Every year on the real estate calendar we look forward to our second season of selling which commences right after Labor Day. The first season usually starts gaining steam in March as new home listings come on the spring market. By April 15th when everyone who files taxes on time has a good grip on their financial situations, we typically hit the ground running with lots of buying activity. Often there are more buyers than sellers, creating multiple offers and overbids.
2025 has been different. We’ve seen good listings come on the market and instead of buyers fighting over them, we have been happy to attract one good buyer. The 2025 lack of demand can be attributed to a number of factors. Persistent elevated interest rates have hit buyers where it hurts the most. Interest rates along with high prices have been a one-two punch, keeping buyers waiting their corners instead of the fighting it out in the ring. When you throw in the economic, political and social uncertainty and uncertainty, many buyers have been knocked out of the ring entirely. At least for the time being.
I’m happy to report that things have been changing. I’ve been getting significantly more buyer activity on my listings, and recently put 670 Barberry Lane into escrow asking $1.395 million. Throughout June in this price level in 94903 it was brutal, with extreme buyer’s market conditions. As of 7/10/25, per BAREIS MLS (information is not guaranteed and has not been verified but it is deemed reliable) in the price category between $1.3 - $1.5 million there are currently 16 homes on the market. Currently 4 are in escrow, which makes for more neutral market conditions slightly in favor of buyers. Back in June when I was looking at price categories I’d see only 1 or 2 properties in escrow.
With market conditions improving for sellers, July and August which are typically slower months are looking favorable. They may be just a warm up for September and October. We Realtors call the period between Labor Day and Thanksgiving our second selling season. If you are thinking about selling this year, it’s time to launch a plan of action. Some people may be inclined to wait until spring 2026 to sell, but these are not normal times and fall 2024 actually had better selling conditions and higher prices than spring 2025. That’s highly unusual.
If you are going to sell this year, the time is now to get on the ball. Don't wait until fall. We may see higher inventory levels in September, so now is looking like it may be the best time. Interest rates aren’t terrible, averaging 6.75% on 30 year fixed products. On June 1 it was nearly 7%. Lots of people are using ARMs to get lower rates. The weekly average for a 5 year ARM as of 7/6/25 was 6.04%. Those are the kind of rates that can get this market moving again.
I have to admit, early this spring, March and early April, the market was better. Three of the four homes I sold in March and April were over the asking prices. In mid-April instead of getting a turbo boost the market sputtered. Things are picking up steam as we roll towards the middle of July, and I’m expecting good buying activity in the weeks and months ahead!