Summer 2025 Real Estate Market: What I'm Seeing Right Now

As we head into summer 2025, I'm experiencing something I haven't seen in years - a real estate market that's keeping both my buyers and sellers guessing. Let me share what I'm observing on the ground here in Morris County.

What I'm Seeing in the Market

The market definitely feels different from last year and has quieted down from recent months. I'm seeing more houses coming on the market, but buyer activity has become significantly lighter across different price points and neighborhoods.

What My Sellers Are Experiencing

• Much lighter showing activity - When I put a house on the market now, showings are very light compared to the flood of requests we saw in previous years

• More price reductions appearing across the board

• Not everything's going into bidding wars - though most of my well-priced listings still sell above list price

• Increased seller concern about the pace compared to what they expected

What Makes This Market Tricky for Me as an Agent

What makes this market particularly challenging is its unpredictability. I'm seeing:

Some of my listings still generating multiple offers and selling way over list price at numbers that would surprise anyone.

Other properties experiencing lower turnout, fewer offers, and selling at or just slightly above list price.

This case-by-case variability makes it much harder for me to predict which properties will "hit" and which won't - and that directly impacts how I advise my clients.

Why I'm Telling My Sellers Pricing Strategy is Everything

In previous years, strong demand meant my sellers could get away with imperfect pricing strategies. Even if we didn't maximize value, they might still get 10 offers and sell $50,000 above list price, masking any pricing mistakes.

Today's market is less forgiving, and here's what I'm explaining to my clients:

• Previous market: The difference between getting 10 offers versus 30 offers

• Current market: The difference between getting no offers versus 1-2 offers

This shift makes accurate pricing essential, but also more challenging because:

• Market conditions are potentially changing as we speak

• Homes selling today went under contract two months ago, so recent sales might not reflect today's market

• Consumer behavior has more variables than I've seen in years

The Interest Rate Factor

Mortgage rates remain a significant factor, though the conversation has evolved. Many buyers who were vocally "waiting for rates to come down" have either:

• Made their purchases already, or

• Stepped back from active searching while still hoping for rate improvements

Looking Ahead: The "Shadow Fed Chair" Speculation

An interesting development to watch is the potential impact of President Trump's influence on interest rates. While Fed Chair Jerome Powell has been steadfast in maintaining current rates, speculation surrounds the concept of a "shadow Fed chair" - where Trump might announce his next Fed chair choice early.

This could create a unique situation where mortgage rates might adjust based on the future Fed chair's expected policies rather than current Fed actions, potentially affecting rates sooner than traditional timelines would suggest.

What I'm Telling My Buyers About Strategy

For my buyers, determining whether you're in a bidding war situation has become much more complex. I'm seeing scenarios where:

• Multiple buyers appear ready to make offers

• Several decide not to proceed at the last minute

• One buyer ultimately submits an offer

My advice to buyers: If you sense you're in a bidding war, there's still a first-mover advantage to coming in strong from the beginning, but it's riskier now if other buyers don't materialize.

Getting Ready for Fall - My Recommendations

For my sellers considering a fall listing, I'm encouraging them to start preparing now:

• Beautiful weather for photography while everything looks lush

• Relaxed summer schedules for staging and preparation

• Less stress with more time to get everything perfect

• We can even do photography while you're on vacation so we're not bumping into each other

I've been working with several clients to get their homes photo-ready now so we can capture everything while conditions are optimal.

My Bottom Line Assessment

Summer 2025's real estate market requires more sophisticated analysis and strategy than I've used in recent years. While it's not the automatic seller's market we got used to, my well-priced and well-presented listings are still achieving strong results.

The key difference is that success now depends much more on getting the details right from the start - pricing, preparation, and timing all matter more than they have in years.

If you're thinking about buying or selling in this market, I'd love to share more specifics about what I'm seeing in your particular area or price range. Every situation is different right now, and local expertise makes all the difference.