Spring Selling Season Falls Flat as High Expectations Weigh on US Housing Market

May 21, 2026 - 19:33

This was supposed to be the spring selling season that turned everything around. Instead, buyers and sellers are stuck in a frustrating standoff. Mortgage rates remain stubbornly high, hovering near 7%, while home prices refuse to budge from their elevated levels. The result is a market where few can afford to buy, and those who own homes are reluctant to list their properties and give up their low-rate mortgages.

The problem is rooted in expectations. Many would-be buyers hoped that 2024 would bring relief in the form of lower rates and more inventory. That hasn't happened. Sellers, meanwhile, expect to get top dollar for their homes, even as affordability crushes demand. This mismatch has led to the slowest spring market in years, with pending home sales dropping and days on market stretching longer.

So what can you do if you are trying to navigate this mess? First, forget about timing the market. Waiting for rates to drop to 5% or for prices to crash is a losing game. Instead, focus on what you can control. If you are a buyer, get pre-approved and be ready to move fast when a fairly priced home appears. Consider adjustable-rate mortgages or look at smaller homes in less competitive areas. If you are a seller, price your home realistically from day one. Overpricing in this market leads to price cuts and stigma. And if you are staying put, use this time to save for a bigger down payment or make improvements that add real value. The market will eventually shift, but waiting for perfection is a sure way to miss out.