After a few years of uncertainty in the housing market, signs are beginning to point to a big shift: a potential surge of homebuyers may be just around the corner. If you're thinking about buying, selling, or investing in real estate, now is the time to start paying attention.

Home Sales Are Down, But Demand Is Building

According to recent data, existing-home sales in the U.S. dropped nearly 2% in March 2025 compared to the previous month. While that might sound like a red flag, it’s actually signaling something deeper—buyers are waiting in the wings.

Many would-be buyers are pressing pause, holding out for interest rates to dip. Lawrence Yun, Chief Economist at the National Association of REALTORS®, explains that pent-up demand is growing. And once mortgage rates show consistent downward movement, we could see a rush of buyers re-entering the market.

Why Interest Rates Are the Key

It’s no secret: interest rates shape affordability. When rates go up, buying power goes down. But here's the good news—there are early signs that rates could start softening in the months ahead. And when that happens, expect to see more buyers actively house hunting again.

This is especially important for first-time buyers and those in the starter home segment. These buyers are often the most sensitive to interest rate fluctuations and have been sitting on the sidelines the longest.

Inventory Challenges Could Heat Up the Market Again

With housing inventory still relatively tight in many markets, a sudden influx of buyers could mean a return to competitive bidding and faster home sales. If you're a seller waiting for the "right time"—this could be it.

On the other hand, buyers should be preparing now. That means getting pre-approved, understanding your budget, and partnering with a trusted real estate professional who can help you navigate a potentially fast-moving market.

What This Means for Tennessee Buyers & Sellers

Here in Tennessee—especially in hot spots like Knoxville, Nashville, and Chattanooga—demand remains strong, and housing supply remains limited. When interest rates fall even slightly, local agents are expecting a renewed surge of interest. If you’re on the fence, this may be your window of opportunity.

Whether you’re planning to buy or sell in the coming months, staying ahead of market shifts is key. If you'd like to talk strategy or need help connecting with a lender, reach out to the Jeff LaRue Team today. 

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Disclaimer: This information is for general knowledge and informational purposes only and does not constitute financial, tax, or legal advice. We are not lawyers, financial advisors, accountants, loan officers, or mortgage brokers. Please consult with a qualified professional to understand your specific needs.