Yet, buyers still grapple with steep price tags and volatile mortgage rates. Despite this cooling trend, prospective homeowners need to decide whether they should leap into the market or sit tight, especially as the Federal Reserve's inflation fight continues.

Throughout 2024, mortgage rates soared past 8%, but they've since receded to an average of around 6.76%, per recent Bankrate data. Meanwhile, the National Association of Realtors (NAR) reports that February's median home price stood at $398,100 — still historically high. While higher rates and record-breaking prices might deter many buyers, securing a loan now means you start building equity sooner, and you can refinance later if rates drop.

The NAR data shows that homes spent an average of 42 days on the market in February (up from 38 last year), giving buyers more breathing room. Active listings have also increased by 17% year-over-year, improving choice and negotiation power. That said, real estate remains hyper-local, which means that supply and demand can swing dramatically even within a single metro area, so it's crucial to partner with an agent familiar with the nuances of your chosen neighborhood.

Talk of an impending recession clouds the future. A downturn could undermine job security and dampen demand, which in turn might push prices lower. On the flip side, a recession can create opportunities for well-prepared buyers unburdened by layoffs or shaky finances. If you opt to wait, it would be a good idea to focus on boosting your credit score and padding your savings since a stronger financial position means better loan terms when the right time finally arrives.