T
he housing market has been on a wild ride for years, but it's finally starting to slow down. As prices come back to earth, here are the key things to know about what's happening in the market.

    Home price gains will significantly slow down. Prices surged during the pandemic, rising around 50% over five years as mortgage rates hit rock bottom and people reevaluated where they wanted to live. However, this has made it tough for buyers, especially first-timers, to get into the market. Now, prices are expected to rise only 1.3% in 2025, according to the Mortgage Bankers Association.

    The "mortgage rate lock-in" effect is starting to wear off. For years, homeowners with low mortgage rates were hesitant to sell and take on higher borrowing costs. But now, more people seem willing to list their homes for sale. Redfin agent David Palmer notes that some buyers are no longer deterred by high interest rates, while Selma Hepp, chief economist at Cotality, says the shift is happening faster than expected.

    As a result, there are more options for buyers. Realtor.com data show that active listings were up 30% in April compared to last year and nearly as high as 2019 levels. This could be a welcome relief for buyers after years of frenzied sellers' markets. "I think this can be a good opportunity for people looking to buy," Palmer said. "First-timers can actually negotiate something."

    However, it's too soon to call this a buyer's market. Experts caution that the national housing market is becoming increasingly local, with some areas experiencing strong demand while others weaken. Still, Realtor.com data show that more sellers are making price cuts, suggesting that they're adjusting their expectations in response to affordability challenges and weaker buyer demand.