As spring arrives and the traditional homebuying season kicks off, the housing market is beginning to thaw. After years of red-hot demand and sky-high prices, buyers are finally starting to regain some leverage — but the journey is still far from easy.

Interest rates remain elevated, and home prices haven’t dropped dramatically. Yet for those able to navigate the affordability gauntlet, a surprising upside awaits: more options. Inventory levels are rising, homes are sitting longer, and sellers are becoming more willing to negotiate. It’s not quite a buyer’s market, but it’s a far cry from the frenzy of 2020 and 2021.

The Market Is Warming Up

Since mid-2022, the real estate market has been in a deep freeze. Mortgage rates soared alongside home prices, freezing out millions of would-be buyers and causing a sharp drop in sales. But recent data suggests a thaw is underway.

In February, the number of active listings was up nearly 28% compared to a year earlier. That’s a substantial improvement given that home prices and interest rates haven’t changed much in that time. According to Realtor.com’s senior economic research analyst Hannah Jones, the increase in inventory is a promising sign of the market inching back toward balance.

Price cuts are also gaining traction. In January, nearly 23% of sellers reduced their asking price — the highest share for that month since Zillow began tracking the data in 2018. Homes are also lingering longer: the national median time on market last month was 66 days, five days more than the same time last year.

Regional Realities: Where Buyers Hold the Cards

Buyer power is still very much location-dependent. In parts of coastal Florida, like Cape Coral, Miami, and Fort Lauderdale, buyers have the upper hand. These areas have seen a surge in available supply — more than 10 months’ worth — partly due to rising insurance premiums and assessments following stricter building code enforcement after the 2021 Surfside condo tragedy.

In contrast, demand in colder markets like Rochester and Buffalo, New York, has remained strong despite limited supply, driving fierce competition even amid snow-covered listings.

For Michael and Maria Mancini, first-time buyers in the Orlando area, the shifting landscape presented both opportunities and challenges. They toured more than a dozen homes, but competition was still present. Of the seven homes they viewed in a single day, four went under contract within 48 hours. Their eventual purchase, a $470,000 home in a gated community, came after another buyer’s deal fell through. Though they successfully negotiated a new roof, their request for a mortgage rate buydown was declined.

In Texas, agent Scott Neal is seeing a similar duality. In the Dallas-Fort Worth area, top-tier homes are attracting multiple offers, while dated or overpriced properties are sticking around. Buyers, he noted, are more selective than ever. “They’re not willing to pay top dollar for something that’s not top quality,” he said.

What’s Ahead for Spring Buyers?

Experts agree: this spring will bring more inventory, but affordability will remain the defining challenge. In markets like Colorado Springs, where the median home lists for nearly $480,000, real estate agent Kevin James Bond says many residents are priced out altogether. Without household incomes in the six-figure range, homeownership remains out of reach.

There is, however, a small silver lining. Mortgage rates have slowly edged downward in recent weeks, reaching a two-month low of 6.76%. While still high by historical standards, the dip offers some relief to buyers watching every decimal point on their monthly payments.

Still, for a full recovery in the housing market, more than just a few percentage points off interest rates will be needed. A meaningful boost in inventory, paired with a continued softening of prices, will likely be necessary to open the door for more buyers.

“There are plenty of people who are ready and willing to buy,” said Jones. “But right now, it’s just not feasible for many of them.”

Spring 2025 is shaping up to be one of cautious optimism for homebuyers. The days of lightning-fast sales and waived inspections are fading. Instead, buyers are finding more choices, more time to decide, and more room to negotiate. But the challenge of affordability still looms large.

For those prepared to navigate today’s market — with patience, flexibility, and strong financing — the season could bring opportunity. The housing market isn’t fully healed, but after years of turbulence, it’s finally showing signs of balance.

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