More Homes Hit The Market, But Pending Sales Dip As Buyers Hesitate

It’s finally spring, and for the first time in a while, the housing market is starting to show signs of life. After a long stretch of minimal activity, more “For Sale” signs are cropping up across the country. Inventory is climbing, which is good news for buyers who’ve been waiting for more choices—but the big question is: will people actually take the plunge?

Even with more homes on the market, buying isn’t exactly easy right now. Mortgage rates are still hovering around 6.65% for a 30-year fixed loan, which, while slightly better than earlier in the year, remains high by historical standards, according to NPR. And home prices haven’t cooled much either.

Over the past five years, the median price of a home has surged by about 47%, making affordability a major concern for many would-be buyers. Still, there are reasons for optimism. In February, the number of existing homes for sale was up 17% compared to the same time last year, and March saw a 10% increase in new listings, according to NPR.

The so-called “lock-in effect”—where homeowners with ultra-low mortgage rates felt trapped in their current homes—may be easing as life events, job changes, or simple restlessness nudge people to move. Realtor.com data shows that sellers are getting more flexible, with more than 17% of listings featuring price reductions in March—the highest level for any March since 2016.

But it’s not all smooth sailing. Pending home sales—homes under contract—were actually down 5.2% in March compared to a year ago, suggesting many buyers are still hesitant. That hesitation is especially evident in competitive markets, where buyers like one couple in Connecticut have found themselves outbid even after offering well above asking. Others decide to sit tight, are worried about job stability, or are just burned out from the hunt.

Meanwhile, new rules around how agents are paid have added another layer of complexity. Buyers now have to sign an agreement outlining their agent’s compensation before they can even tour homes, and sellers are no longer automatically covering the buyer’s agent commission. While many agents say the change hasn’t had a huge effect yet, the added negotiations aren’t exactly making the process easier, according to NPR.

So while more homes are finally hitting the market, uncertainty still hangs over this spring season—leaving buyers and sellers alike wondering if this will be the moment when things finally start moving again.

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