Interest rates, inventory levels, home showings, and under-contract properties are the four primary indicators we track to gauge how this spring’s real estate market might unfold. These metrics help us determine whether buyers will face fierce competition or if sellers should prepare for extended marketing times, price reductions, and a more buyer-centric environment.

Our year end and early 2025 analysis had us anticipating that pent-up seller demand would bring more homes to market this year. However, we also projected even stronger pent-up buyer demand, driving a more seller-friendly climate, increased market activity, and steady home value appreciation. Although it’s still early, recent data suggests we were on point:

• Interest Rates: For the last three weeks, rates have been modestly but steadily declining.
• Inventory: While inventory often dips at the start of the year, we’ve seen a gradual increase since January 1, ending last week at 7,179 homes for sale.

• Home Showings: Year-to-date showing activity is only slightly surpassed by the historically busy years of 2021 and 2022.

• Under-Contract Properties: So far this year, under-contract figures rank as the fourth highest in market history with 908 properties under contract last week.

Anecdotally, bidding wars are resurfacing in certain market segments. However, real estate remains hyperlocal: one neighborhood may be experiencing rapid price gains while another is stagnant or even depreciating. To make well-informed decisions on go to market or offer strategies, it’s vital to rely on detailed, neighborhood-specific analysis rather than broad market assumptions.

If the four key indicators continue trending upward and buyers remain aggressive, we expect home values to rise this spring, days on market to decrease, and buyers to face more competition than they have in nearly three years. Still, many sellers may feel the market is slower than they’d like. While showings are up and buyers seem more assertive, the average seller is seeing just 3.3 showings per week—much lower than the frenzy of 2021 and 2022, when inventory was below 2,000 homes and the average property saw 14–16 showings per week.

Although the signs are largely positive for sellers, it’s important to prepare thoroughly: get your home market-ready, be prepared for fewer showings, and anticipate a longer time on market. You may be pleasantly surprised as conditions continue to shift, but keeping expectations realistic will help avoid disappointment.