In a recent statement, Robert Reffkin, CEO of Compass Real Estate, emphasized that current housing market conditions present a favorable opportunity for prospective homebuyers. As of April 2025, housing inventory has reached its highest level in five years, with over 959,000 active listings, providing buyers with increased options and bargaining power. This surge in inventory marks a significant shift from the tight supply that characterized the market in previous years.
Reffkin pointed out that the increase in available homes has led to a more balanced market, with sellers now outnumbering buyers by approximately 34%. This dynamic allows buyers to negotiate more favorable terms, as sellers are more inclined to offer concessions to close deals. According to a recent Redfin report, 44.4% of home sales in the first quarter of 2025 included seller concessions, such as covering closing costs or funding repairs, up from 39.3% a year earlier.
In addition to increased inventory, home prices have slightly declined from their 2022 peaks. The median U.S. home sales price dropped 5% from late 2022 to early 2025, improving affordability for buyers. Reffkin noted that when adjusted for inflation, this decline represents a more substantial decrease in real terms, further enhancing purchasing power for buyers.
Mortgage rates have also seen a modest decrease, with the average 30-year fixed-rate loan currently at 6.89%, down from earlier highs in the year. While still higher than the historically low rates during the pandemic, this dip provides some relief for buyers concerned about borrowing costs. Reffkin anticipates that easing concerns over tariffs and improved consumer confidence will contribute to a rebound in pending home sales in the coming months.
Despite these positive developments, challenges remain in the housing market. Affordability continues to be a concern, as many buyers face monthly costs that surpass 35% of their income. Additionally, the “lock-in” effect, where homeowners with low mortgage rates are hesitant to sell, continues to constrain inventory levels. However, the current market conditions offer a more advantageous landscape for potential homebuyers compared to recent years.
Reffkin’s insights suggest that buyers who have been waiting on the sidelines may find this an opportune time to enter the market. With increased inventory, slightly lower prices, and more favorable mortgage rates, the housing market in 2025 presents conditions that are more conducive to homebuying than in the recent past.