Getting a solid fix on the real estate marketing during the summer can be increasingly hard. Prospective buyers and sellers await interest rate cuts, any inflationary impact of tariffs, and wonder what the inevitable flow-through to the housing market will be.
As one Zillow economist observed, Americans are playing a “wait-and-see” game in which buyers are taking their time and owners are sitting on the sidelines, reluctant to put their properties on the market.
Those sellers who are already in the market are having to work hard. Many buyers think there's always a better deal to be done, or a more perfect property around the corner. They do so at their own risk.
Property markets flip in a matter of weeks. One minute the momentum is in your favor, and the next, rates fall, prices rise, and bidding wars begin.
Put simply, now is a good time to buy. More homes are for sale now than in the past five years and, traditionally, fall is the slowest period for real estate. It's the perfect combo for a buyer. Industry research suggests there are 17% more properties for sale now than last year. We haven't seen this many homes on the market since November 2019.
“There's a lot of uncertainty out there, and some buyers are just waiting to see what happens,” Zillow Senior Economist Kara Ng said. “So, if you're able to buy, fall could be a sweet spot since you won't be competing against the pool of buyers waiting on the sidelines.”
Zillow offers this market forecast for the rest of 2025:
More choice – Zillow says new listings were up 4.5% in May, year-over-year. This reflects a generally tough selling period through late spring and early summer. The upside is that momentum is with the buyers.
Time equation – The benefit of a buyer's market isn't restricted to being able to negotiate a great price. You also have time on your side. It means you can make a considered decision without fearing you might lose the property to another party.
Budget stability – Mortgage costs look unlikely to rise as the Federal Reserve holds the cash rate at a 4.25%-4.50% guidance level. The favorable buying climate also means that buyers should be able to stay within their budget.
Price pressure – Zillow says that national values could fall by around 1.4% by the end of the year, but there is a mixed picture of winners and losers across the nation. It says that “overall, slower appreciation and flattening home values nationally are giving buyers a much-needed break from the price run-ups of the past four years.”
Discounts on offer – More than a quarter of residential property deals (26%) were finalized with a discount. Sellers are offering a myriad of options, like covering closing costs or buying down mortgage interest rates for up to three years. Zillow says the occurrence of discounting varied significantly in May, citing 13% in Syracuse and 38% in Denver.
Right time – Affordability challenges over the past three years created by higher interest rates and escalating home prices have resulted in pent-up demand, according to Zillow. A drop in interest rates will release this market pressure.
Future view: J.P. Morgan is among several companies predicting values to rise in the next 12 months. It has estimated an increase of 3%. By staying out of the market now, your future choices are likely to be more expensive.
