Despite a slow start for home sales in 2025, some economists and real estate professionals see promise for the busy spring homebuying season.

The National Association of Realtors’ Pending Home Sales Index fell 4.6% in January to hit an all-time low. Home affordability issues persist as homeownership costs continue to outpace income levels and mortgage rates remain elevated. However, that could change during the spring, which is typically one of the best times to sell a home, according to Realtor.com.

“I see the spring market as an opportunity to start new momentum due to the number of buyers waiting out the markets,” said Phil Crescenzo Jr., Nation One Mortgage Corporation southeast division vice president. 

Mortgage Rates, Inventory Moving in the Right Direction

Falling mortgage rates are one reason for optimism, economists said. The average interest rate on a 30-year fixed mortgage fell to 6.63% this week, according to Freddie Mac. That’s the lowest since mid-December and the seventh consecutive decline.

Other factors are pointing toward a potential pickup in home sales. Notably, inventory is higher, giving browsing house shoppers more options to consider this year.  

“This stability continues to bode well for potential buyers and sellers as we approach the spring homebuying season,” said Freddie Mac Chief Economist Sam Khater.

Demographic Trends Could Drive Season

Going into the 2025 spring home sales season, some demographic trends could also help spur the housing market. Recent housing data shows that homebuyers are becoming older, including first-time owners, who made up a record-low share of buyers in 2024.  

“Millennials have reached peak age for marriage and children, both of which are catalysts for homebuying. In addition, more and more baby boomers retire every day. Retirement leads to a change in lifestage and lifestyle, which also corresponds to changes in where and how people live,” said Ali Wolf, chief economist at real estate data firm Zonda.