Housing Demand Grows as 10 Major Cities See Price Drops

9 snips

Nov 6, 2025

Surprisingly, housing demand is up as mortgage rates drop from 7.2% to 6.2%, encouraging millennials to buy. Ten major cities are experiencing significant price drops, including San Diego and Miami. Discussions also highlight the impact of Amazon's layoffs on local markets and housing demand. Experts warn against assuming a crash just because of high prices, emphasizing current fixed-rate dynamics. The road to 5% mortgage rates involves complicated financial moves, and adjusting investment strategies may be necessary as job markets shift.

Ask episode

AI Snips

Chapters

Transcript

Episode notes

INSIGHT

Inventory Growth Is Normalizing

Housing inventory growth has slowed from 33% to 16% year-over-year, signaling improving balance in supply and demand.
Mortgage rate declines are pulling edge buyers back into the market, especially millennials ready to buy.

INSIGHT

Rates Drop Spurs Demand, Prices Lag

Mortgage rates falling from ~7.2% to ~6.2% materially improves affordability and purchase applications year-over-year.
Sales prices lag because sellers are withholding inventory, creating a correction rather than a crash.

INSIGHT

QE Is The Likely Path To 5% Mortgages

A route to 5% mortgages likely requires the Fed to buy mortgage-backed securities — effectively another round of quantitative easing.
That tool lowers rates short-term but risks inflation and future higher long-term rates.

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

Get the app