Spring Housing Market Shift: Signs of a Buyers Market Emerging

The housing market is experiencing a shift towards a buyer's market this spring, according to Redfin. The share of homes selling above the asking price has hit a recent springtime low of 28%, down from 32% this time last year and 53% during the post-pandemic housing peak in 2022. This trend is prevalent across the country, with the exception of the five most populous metro areas. The slowdown in home sales is evident as properties that do sell are spending more time on the market. Pending home sales have fallen 1.1% in the last year to 87,720 for the four weeks ending June 8, 2025. Additionally, the number of pending sales under contract within two weeks has dropped to 37.6%, down from above 40% this time last year. These numbers are at the lowest for the spring homebuying season since 2020. The disparity between the median list price and median sale price is another indicator of a cooling market. Sellers are asking for a median of $425,950, but buyers are paying a median of $397,000, which is a 7% discount. In 2021 and 2022, the opposite was true – the median sale price was usually higher than the list price. As a result of a cooling market, sellers are forced to lower prices or offer incentives to woo buyers. The mortgage rate lock-in effect is slowly lifting as existing homeowners move for job changes and return to office mandates. Sellers who bought their homes for high prices during the pandemic boom are hoping to recoup their initial purchase, but they're quickly realizing buyers aren't willing to pay 2022 prices anymore. Housing affordability remains a challenge as economic turmoil and recession fears put buyers on edge. In conclusion, the housing market is shifting towards a buyer's market this spring, with sellers facing increased competition and buyers having more negotiating power. Redfin predicts home prices could fall 1% by the end of the year as a result of this cooling market.