A Hot, Hot Summer!

🔥 The Hottest Summer in Real Estate — And It's Not About the Weather

If you thought the summer of 2022 was a scorcher in the housing market, buckle up—because 2025 is shaping up to be even hotter. But I’m not talking about temperatures in the air—I'm talking about the housing market.

Looking Back: What Made 2022 So Hot?

The pandemic years (2020–2021) put the world in a kind of forced hibernation. When restrictions lifted and life cautiously resumed, pent-up demand exploded. Homebuyers rushed into the market, creating the frenzy of 2022, one of the most competitive housing years on record. Redfin's 2022 Market Report shows just how intense it got, with bidding wars, limited inventory, and double-digit price growth in many regions.

What Happened in 2023 and 2024?

Just when the momentum seemed unstoppable, inflation surged and interest rates climbed, forcing many buyers to the sidelines. The Fed’s aggressive rate hikes in response to record inflation shocked the market, pushing 30-year mortgage rates above 7% in 2023. Combine that with an emotionally charged U.S. election cycle, and it was a recipe for buyer hesitation and market cool-down.

2025: The Rebound Year

We began 2025 under a cloud of uncertainty—bearish news cycles, stock market dips, and economic forecasts full of doubt. But markets have a way of surprising us.

• The S&P 500 and DOW JONES have recently shown signs of sharp recovery.

• With no major elections for another three years, buyers seem more ready to make big decisions again.

Why This Summer Is Going to Be Red-Hot

Buyers are adjusting to the “new normal” of higher interest rates and elevated home prices. After sitting on the sidelines, many are done waiting. They've accepted that we’re not going back to 3% mortgage rates anytime soon—and that real estate remains one of the most reliable investments long-term.

Even with affordability challenges, low inventory continues to drive competition. According to Realtor.com’s 2025 Outlook, buyer activity is expected to rise significantly this summer, especially among millennials and Gen Z entering the market for the first time.

Final Thoughts

We’re stepping into a resilient, adaptive real estate market. Buyers are informed, motivated, and ready to strike in an environment that, while still challenging, is a lot more stable than the uncertainty of the last few years.

So no, I’m not talking about global warming. I’m talking about the firestorm of activity that’s about to hit the real estate market. Summer 2025 is here, and it’s going to be hot.