The Top Real Estate Predictions for Summer 2025

The heat is on! But does that hold true for the summer housing market? With economic uncertainty and high home prices/interest rates still in the mix, this summer’s market may not get as hot as we want. Here’s some insight into the top real estate predictions for summer 2025.

The Market is “Calming”

Calm. Is that a word to describe the housing market? Normally, no. However, over the last year there hasn’t been dramatic changes to the housing industry. Rates have stayed between 6-7%, home prices have risen or fallen (depending on the region) by minimal amounts, and the demand for homes has remained relatively consistent. With that being said, right now the market could be considered “calm.” But we don’t really like calm. We want “on fire,” “hot,” “growing like crazy,” “flourishing”, “perfect conditions,” etc.

One can dream…but with those wishes in mind we’ve got to look ahead and be ready for the next half of 2025. Experts are predicting much of the same pattern in the market, particularly over the summer months.

Local Markets Matter

One area we are seeing a shift in the housing industry is within local markets. It’s almost as if each local market is a country in itself. There are different impacts on demand, availability and costs of homes in local markets versus national. For example, a smaller local housing market may be booming while merely two hours away the larger market is at a standstill. This is why it’s so important to understand your local market and advise clients appropriately so they can make a move when the time is right.

Summer Interest Rates

All signs are pointing to interest rates remaining between 6-7% for the summer season. We may see a slight dip, but nothing significant. It’s important to help clients understand the days of 2% interest rates are long behind us, and this is the new norm. By working with lenders and real estate agents, prospective buyers can create a plan to manage the costs associates with the new rates and in most cases still get the home of their dreams.

New Home Sales are Stalling

Builders usually see their biggest growth sales in the springtime, and in 2025 this just wasn’t the case. Because of current economic uncertainties, demand for new homes has decreased slightly. This has led to builders offering large incentives to move their inventory. To learn more about this, click here.

Home Price Predictions

The cost of homes has a huge impact on the housing market. When the cost goes up, alongside higher interest rates, you can see a stall in home sales. It’s all about the supply and demand balance. What is on the horizon for the summer months when it comes to home prices? It looks as if prices will remain consistent and only see a rise or drop by small amounts, either way. This has to do with the amount of inventory in an area, current interest rates and any changes in real estate taxes or laws.

Overall, there are not any massive changes predicted for the summer months in the real estate industry. However, we know things can shift without notice so it’s important to stay up to date on the latest real estate news and information. Velocity Title will continue to monitor the housing market and share any updates as they arise.

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