Top of Mind Weak demand is forcing more home sellers to reduce their asking price (2/3/25 Market Update)
Feb 4, 2025
The podcast dives into the latest U.S. housing market trends, highlighting an intriguing rise in price reductions as demand wavers. It explores how sellers are responding to a drop in buyer interest and examines current median home prices. Future implications of government policies on mortgage rates and the economy are also discussed. Additionally, the show offers insights into early 2025 trends, focusing on inventory levels and potential seasonal buying patterns that could influence market dynamics.
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Price Reductions as Leading Indicator
- The percentage of homes with price reductions is a leading indicator for future sales prices.
- This metric shows current weakness in future transactions.
Unusual Price Reduction Uptick
- Price reductions ticked up this week, which is unusual for January and the first uptick in over 10 years.
- This suggests more sellers are reducing prices due to weak buyer demand.
Ironic Housing Scenario
- A potential scenario for higher home prices involves new administration policies harming the economy.
- This could lead to lower bond yields and mortgage rates, ironically boosting housing demand.