Spring 2025 Housing Market Shift: Why Buyers Are Finally Gaining Ground

Introduction

The housing market in spring 2025 is showing signs of change. While prices are still elevated, new dynamics are unfolding. Inventory is rising, homes are sitting on the market longer, and sellers are beginning to lose the upper hand. At 1st Private Capital, we recognize this as a moment of opportunity for prepared buyers and investors. With the right strategy and access to hard money financing, this market can be used to your advantage.

Home Prices Are Leveling Off

As of April 2025, the median home price in the United States is $438,357. That marks a 1.2 percent increase compared to the same time last year. While prices remain high, the growth rate has slowed considerably. In some areas, prices have declined, while others are still appreciating. This mixed performance reflects a market that is stabilizing rather than overheating.

Homes Are Taking Longer to Sell

The average home now spends 40 days on the market. One year ago, it was 35 days. In 2022, homes were selling in just 18 days. This slowdown indicates that buyers now have more time to make decisions and negotiate. It also means that motivated sellers are more likely to entertain reasonable offers.

Inventory Is Rising and Creating Opportunities

There are currently 1.88 million homes for sale across the country. That is a 12.5 percent increase from last spring and a 33 percent rise compared to 2022. This increase in available inventory is creating more choices for buyers. At 1st Private Capital, we see this trend as a signal that aggressive investors and prepared homebuyers can benefit from a less competitive market.

Home Sales Are Slowing Down

Sales of existing homes are down 4.7 percent from a year ago. In April 2021, 621,000 homes were sold. By April 2025, that number dropped to 431,000. That is a 31 percent decline. The combination of high mortgage rates and price fatigue is reducing buyer activity. For those who can act decisively, this creates space to find better deals.

Fewer Bidding Wars Mean More Negotiating Room

Only 30.3 percent of homes are selling above the list price. Two years ago, that number was 58 percent. This decline in price competition is one of the clearest indicators that buyers are regaining leverage. Sellers are now more open to price cuts, concessions, and flexible terms.

High Mortgage Rates Continue to Limit Affordability

The average 30-year fixed mortgage rate is currently 6.86 percent. At this level, homeownership is less accessible for many families. A household earning $75,000 per year can afford only 21 percent of homes currently listed. This affordability squeeze is sidelining many buyers, but it also creates space for strategic investors to move in.

How Hard Money From 1st Private Capital Gives You an Edge

In this shifting market, fast and flexible capital is more important than ever. Hard money loans from 1st Private Capital allow buyers and investors to move quickly and make competitive offers without relying on traditional mortgage financing.

Here is how hard money can help you:

• Speed. Close deals in days instead of weeks, which is essential when competing against other motivated buyers.

• Cash-like offers. Strengthen your position with offers that are treated as cash by sellers, improving your odds of acceptance.

• Fix and flip potential. Purchase undervalued or distressed properties, renovate, and resell for profit while others are still applying for bank financing.

• Bridge financing. Use equity in existing real estate to fund a new purchase before selling your current property.

• Fewer obstacles. Approval based on asset value, not just credit history or income documentation.

1st Private Capital works with both seasoned investors and first-time buyers looking to gain an edge in a competitive market.

Summer 2025 Outlook

Industry forecasts suggest that home prices may flatten or even decline slightly in some markets during the summer. Most analysts expect no major shifts in either direction. Inventory is expected to continue growing, and if mortgage rates drop even slightly, sales volume could rebound. However, there are no guarantees, and conditions may remain tight through the rest of the year.

A Market Correction, Not a Crash

Despite the headlines, this is not a housing crash. The most likely outcome is price movement in the range of minus 2 percent to plus 2 percent nationwide. For buyers using smart financing strategies, this environment offers a valuable opportunity to build long-term equity and income.

1st Private Capital's Recommendation to Buyers and Investors

Stay alert. Stay qualified. And when you find a good deal, do not hesitate. Trying to time the bottom of the market rarely works. If you are financially prepared and have the right capital partner, the best time to buy is when others are hesitant.

At 1st Private Capital, we are ready to help you act decisively. Whether you are expanding your rental portfolio, pursuing a flip, or securing a personal residence, our hard money loan solutions are built to match your goals.