
🏡 June Market Update: Is the 2025 Housing Rebound on Hold?
As we step into June, hopes of a strong spring rebound in the housing market have dimmed. What started as a promising year—marked by falling inflation, improved inventory, and stabilizing mortgage rates—has taken a sharp turn amid fresh economic uncertainty.
If you're wondering whether it's a good time to buy or sell, you're not alone. Today’s market is full of mixed signals. But with the right strategy, there are still smart moves to make—and that’s where I can help.
⚠️ What Changed? A Promising Start, Interrupted
At the beginning of 2025, the market seemed poised for a comeback:
Inventory climbed to its highest level since early 2020.
Interest rates dipped, and buyers started poking their heads out.
Confidence returned, with sellers preparing to list and move up.
Then came the unexpected: sweeping new global trade tariffs introduced in April rattled markets, spiked borrowing costs, and sent buyers back to the sidelines.
As of May 29, mortgage rates surged to 6.89% for a 30-year fixed, the highest since early February. Buyer urgency evaporated, and the fragile momentum of a rebound stalled.
📉 Today’s Market Reality: Frozen, Not Falling
Despite more inventory and tempered buyer activity, prices are holding firm. Here’s why:
Nearly 60% of homeowners have sub-4% interest rates. They're not eager to give those up for a 6–7% replacement mortgage.
Sellers aren’t refusing to sell—they’re reluctant to budge on price.
Buyers are understandably cautious, with affordability squeezed by higher mortgage rates, property taxes, and insurance costs.
Even in high-demand areas like the Twin Cities suburbs, multiple offers have slowed. Homes are still selling, but many listings that would have drawn a dozen bids last year now attract only a couple—and they’re taking longer to sell.
🔍 What This Means for Sellers
If you're thinking of selling, here's the good news:
Inventory is up, but competition is still low relative to pre-pandemic years.
Serious buyers are still in the market—especially for well-prepared, well-priced homes.
Sticking to your dream price without preparation, however, can lead to longer days on market and reduced negotiating power later.
My advice:
✅ Price smart, not aspirational.
✅ Stage for success—small improvements go a long way.
✅ Understand your buyer's mindset. Many are nervous. Position your home as “move-in ready” and worth the premium.
🛍️ What This Means for Buyers
If you're buying in this market, patience is key—but so is being prepared. Yes, affordability is tight. But if you're waiting for a crash, you may be disappointed.
Price climbs are slowing in some areas, but widespread price drops aren’t happening.
Inventory is improving slightly, giving you more choices.
You can negotiate more than a year ago, even a little goes a long ways, especially on homes that have been sitting.
Sellers may be open to concessions (rate buydowns, repairs, closing costs), even if they won't cut the list price outright.
My advice:
✅ Get fully pre-approved before you shop.
✅ Focus on long-term value, not short-term uncertainty.
✅ Don’t overlook homes that have been sitting a few weeks—these can offer hidden opportunity.
👥 How I Help Clients Win in a Frozen Market
This is the kind of market where expert strategy makes all the difference.
✅ I help sellers price right from day one—avoiding costly price drops.
✅ I guide buyers through smart negotiations—even in competitive pockets.
✅ I track hyper-local data, not just national headlines, so we can move with confidence.
✅ I know how to tell your home’s story so it stands out from the crowd.
Whether you're planning to move now or six months from now, this is the time to start the conversation.
📲 Let’s Make a Game Plan
There’s no one-size-fits-all strategy in 2025. That’s why my job is to tailor a plan to your goals, timeline, and comfort level—whether that’s selling your current home, finding your next one, or both.
👉 Call or text me at 612-719-2718
👉 Learn more: www.nicholaskrueger.com
Oh, by the way®... if you know someone who’s unsure what to do in this market, I’d be honored to help them too.