Summer 2025 Housing: Hot & Cold

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News Flash

Hot and Cold: Summer 2025's Housing Market Shows a Split Personality

Experts predict that we're heading into a summer of regional contradictions.

Property analysts polled by Reuters predict a consistent 3.5% rise in national home prices annually through 2027. They're also forecasting slightly lower mortgage rates, averaging around 6.73% this year (down from the current 6.98%).

But zoom in, and you'll see a market that's anything but uniform.

The South and Midwest are poised for modest gains, while pricier metros out West continue feeling the squeeze. This geographic divide stems from local economic conditions, affordability challenges, and where buyers are actually choosing to relocate.

International buyers are making their presence known in key markets. During Q1 2025, foreign shoppers claimed a larger slice of U.S. housing demand, with Miami capturing 8.7% of this interest. New York and Los Angeles remain hot destinations for international capital as well.

Industry watchers expect transaction volume to surge after Independence Day, as buyers race to settle before the new school year begins.

The real question for real estate professionals: Are you positioned to capitalize on your specific regional dynamics?

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More You Should Know

• Builder Incentives Shift: Price Cuts: Rate buydown programs are losing effectiveness, compelling builders to offer outright price cuts and cash-back incentives as buyer behavior and market dynamics fundamentally change. [Source]

• Mortgage Demand Jumps on Rate Dip: As mortgage rates continue to decline, buyer activity and overall mortgage application volume have significantly increased, pointing to a potential acceleration in summer home-buying. [Source]

• Housing Inventory Surges: A significant 12% surge in active housing listings year-over-year is rebalancing the market, providing buyers with more options after years of limited supply. [Source]

• Southern Housing Sees Price Jumps: Despite increased borrowing costs, the Southern housing market is experiencing significant home value appreciation, particularly in cities like Austin, Charlotte, and Tampa, due to robust job growth and constrained inventory. [Source]

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