Home listing prices inched up this week for the first time since June 2024, signaling a possible thaw in the spring selling market—but obstacles may still lie ahead.
The national median list price edged higher by 0.6% compared to the previous year—a modest gain marking the first discernible increase after 10 months of declining or flat prices.
But despite this bit of good news, home sellers are not out of the woods yet.
“While this uptick may signal a warming trend at the national level, local markets may tell a different story,” warns economist Jiayi Xu in the Realtor.com® Weekly Housing Report. “In areas where home shoppers rely on stock market funds for down payments, ongoing uncertainty and volatility in the financial market could tighten buyer budgets, dampen demand, and potentially put downward pressure on prices.”
According to Xu, much uncertainty remains around the Federal Reserve’s next move on interest rates, with President Donald Trump pushing for cuts to the U.S. central bank’s benchmark rates and clashing with Chair Jerome Powell.
Other factors shaping the housing market include the direction of the 10-year Treasury yield—and ultimately, the trajectory of the mortgage rates, which have long been stuck in the 6% to 7% range, leaving would-be home sellers feeling locked in.
The latest data from Realtor.com shows that price per square foot—a measure that helps account for changes in the size of homes hitting the market—increased by 1% from this period in 2024.
“This suggests that demand remains relatively strong and that home prices are rising on a per-unit basis, not just due to larger or higher-end listings entering the market,” says Xu.
At the same time, the share of for-sale homes with a price cut remained flat year over year, which is a sign that sellers are not budging on pricing amid continued economic volatility.
After 14 straight weeks of growth, the number of newly listed homes fell by 1.6% from April 2024, mainly due to the timing of the Easter holiday, which was celebrated later this year than last.
Economists, however, believe that it is only a temporary setback.
“Looking ahead, we expect new listings to rebound in the coming week—a typical pattern that follows the end of a holiday,” notes Xu. “In fact, the recent momentum in listings made this March the most active March for new inventory in three years. As a result, buyers will continue to have more fresh options to choose from.”
In good news for house hunters, the overall number of homes actively for sale nationwide soared 30% from the previous year, continuing a 76-week streak of annual gains.
“This year-over-year growth in inventory gives buyers more choices and encourages more competitive pricing among sellers,” says Xu.
Taking a long view at America’s inventory, the number of homes on the market is still below pre-pandemic levels, and the supply gap is expected to continue putting upward pressure on prices in areas suffering from a dearth of options.
Homes linger longer on the market
The pace of the nationwide housing market has not seen an annual boost in nearly a year. This week, the typical home waited for a buyer four days longer than during the same period in 2024.
In fact, for three consecutive weeks, homes have been spending an average of four additional days on the market, giving homebuyers more time to weigh their options and make a decision.
“This slowing pace signals a slightly more buyer-friendly environment compared to recent years, offering greater opportunities for negotiation and comparison shopping,” says Xu.