As Mr. Miyagi said in the Karate Kid….“You must have balance” The real estate market this week is best described as, “transitioning toward balance”, but with meaningful regional differences and continued affordability pressure. Inventory is improving , giving buyers more options than they’ve had in recent years. However, demand hasn’t fully rebounded, largely because mortgage rates are still hovering in the mid-to-high 6% range, keeping monthly payments elevated and limiting purchasing power.
One of the biggest themes right now is cooling price growth. Nationally, home prices are flattening or rising modestly, with forecasts suggesting near-zero to low single-digit appreciation in 2026. At the same time, some markets, particularly in parts of Florida, California, and the Southwest, are seeing price declines, while others (especially in the Northeast and Midwest) remain highly competitive with homes still selling above asking in certain cases. This divergence is making local market knowledge more important than ever.
Another key trend this week is the continued shift in negotiating power. Buyers are gaining a bit more leverage as listings increase, and homes sit longer on the market. Well-priced homes, especially in desirable areas, are still attracting multiple offers. Overall, the market is becoming more “normal,” with fewer extreme conditions than the pandemic-era frenzy. This Spring Market looks to be the best time for prospective homeowners to find their dream home in years.