Spring Housing Market 2025: What Buyers and Sellers Can Expect

Key takeaways

• Buyers have more options and room to negotiate, but should be prepared for high monthly costs.
• Sellers may struggle to find a buyer, but in competitive markets like Chicago, they will likely see more offers.
• However, monthly costs have reached record highs, leaving more buyers and sellers on the sidelines and causing a slow start to the homebuying season.

The spring homebuying season has officially begun, and it’s… weird. Sellers are staying put, and buyers are feeling priced out, causing inventory to grow unevenly across the country. It’s not quite a buyer’s market or a seller’s market – it’s a market in limbo. We asked Redfin Chief Economist Daryl Fairweather to unpack these trends.

“Homebuyers are frustrated, sellers are hesitating, and everyone’s wondering whether the housing market is headed for a crash or a comeback,” said Fairweather. “However, even though the market is slow, trends vary from region to region. In the Midwest, buyers are fighting for every listing, while in the South, sellers are struggling to attract offers.”

Here’s what buyers and sellers should know, and how they can make the most of the 2025 spring housing market. 

>> Read: Second-Time Homebuyer: What to Expect This Time Around

High rates, high prices, and high stakes

Mortgage rates are stubbornly high, hovering around 7% for a 30-year fixed loan. That’s a far cry from the ultra-low rates seen during the pandemic housing boom. Many homeowners who are locked in at those low rates are reluctant to sell, which is keeping a large share of potential inventory off the market.

“Home sellers have record equity in their homes and cheap mortgages,” Fairweather noted. “But many buyers can’t afford to buy with these high mortgage rates and record-high housing costs.”

This mismatch is contributing to a spring housing market that feels “stuck.” While prices haven’t dropped substantially in most regions, they also aren’t accelerating the way they did a few years ago. Buyers face affordability challenges, and sellers have little reason to list – unless motivated by life events. 

>> Read: Should I Sell My House Now?

Not all markets are the same

The national story hides dramatic local differences. Markets in the South, where new construction and investor activity have been more robust, are seeing a surge in listings. That means more competition for sellers and more room for buyers to negotiate.

“In southern markets like Houston, there are a lot of listings out there,” Fairweather said. “Sellers need to work even harder to find a buyer, and they need to price even more conservatively. A growing share are considering concessions to attract offers.”

But the Midwest is telling a different story. In cities like Chicago, demand is still outpacing supply, and bidding wars are relatively common, especially for well-priced, move-in-ready homes.

“Midwestern markets actually have more buyers than there are sellers,” Fairweather explained. “In Chicago, for example, homes are selling easily with multiple offers.”

>> Read: Is Now a Good Time to Buy a House?

What buyers can expect this spring

• More listings: Especially in Southern metros, you’ll see more homes on the market, which could give you negotiating power.
• Flexible sellers: Homeowners are increasingly offering price drops, credits, or covering closing costs.
• Record-low affordability: High rates, record monthly costs, and possible inflation are cutting into budgets.

What sellers can expect this spring

• Buyers are picky and cautious: Many buyers are waiting for the right deal, and overpriced or outdated homes will likely linger on the market. 
• Pricing matters more than ever: Especially in slower markets, like in the South, you’ll need to price competitively and be ready to negotiate.
• Some metros are still competitive: Well-priced homes in the Midwest and Northeast often sell quickly with multiple offers, especially those with in-demand features. 

“As a seller, you need to be willing to negotiate with buyers,” Fairweather said. “You need to be willing to come down in price, especially if your home is sitting on the market.”