The United States housing market is showing promising signs of stabilization as spring 2025 progresses, with real estate agents across the country reporting increased confidence and renewed optimism. The National Association of Realtors (NAR) released its latest Realtors Confidence Index (RCI) in May 2025, highlighting that 63% of real estate agents surveyed expressed positive sentiments about the current housing market—the highest level since early 2023.
Market Conditions and Mortgage Rate Stabilization
One of the key factors contributing to rising realtor confidence is the stabilization of mortgage interest rates. Over the last year, the housing market experienced volatility due to fluctuating mortgage rates, which soared above 7% during much of 2024 as the Federal Reserve aggressively raised interest rates to combat inflation. However, with the Federal Reserve adopting a more cautious approach in early 2025, mortgage rates have moderated to an average of approximately 6.2% for a 30-year fixed mortgage as of the first quarter of 2025.
This easing has had a significant impact on buyers’ ability and willingness to enter the market. Homebuyers who previously delayed purchases due to unaffordable borrowing costs are now returning, providing a much-needed boost in demand that has helped to balance inventory levels in many markets.
“Buyers feel more confident that they can afford a home again, and sellers are becoming more realistic with pricing,” said NAR President Jamie Thompson. “This creates a healthier environment for transactions to occur and supports sustainable market growth.”
Inventory and Regional Variations
While the national market is trending toward balance, inventory levels vary significantly by region. Coastal metropolitan areas such as San Francisco, New York, and Boston continue to experience tight supply due to limited new construction and persistent demand. Conversely, many suburban and smaller metropolitan regions, including cities in the Midwest and South, have seen a modest increase in available homes, contributing to a more balanced market.
This shift reflects changing buyer preferences in the wake of the COVID-19 pandemic, with many individuals and families seeking larger homes and more affordable options outside of dense urban centers. The growth of remote and hybrid work arrangements has facilitated this trend, allowing buyers greater flexibility in where they choose to live.
Technology Adoption Enhancing the Realtor Experience
Agents also credit advancements in technology for improving client engagement and operational efficiency. Digital tools such as virtual home tours, 3D walkthroughs, and AI-powered property recommendation engines have become essential components of the real estate process.
According to NAR’s 2025 Technology Use Survey, over 80% of agents reported that incorporating digital tools increased buyer interest and accelerated decision-making. Platforms that enable real-time communication, document signing, and transaction tracking have reduced friction and increased transparency between buyers, sellers, and agents.
“This technology helps agents provide a better experience and builds trust with clients,” Thompson added. “It also allows realtors to adapt quickly to changing market conditions and meet the expectations of tech-savvy buyers.”
Challenges Remain
Despite positive trends, challenges persist. Affordability remains a concern in high-cost markets, where wage growth has not kept pace with home price appreciation. Additionally, rising construction costs and supply chain constraints continue to slow the development of new housing stock.
Experts emphasize that sustaining the current momentum requires targeted policy support, increased investment in affordable housing, and continued innovation in real estate services.
As the 2025 spring market progresses, the growing confidence among agents may signal a return to a more normalized, balanced housing market, fostering opportunities for both buyers and sellers.
