Will the real estate market hit the summertime blues…or bounce back?

As we roll into the summer season, many homeowners and buyers alike are asking the same question: Will the real estate market slow down as it usually does this time of year… or are we gearing up for a late-season rebound?

Right now, we’re seeing a shift — one that’s been building gradually but feels like it came on fast. Sales activity is slowing down, interest rates are continuing to rise, and mortgage applications have dipped over the past few weeks. Buyers are taking a more cautious, wait-and-see approach, watching not only where interest rates are headed but also where home prices might land.

We are firmly in an interest rate–driven market. When rates go up, buyer demand tends to go down, and that’s exactly what we’re seeing now. Homes that may have sold in a matter of days earlier this year are now taking a little longer. In some cases, sellers are adjusting prices or offering incentives to attract serious buyers. There’s no panic — just a noticeable softening.This kind of quick market shift isn’t new. We’ve seen it before, especially since the pandemic. One moment, things are quiet. Next, homes are flying off the market. The real estate market has become increasingly sensitive to economic news, interest rate changes, and shifts in consumer confidence than ever before.

Historically, the summer months — especially July and August — bring a seasonal slowdown. People are traveling, kids are out of school, and real estate often takes a backseat to summer fun. But come September, activity usually picks up again. Whether that holds true this year will largely depend on interest rates.

If rates stabilize or drop, we could see more buyers re-enter the market. If they continue to rise, the current pause may last a little longer. Either way, we expect things to stay dynamic — and keeping a close eye on these trends will be important for both buyers and sellers.

Bottom line? Real estate is always moving, even when it slows. If you’re considering making a move this summer or fall, give me a call, let’s talk strategy. The more you understand the market, the better positioned you’ll be to make smart decisions. Happy Summer!