New Listings Surge Onto the Market This Week—but There’s a Holiday Catch

More sellers are cautiously entering the spring housing market, but high mortgage rates and economic uncertainty are keeping many on edge. Although inventory is improving and more homes are being listed, affordability remains a major challenge as prices continue to rise and mortgage rates stay elevated. This means that, despite increased activity, high costs and limited supply in some regions could make it especially tough for first-time buyers on a budget

"The market has shifted toward higher-priced homes selling as entry-level buyers are priced out of the market, which has led to near-record-high down payments," says Realtor.com senior economic research analyst Hannah Jones. "It is likely this trend will continue until housing affordability improves."

Meanwhile, new listings increased by a stunning 31.2% this week compared with the same time last year, marking the 12th consecutive week of annual growth. But a closer look at the figures reveals that not is all as it seems, and it has to do with Easter.

According to Jones, the huge surge in new listings this week is due in part to low new-listing activity during the same period last year, which coincided with Easter week 2024. But even if the new inventory number is somewhat artificially inflated by the annual comparison with last year's low-activity holiday week, it comes as a welcome boost for buyers looking for fresh options.

Inventory continues growth streak

Active home listings for the week ending March 29 were up 32.3% year-over-year, marking 73 consecutive weeks of annual gains. However, inventory remains below pre-pandemic levels, keeping upward pressure on prices in areas with few homes for sale. Meanwhile, homes are taking longer to sell, sitting on the market two days longer than a year ago

The past few weeks saw the average rate on 30-year fixed home loans gradually rise, before sliding to a three-week low of 6.64% during the week ending April 3.

From the buyers' perspective, a slower market means they have a bit more time to make decisions without having to rush. The delay also offers them more breathing room to negotiate with sellers.

Prices stay flat for the third straight week

For the third week in a row, the national median list price was unchanged from a year ago, extending a 44-week streak of flat or declining annual prices. This price stability suggests the market is adjusting to higher borrowing costs and more available homes. However, price per square foot rose 1.2% year over year, indicating that while overall prices are steady, home values are

Meanwhile, the share of homes with a price cut climbed by 1.1 percentage points, a sign that sellers are grasping for the price point that would make buyers sit up and pay attention.

See more: realtor.com