Homebuyers Have More Purchasing Power This Spring
- Feb 24
- 3 min read
Updated: Mar 27
As we thaw out from a long winter, spring arrives with blossoms, bluebirds — and a housing market that is shifting in favor of homebuyers. Just a year ago, affordability challenges and low inventory resulted in buyer hesitation and low confidence. This spring, homebuyers have more options, flexibility, and buying power. Explore what that means for you … and why it’s good news for sellers, too.
Market Factors Behind Buying Power
Several market shifts are contributing to increased purchasing power this spring.
Housing inventory
More inventory means more leverage. When buyers have options, sellers compete — and that translates to more room to negotiate on price, concessions, and repairs. In late 2025, active listings grew by 20.9% year over year, marking a multi-year streak of inventory growth that exceeded 1 million active listings for the first time since winter 2019.[1] As of February 2026, listings continued to grow, albeit at a slower pace of 7.9% year over year.[2] For buyers who've been waiting for the right home to emerge, that patience may finally be paying off.
Home prices
Home-price growth has cooled dramatically. In February, annual home prices rose just 0.4% nationally — the second-slowest growth rate since 2012.[3] And 40% of major markets are seeing price declines, particularly in the South and West.[3] Across the U.S., every major market has seen purchase affordability improve year over year, which is a welcome shift after several years of rising costs.[3]
Mortgage rates
Mortgage rates remain a key driver of purchasing power, and even modest differences can significantly affect monthly payments and overall affordability. After dropping to a four-year low in February, rates have seen some recent movement due to geopolitical events and market volatility. While rates can shift from day to day, they remain lower than they were a year ago, offering buyers more purchasing power than last spring. Instead of trying to time the market, buyers should work with a knowledgeable Loan Officer to cut through the noise and get a clear picture of their options.
Beyond The Price Tag: What Greater Buying Power Really Means
With more listings available, buyers can focus on finding homes that truly fit their needs, potentially shortening their search. Lifestyle priorities such as a shorter commute, a better school district, or that extra bedroom may now be within reach.
Perhaps the best advantage is stronger negotiating leverage. From home price to closing costs and repairs, buyers have more room to negotiate. That flexibility can make a significant difference when making an offer.
Why Sellers Can Also Benefit
Do advantages for buyers spell disadvantages for sellers? Not necessarily. While homes are no longer selling at pandemic-era premium prices, sellers can still get a good deal by pricing competitively. And while buyers now have more options, improved affordability means more of them are financially ready to make offers when they find the right home — giving sellers a healthier pool of qualified, motivated buyers than last spring.
The Math Behind Purchasing Power
Here’s a simplified example based on a purchasing power analysis, assuming a fixed monthly budget and 20% down payment.
*The sample rates shown are neither an advertisement, an estimate, nor an offer to lend. Rates are for illustrative purposes only. The annual percentage rate (APR) is the cost of credit over the term of the loan expressed as an annual rate. The APR shown assumes a 1% origination fee, $1,000 in other fees, and pre-paid (per diem) interest calculated at the 30-year fixed mortgage rate for 15 days. Monthly payment reflects principal and interest only and does not include applicable taxes and insurance. Rates, terms, and eligibility vary by borrower and are subject to change. This is not a commitment to lend.
With the same monthly budget, easing rates can afford buyers roughly $32,300 more in home price. That additional purchasing power could translate to a better location, more space, or upgraded amenities — options that may not have been possible just a year ago.
Spring Into Action
A clearer picture of the current market gives buyers the confidence to move forward. Consider these next steps:
Get pre-qualified to understand your true buying power
Explore loan options and programs
Partner with a knowledgeable local agent
Create a must-haves vs. nice-to-haves list
Monitor the market — conditions can shift quickly!
With more purchasing power and more choices this spring, buyers can let go of hesitation and turn today’s market shift into a real opportunity.
Sources:
[1] Realtor.com, “August 2025 Monthly Housing Market Trends Report,” September 8, 2025
[2] Realtor.com, “February 2026 Monthly Housing Market Trends Report,” March 5, 2026.
[3] ICE Mortgage Monitor, March 2026.