Key takeout
Buyers have more options and negotiable, but they need to prepare for the higher monthly costs. Sellers may have trouble finding buyers, but in competitive markets like Chicago, they will see more offers. However, monthly expenses have hit record highs, leaving more buyers and sellers on the sidelines, slowing the start of the home view-in season.
The spring home view-in season has officially begun, but that’s… odd. Sellers are staying, buyers feel they are taking on the price, and stocks are growing unevenly across the country. It’s not a buyer’s market or a seller’s market at all. It’s the Limbo market. We asked Daryl Fairweather, chief economist at Redfin, to unleash these trends.
“Homebuyers are frustrated, sellers are hesitant. I’m wondering if the housing market is heading for a crash or comeback,” Fairweather said. “However, despite the slow market, trends vary from region to region. In the Midwest, buyers fight for all listings, while in the South, sellers struggle to attract offers.”
Here are some things buyers and sellers need to know, and how to make the most of the housing market in spring 2025:
High prices, high prices and high interests
The mortgage rate is stubbornly high, hovering about 7% on a 30-year fixed loan. That’s far from the ultra-low rates seen during the pandemic housing boom. Many homeowners trapped at these low prices are reluctant to sell, and keep most of their potential inventory away from the market.
“Home sellers have record fairness in their homes and have cheap mortgages,” Fairweather noted. “However, many buyers can’t afford to buy with these high mortgage fees and record home costs.”
This discrepancy contributes to the spring housing market that feels “stuck”; Prices haven’t fallen significantly in most regions, but the way they did it a few years ago hasn’t accelerated. Buyers face affordable challenges, and sellers have little reason to list unless they are motivated by events in their lives.
>>Read: Should I sell my house now?
Not all markets are the same
The national story hides dramatic local differences. Listings are surged in southern markets where new construction and investor activity are more robust. That means more competition for sellers and more room for buyers to negotiate.
“In a southern market like Houston, there’s a lot of listings,” Fairweather said. “Sellers need to work even harder to find buyers. They need to set prices even more conservatively. The increased share is considering concessions to attract offers.”
But the Midwest talks about something else. In cities like Chicago, demand remains above supply, and bidding wars are relatively common.
“There are actually more buyers in the Midwest market than sellers,” Fairweather explained. “In Chicago, for example, a house sells easily with multiple offers.”
>>Read: Is this the best time to buy a house?
What buyers can expect this spring
Other listings: More houses can be seen in the market, especially in the metros in the southern part of the country. This could potentially provide negotiation power. Flexible Sellers: Homeowners are increasingly offering to cover price declines, credit or closing costs. Record Affordable Prices: High rates, record monthly costs and potential inflation have been reduced to your budget.
What sellers can expect this spring
Buyers are noisy and careful. Many buyers are waiting for the right deal, and high or outdated homes can remain on the market. Pricing is more important than ever. Especially in slower markets, like the South, you need to be prepared for competitive pricing and negotiations. Some metros are still competitive. Affordable homes in the Midwest and Northeast are especially sought-after features, and are often sold quickly on multiple offers.
“As a seller, you need to be willing to negotiate with the buyer,” Fairweather said. “You need to be willing to get off at the price, especially if your home is sitting at the market.”
