arhome realty blog

summer 2025 real estate market outlook

As we head into Summer 2025, the real estate market continues to evolve. After a period of rapid appreciation and limited inventory, we're seeing signs of a more balanced, yet still competitive, market. For both buyers and sellers, understanding these evolving trends is crucial to making informed and successful decisions.

1. mortgage rates: holding steady

While we won't be returning to the historically low rates seen during the pandemic, the dramatic swings of the past few years seem to be settling. Experts predict the 30-year fixed-rate mortgage will largely hover in the mid-6% range.

2. homes for sale: a slow climb for more choices

Good news for buyers in Illinois: the number of homes for sale is slowly increasing. After a long period of very few homes on the market, we're seeing more options pop up. Even though the market still remains competitive, an increase in inventory may give buyers a little more flexibility. While the new tariffs will likely impact homebuilding and inventory, there is still uncertainty on what to expect.

3. home prices: still rising, but more slowly

Home prices continue to rise, but the pace of growth is slower compared to previous years of record numbers. This moderation is good news for buyers who have been grappling with affordability challenges. For sellers, this means your equity is predicted to remain stable. As more inventory of homes enters the market, home prices should rise at a slower pace than before.

4. summer market: what it means for buyer and sellers

Buyers will likely find more options and potentially more negotiating power due to increased inventory and moderating price growth. Sellers, while still at an advantage, should focus on competitive pricing and excellent presentation to attract strong offers. Partnering with a knowledgeable real estate professional is crucial for navigating these dynamics successfully.

While predicting the exact trajectory of the housing market is a challenging task, industry experts offer valuable insights that help us anticipate potential trends and changes. As we look ahead, stabilizing mortgage rates, a slower rise in home prices, and a growing inventory of homes for sale are some key factors to consider. It's essential for prospective buyers and sellers to stay informed, work with knowledgeable professionals, and adapt to market conditions in order to navigate the ever-changing landscape of the housing market successfully.

talk to an arhome agent

Contact us for a free market analysis.

Sources: Illinois REALTORS®, National Association of REALTORS®, Newsweek, Fannie Mae, Bankrate