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We’ll cut to the chase: As the spring home-buying season gets going, home buyers may find themselves with more time to shop and more homes to choose from across most of the country. That’s good news if you’ve been struggling to find a home that checks all of your boxes.

Buyers and sellers may also be on a relatively equal footing when it comes to bargaining power, at least for now. “At this time last year, the market had already turned in sellers’ favor,” says Chief Economist Skylar Olsen. “Now, spring is here, and we’re still in neutral territory.”

Of course, the circumstances in an individual city, or even neighborhood, can vary, and an experienced local agent can help you develop a strategy tailored to the conditions where you’re planning to buy or sell. Here’s an overview of what trends you’re likely to see on a national level and how to prepare for the months ahead.

When does the spring home-buying season begin?

The largest share of sellers tend to list their homes for sale in the spring, starting in March and peaking in late May and early June. The timing coincides with the largest influx of buyers, many of whom are trying to time their move for summer when their kids are out of school. The combination of more sellers and more buyers makes the spring the busiest time in real estate.

Will there be less competition in 2025? 

Real estate is a seasonal business, and spring is usually when the market heats up. But mortgage rates, which have been volatile for more than two years, also create their own “season”: When rates drop, buyers tend to flock to the market to take advantage of the greater buying power that comes with those lower rates. When rates jump, buyers tend to pull back.

How much competition you’ll face depends on whether you’re shopping in a buyer’s market or a seller’s market, whether mortgage rates are dropping, rising or staying steady, and how well local industries and their employees are faring economically. If you’re in a seller’s market, there’s a greater chance you could get into a competitive bidding situation. The opposite is true if you’re in a buyer’s market. But well-priced homes in popular neighborhoods can also draw higher competition, even if the market is neutral. 

Keep in mind that well-priced homes tend to go fast. Nationally, the typical time it takes a home to go from listing to pending was 23 days in February — 15 days less than a month earlier, but six days slower than this time last year.

Will there be more affordable homes to choose from?

That depends on what your budget is and the market you’re in, but generally, you can expect a greater selection of homes for sale in spring than at other times of year.

Some homes linger on the market for months. They’re counted as part of the available for-sale inventory, which is much higher this spring than last year, but still down from where it was before the pandemic. In February, the pool of homes for sale grew to 1.04 million, more than any February since 2020 and 15% more than this time last year.

Where are there the most new listings?

The factor to watch is new listings. A rise in new listings reflects the homeowners who have made the decision to newly list their homes for sale. 

In February, new listings increased by 2.8% from the previous month. However, compared to the same time last year, there were 4.7% fewer — an indication that sellers are still holding back.  

New listings are rising fastest in the West and the Southwest. That’s likely due to the pace of new construction in those regions. New construction not only adds to the supply of homes, but also frees up some existing homeowners to sell since new homes can lure tenured homeowners back to the housing market. 

Meanwhile, new listings are declining the fastest in the Midwest, Northeast and Florida. The quick run-up in prices in those areas, coupled with higher insurance rates in Florida are the likely reasons for this decline.

Will interest rates drop this year?

Interest rates have been bouncing around, but economists predict they’ll be higher for longer, ending the year at about 6.4%. These high mortgage rates and dampened buyer demand have contributed to slow home value appreciation. Mortgage rates affect what you pay each month, and even small changes can impact the size of your monthly payment. Mortgage rates trended down in early March. Whether they stay there or go lower is anyone’s guess given the uncertainty around tariffs and how they’ll affect inflation, the broader economy and industries that supply the materials builders need to construct homes.

How to prepare to buy this spring

1. Get your credit score in the best possible shape

If you’re planning to finance your purchase with a mortgage, you want your credit score to be in top shape. Having a good credit score helps you qualify and get a better rate. A minimum FICO credit score of 620 is required for most loan types.

2. Get pre-approved to see what you can afford in your market

Showing sellers you’re financially prepared to buy is hugely important, especially in competitive markets. One way to do this is to get pre-approved for a mortgage through OC Federal. Pre-approval is when a lender commits to lending you a certain amount of money under specific conditions. 

3. Talk to a local agent

An experienced agent who knows your market can help you craft a strategy tailored to your personal circumstances and what you’re looking for in a home. Different tactics may be required depending on whether you’re in a buyer’s or a seller’s market. 

4. Shop according to your budget

Dreaming is fun, but if you’re serious about buying a home you want to focus on homes you can afford.

5. Learn more about home buying

If you have questions about mortgages stop by one of our five convenient branch locations and speak to a Loan Zone Officer. Knowing what to expect can remove some of the stress from the process, and being familiar with market dynamics and how they evolve can help make you a more confident shopper and buyer.