The U.S. housing market is showing signs of renewed momentum as buyers slowly re-enter the market, spurred by easing mortgage rates and a growing inventory of available homes. According to the National Association of Realtors (NAR), existing home sales rose 4.2% in February, surpassing economists’ expectations and signaling a shift in market dynamics.
At Duke Properties, we recognize how these changes impact buyers, sellers, and investors. Understanding the forces driving these trends is essential to making strategic real estate decisions in this evolving landscape.
Mortgage Rates Ease, Opening Doors for Buyers
After a period of volatility, mortgage rates have declined in recent weeks, offering much-needed relief to prospective homebuyers. The average rate on a 30-year mortgage fell to 6.65% in mid-March—still significantly higher than pandemic-era lows but a step in the right direction for affordability.
For the past two years, high mortgage rates have sidelined many buyers, but as rates gradually decline, more consumers are testing the market once again. This trend is expected to build momentum as the spring homebuying season progresses.
Rising Inventory Creates More Buying Opportunities
In addition to lower mortgage rates, home shoppers now benefit from a wider selection of available properties. NAR reports that there were 1.24 million unsold homes at the end of February, marking a 17% increase from last year.
This rise in inventory is a crucial development, as it provides buyers with more options and helps ease price pressures in some markets. Homes are also spending more time on the market, with the average listing sitting for 42 days before selling, compared to 38 days a year ago.
For buyers, this means less competition and more negotiating power. Sellers, on the other hand, must be strategic in pricing and marketing their properties to stand out in a market that is slowly rebalancing.
Home Prices Reach Record Highs—But Will Growth Slow?
Despite increased inventory, home prices continue to rise, reaching an all-time high for February. The national median home price climbed 3.8% year-over-year to $398,400, marking the 20th consecutive month of price gains.
However, as inventory levels rise and mortgage rates remain elevated, price growth may begin to moderate. The market is not expected to see sharp declines, but in areas with a surplus of homes, sellers may need to adjust pricing expectations to attract buyers.
What This Means for Buyers, Sellers, and Investors
With these shifting dynamics, real estate strategies must evolve.
For Buyers: A Better Market for Making a Move
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More inventory means buyers have a wider selection and more bargaining power.
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Easing mortgage rates may improve affordability, though waiting too long could mean missing prime opportunities.
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Homes are taking slightly longer to sell, giving buyers time to explore options rather than rush into bidding wars.
For Sellers: Pricing and Strategy Are Key
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Properties are staying on the market longer, meaning sellers must price competitively and focus on curb appeal, staging, and marketing.
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In high-demand areas, sellers still have an advantage, but rising inventory means buyers have more choices.
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Timing is crucial—listing a property now may yield better results than waiting for further shifts in supply and demand.
For Investors: Market Shifts Present New Opportunities
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The increase in available homes creates more investment opportunities, particularly in markets where demand remains steady.
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Rental demand may stay strong in areas where affordability challenges persist, making rental properties an attractive investment.
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The combination of gradually easing rates and rising inventory could present strategic entry points for investors looking to expand their portfolios.
Looking Ahead: A Market in Transition
As we move further into 2025, the housing market is poised for continued gradual adjustments. Mortgage rates will remain a key factor influencing both buyer activity and home prices. Additionally, inventory levels will determine whether the market continues to favor sellers or shifts toward a more balanced dynamic.
At Duke Properties, we are committed to helping our clients navigate these changes with confidence. Whether you’re looking to buy, sell, or invest, staying informed about market trends will help you make the most of emerging opportunities.
Now is the time to explore your real estate options. Contact Albert Dweck and the Duke Properties team today to discuss how you can position yourself for success in this evolving market.