The luxury market’s hot streak hits a seasonal speed bump—now what? There’s been a lot of discussion on the return of the buyers’ market. In many ways, that’s apparent—homes are sitting longer, price reductions are across the board, and negotiation is back on the table. Inventory outpaces active demand. But this is historically normal, the summer months have frequently been buyers market. So it is seasonal?
Every July, the same thing happens: showings dip, inboxes quiet, and buyers hit pause to squeeze in one more trip to the lake. It’s the unofficial halftime of the real estate year. But once the sunscreen fades and school prep begins, savvy agents know—September to December can bring unexpected moves in the market.
This year? The shifts may be more dramatic than usual.
Take a look at recent trends:
- In June, Iowa City saw luxury homes over $1M spending 27% longer on the market than in May.
- Price reductions ticked up as buyers grew more selective—and interest rates stayed stuck in the “uncomfortable-but-not-unaffordable” zone.
- Showings per listing dropped slightly, even as inventory remained relatively low (yet larger than last year).
It’s not panic. It’s pricing fatigue. High-end buyers are still out there, but they’re pickier, more strategic, and often waiting for just the right fit—or a hint of negotiation room.
Local Update: Iowa City Area Snapshot
- Inventory: Still historically tight, but new construction is filling some gaps, especially in Coralville and Tiffin.
- Buyer Behavior: Move-up buyers are slowing, while relocation buyers—especially healthcare, higher ed, and tech professionals—remain steady.
- Shift in Speed: Homes under $600K continue to move quickly; the $800K–$1.2M range is where DOM (days on market) are creeping up.
This is the moment where sellers need sharper strategy, and buyers get a window of leverage—if only briefly. The stats behave like a buyer's market and that's easy to unpack. Though I concede to the buyers’ market, I believe it’ll be short-lived as a historically seasonal trend. Rates will be the driving factor.
“Summer slowdown” doesn’t mean “game over.” It means reset, reposition, and reengage.
If the Fed hints at easing late this year or early 2026, buyer sentiment could shift fast. But if inflation ticks back up? Expect caution. As always, the agents (and clients) who adjust quickest are the ones who win this part of the season. And while some listings languish, the right pricing, staging, and marketing strategy can make your property the exception to the rule.
