Spring 2025 Surprise: Real Estate Market Bends Toward Buyers

If you’ve been sitting on the sidelines waiting for the right time to buy a home, this spring might finally be your moment. After years of sellers calling the shots, the U.S. housing market is starting to shift in favor of buyers — and new data from Redfin highlights four key trends pointing to a more balanced, even buyer-friendly environment.

Here's what you need to know:

1. Fewer Homes Are Selling Above Asking Price

One of the clearest signs of a changing market is the percentage of homes selling for more than their list price. This spring, that number dropped to 28%, the lowest springtime level in recent years. For comparison:

• 32% of homes sold above asking in spring 2024

• 53% did during the housing frenzy of 2022

This matters because homes going above asking price typically reflect intense buyer competition. Now that fewer buyers are bidding over list price, sellers are under more pressure to price realistically — or even lower than expected.

2. Homes Are Taking Longer to Sell

Another major shift is the pace of home sales. Redfin says pending home sales — deals that are under contract but not yet closed — have fallen 1.1% year-over-year. Only 37.6% of homes are going under contract within two weeks, the slowest pace for spring since 2020.

This tells us buyers aren’t rushing. They're taking time to evaluate options, negotiate better deals, and avoid overpaying — all signs of a less competitive market.

3. There Are More Homes for Sale Than Buyers

There’s currently a surplus of homes on the market — about 500,000 more sellers than buyers, according to Redfin. Why?

Many homeowners who locked in ultra-low mortgage rates during the pandemic held off on selling — a phenomenon known as the “lock-in effect.” But now, more of them are listing their homes due to job changes, return-to-office policies, or life transitions. This growing inventory is giving buyers more choices and reducing pressure to act fast.

4. Sellers Are Lowering Prices or Offering Incentives

The final — and perhaps most telling — trend is the gap between list prices and sale prices. Right now:

• Median list price: $425,950

• Median sale price: $397,000

• That’s a 7% discount — a significant difference

During the housing boom in 2021 and 2022, it was the opposite: buyers often paid more than asking price. Today, sellers are not only adjusting prices but also throwing in extras — like covering closing costs or offering rate buydowns — just to make deals happen.

Market Conditions Are Finally Favoring Buyers

For the first time in years, homebuyers are seeing the market tilt in their favor. With fewer homes selling above asking price and more listings staying active longer, buyers have greater flexibility when making offers. Sellers are realizing they can’t demand 2022-level prices, and many are adjusting their expectations — some by lowering list prices, others by offering added perks to close the deal.

A 7% gap between list and sale prices means serious buyers can negotiate more effectively. The slowdown in bidding wars also allows room to evaluate options rather than rush decisions, something not seen during the pandemic-era buying frenzy.

Spring Brings a Rare Window of Opportunity

This spring offers conditions not seen in recent buying seasons: higher supply, slower sales, and more motivated sellers. While mortgage rates remain a hurdle, Redfin’s forecast of a 1% price dip later this year could give buyers even more room to find value.

For buyers who have been priced out or waiting for the right moment, this season presents a real chance to make a move — especially before any future market rebound or rate changes tighten the window again.

Also Read: Gen Z Is Buying Homes With Siblings to Afford Rising Housing Costs