On The Market Weaker Home Prices Ahead | Zillow Downgrades 2025 Home Price Forecast
22 snips
Feb 27, 2025 Orphe Divounguy, a Senior Economist at Zillow, shares critical insights into the housing market's shifting landscape. He discusses Zillow's downgraded home price forecast for 2025, attributing it to rising inventory and suppressed buyer demand due to high mortgage rates. The conversation delves into the impacts of multifamily construction on rent prices and explores whether the market has reached a supply-demand equilibrium. Divounguy also highlights potential factors that could reignite buyer demand in this stagnant environment.
AI Snips
Chapters
Transcript
Episode notes
2025 Housing Market Predictions
- Zillow predicts weaker home value growth and slight increases in existing home sales for 2025.
- This suggests a cooling or leveling out of the housing market.
Home Sales Volume Decline
- Home sales volume is down sharply from pre-pandemic levels, signifying a substantial market shift.
- Modest improvements are projected, but a full recovery is uncertain.
Positive Market Indicators
- Declining mortgage rates and increased housing inventory are positive indicators for the housing market.
- These factors, combined with typical seasonal upticks, suggest a potential rebound in home sales.