After nearly two years of a frozen housing market, existing home sales are finally showing signs of life.
According to the National Association of Realtors, sales of previously owned homes rose in recent months as more inventory trickled onto the market.
It's not a boom by any stretch, but for buyers who spent 2023 and 2024 losing bidding war after bidding war, the shift is noticeable.
The biggest change is simple math: there are more homes for sale.
Sellers who sat on the sidelines waiting for rates to drop got tired of waiting, and listings have climbed in many metros.
More supply means fewer bidding wars, more time to think, and in some markets, the return of contingencies.
That's a meaningful change for anyone who got outbid five times last spring.
The median existing home price continues to hover near record highs in most regions, and in some areas it's still climbing.
The reason is that even with more inventory, we're nowhere near pre-pandemic levels.
Builders aren't producing enough starter homes, and homeowners with sub-4% mortgages have little incentive to sell and trade into a 6%+ loan.
They've eased from their 2023 peak but have been bouncing around in the mid-6% range, and every swing changes what a monthly payment looks like.
On a $400,000 loan, the difference between 6.5% and 7% is roughly $130 a month.
That's grocery money, and buyers are doing that math before they ever tour a house.
For sellers, the message is less comfortable.
The days of listing on Thursday and having three offers by Sunday are largely over in most markets.
Overpricing now leads to stale listings and price cuts, not bidding wars.
Homes that are updated, priced realistically, and move-in ready are still selling quickly, but the margin for error has shrunk.
First-time buyers are the group most affected by all of this.
They don't have equity from a previous home to roll into a down payment, and they're competing against cash buyers and repeat buyers who do.
Programs like FHA loans, VA loans, and state down payment assistance programs are more important than ever, and many buyers are using them to get a foothold.
Renters watching all of this might be wondering whether now is the moment to buy.
The honest answer is that it depends on your local market, your job stability, and how long you plan to stay.
Buying makes sense when you'll be in one place for at least five years and your budget can absorb the payment, taxes, insurance, and maintenance without stretching.
The takeaway: the housing market is thawing, not overheating.
Buyers have a bit more room to negotiate, sellers need to be realistic, and rates are still the single biggest lever on affordability.
If you're in the market, get pre-approved, know your number, and don't fall in love with a house before you've run the math. **Our take:** A slightly cooler market with more choices is healthier than the frenzy of 2021, even if prices stay stubborn.
Final Thoughts
If you've been waiting on the sidelines, the leverage is shifting your way, but patience and a solid budget still beat trying to time the market.