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The Spring is typically thought of as being peak homebuying season with competitive buyers and fast market times, but 2025 aims to be different. This year’s data indicates more than a brief breath of fresh air with a positive buyer’s market.
A buyer’s market is often marked with higher home inventory and more opportunities for cost savings. First-time homebuyers that were waiting for market stability may have better luck finding a property that aligns with their home and financial needs.
The long-awaited return of market advantage is supported by top expert data. For buyers who have been patiently waiting for a sign, this Spring season brings welcomed changes.
Bankrate data from early April reveals that the inventory supply has increased 17% when compared to 2024 data. As inventory grows, the pace of home price growth will slow. Prices are often driven by supply and demand, with more available homes leading to potentially lower home prices and to less competition among buyers.
According to a report from the United States Census Bureau and the Department of Housing and Urban Development, overall house building starts increased 11.2% in February of this year—the highest pace since February of 2024. The National Association of Home Builders cites that builders are cutting home prices to assist in keeping homes affordable. 29% of builders cut home prices last month in March, a small increase from 26% in February.
Data from the Census Bureau confirms builders are constructing smaller homes. Their data confirms that median home sizes shrank 100 square feet between 2023 and 2024. Last year, homes built were 2,150 square feet when compared to 2,250 in 2023.
Realtor.com agrees. From their February 2025 Housing Market Trends report, more smaller homes make up 18% more of the market this year when compared to last year. This increase is welcome news for potential first-time homebuyers or current homeowners who are interested in downsizing.
Wherever you are in your home financing journey, we’re here to support you! Our Loan Originators work personally with borrowers to ensure they’re educated and confident before they reach the closing table. Ready to take advantage of the Spring buying season? Contact us today!
(Sources: National Association of Home Builders, National Association of Realtors, Keeping Current Matters, Realtor.com, Bankrate)
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