estate, and 2025 will be no exception. As flowers bloom and the days grow longer, buyers and sellers alike are eager to make their move. Understanding the latest market trends can help you navigate the season with confidence. Here’s what you need to know about the spring real estate market in 2025.
For Buyers: What to Expect
1. Increased Inventory
Spring typically brings a surge in listings, giving buyers more options. Sellers who held off during the winter months will likely flood the market, leading to greater inventory. The timing aligns with most buyers looking to move in the summer when their kids are out of school.
2. Competitive Market
While more homes will be available, competition is expected to remain strong. The competition you face when buying a home depends on the market type. In a seller’s market, you may deal with bidding wars. In a buyer’s market, there is usually less competition.
Well-priced homes in popular areas can still attract many buyers, even in a neutral market. Popular neighbourhoods may see multiple offers, so buyers should be prepared with pre-approvals and competitive offers.
3. Interest Rate Considerations
Keep an eye on interest rates because they affect how much you can afford. Rates can change, so it’s a good idea to lock in a low rate when you can.
Although waiting might seem wise, it doesn’t always help in the housing market. Right now, two-thirds of homebuyers are holding off until mortgage rates drop before buying a home.
However, while they wait for lower rates, home values keep going up. Home prices have increased by 15% since early 2022.
4. Home Price Trends
According to market projections, home prices are expected to grow moderately compared to previous years. Regional factors, local demand, and inventory levels will influence pricing, so staying updated on market reports is essential. For the updated Sonoma County market trends, you can visit here.
2025 Housing Forecast: Real estate markets are expected to stabilise this year, but buyers shouldn’t expect housing prices to come crashing down, at least not on a national level. Here are a few home price forecasts from top U.S. housing groups:
- Fannie Mae: Home prices will rise 3.5% in 2025 and 1.7% in 2026.
- MBA: Home prices will rise 1.3% in 2025 and 2026, followed by a 2% rise in 2027.
- NAR: Existing home prices will increase to $410,700 in 2025 and $420,000 in 2026.
- Realtor.com: Existing home sales prices will increase by 3.7% in 2025.
- Zillow: Home values will grow 2.6% in 2025.
5. Market Timing
Data suggests that early spring often presents the best opportunities for buyers before the market reaches its peak competitiveness. Monitoring days on market and new listing trends can help buyers make more informed decisions.
For Sellers: How to Stand Out
1. Price Strategically
Spring often brings eager buyers, but overpricing can still lead to stagnation. Ask your agent to perform a comparative market analysis and look through the current listings and the recently sold properties; it is beneficial to compare your prices. Your real estate agent can assist you in determining the appropriate price for your home.
2. Enhance Curb Appeal and Stage for Success
First impressions matter. Simple upgrades like fresh landscaping, a clean exterior, and a welcoming front door can attract more buyers.
Also, consider staging your home to highlight its best features. Staging a home before selling is a strategy used to enhance its visual appeal. This can also help potential buyers imagine themselves living there. Follow our guide to stage your home for a successful sale.
3. Highlight Sustainable Features
If your home includes green upgrades like smart thermostats, solar panels, or efficient windows, highlight these in your listing.
4. Invest in Home Improvement Projects to Increase Resale Value
Increasing your home’s resale value doesn’t always require a complete overhaul. Strategic home improvement projects can significantly boost your property’s appeal, helping it stand out in the market and attract higher offers.
Check out our blog about Home Improvement Projects to Increase Resale Value to see which projects have the best ROI.
5. Leverage Virtual Marketing
Many home buyers have opted to look for a home online before visiting. It is essential to showcase your home with professional pictures that are well-lit, clean, and staged. This will help you emphasise your home’s best features.
Keep in mind that your online listing should contain all of the information they require about the house, the neighbourhood, and the market.
General Market Trends
The supply of homes for sale has seen an increase, with active listings in November 2024 being 12.1% higher than the previous year. While demand remains steady, price growth is expected to be moderate compared to previous years, offering a balanced environment for both buyers and sellers.
Redfin: In February 2025, U.S. home prices were up 3.1% compared to last year, selling for a median price of $425,249. On average, the number of homes sold was down 5.7% year over year, and there were 324,200 homes sold in February this year, down from 343,754 homes sold in February last year. The national average 30-year fixed rate mortgage rate is at 6.8% and up 0.07 points year over year.
Also, mortgage rates are anticipated to remain elevated throughout 2025, potentially hovering around 7%. This projection suggests that borrowing costs will stay high, impacting affordability for prospective buyers.
Whether you’re buying your dream home or selling a property this spring, staying informed about the latest market trends will give you a competitive edge. Partner with a knowledgeable real estate professional like Heidi and Randy to navigate the season with confidence and make the most of this dynamic market.
Happy house hunting and selling!