May 2025 Housing Market Update: Price Cuts Arrive, Market “Softening” Continues

18 snips

May 16, 2025

The housing market is undergoing a significant shift as sellers face price cuts in key markets like Texas and California. With rising inventory, the balance is tipping towards buyers. A new proposal from the Trump administration could drastically impact Section 8 funding, affecting tenants and landlords alike. The sustainability of flat rents raises questions for investors. Plus, thoughtful insights on mortgage rates for the remainder of 2025 offer both caution and opportunity for those navigating this evolving landscape.

Ask episode

AI Snips

Chapters

Transcript

Episode notes

INSIGHT

Housing Market Shift To Buyer-Friendly

The housing market is shifting from a strong seller's market to a more balanced market with softer prices.
Sellers have unrealistic price expectations causing a growing gap with buyer willingness, leading to more price cuts.

INSIGHT

Inventory Increasing Signals Softening

Active listings are up 14% year over year, indicating increasing inventory but still below pre-pandemic levels.
The market is moving towards more balance with longer days on market, signaling softening demand.

INSIGHT

Home Prices Lag Inflation

Nominal home price appreciation is slowing, currently about 2% year over year.
Home prices are now rising slower than inflation, which reduces real value growth.

Get the Snipd Podcast app to discover more snips from this episode

Get the app

The housing market is going through another significant shift. Sellers have lost even more control as price cuts become common in some top markets. Rents are flat, but will they stay this way? The Trump administration presents a groundbreaking proposal that could greatly affect many real estate investors. This is May 2025’s housing market update, where we’re filling you in on all the biggest stories affecting real estate!

The market “softening” continues. Inventory is rising, and sellers are realizing this isn’t 2022 anymore. Price cuts have become common in Texas, Florida, and California. But other markets are still seeing price jumps, so have the southern states become the new buyer’s markets? Investing opportunities could be here for the right buyers, and Dave has already made a move, locking up his latest investment to capitalize on what’s to come.

But what about mortgage rates? Do we have any hope that we’ll get below 6% this year? Dave shares his updated mortgage rate “range” for 2025. Have Section 8 renters? You’ll want to hear the end of today’s episode as a new proposal from the Trump administration could slash Section 8 funding, putting tenants and landlords in a tricky position. All that, and more, in today’s episode!

In This Episode We Cover

The housing market “shift” pushing us into a bigger buyer’s market

The end of Section 8? A new proposal from D.C. could cause major cuts

Markets with the most price cuts and areas where prices are rising instead

Mortgage rate forecast and the range we could hover around for the rest of the year

Investing opportunities with “juicier” returns as sellers lose control

Rent price updates and which properties will get hit hardest as vacancy rises

And So Much More!

Check out more resources from this show on ⁠⁠⁠⁠⁠⁠⁠⁠⁠BiggerPockets.com⁠⁠⁠⁠⁠⁠⁠⁠⁠ and ⁠⁠⁠⁠⁠⁠⁠⁠⁠https://www.biggerpockets.com/blog/real-estate-1122

Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email ⁠⁠⁠⁠⁠⁠⁠⁠⁠advertise@biggerpockets.com⁠⁠⁠⁠⁠⁠⁠⁠⁠.

Learn more about your ad choices. Visit megaphone.fm/adchoices