Real Wealth Show: Real Estate Investing Podcast Housing Market Update: Rates, Inventory & Home Prices with Mike Simonsen
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May 8, 2025 Mike Simonsen, founder and president of Altos Research, dives into the evolving 2025 housing market. He shares real-time insights on current mortgage rates and their significant impact on housing inventory, especially contrasting regions like the Northeast and the Sunbelt. Simonsen discusses the fluctuation in home prices and buyer opportunities, revealing intriguing trends between condos and single-family homes. His analysis provides valuable information for anyone looking to navigate today's real estate landscape effectively.
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Higher Rates Boost Inventory
- Mortgage rates have stayed higher for longer than expected, nearing 7% as of early May 2025.
- Higher rates increase inventory by making holding real estate more expensive, leading to more homes on the market than in the past six years.
Regional Inventory Differences
- Inventory varies regionally; the Sunbelt sees dramatic increases while the Northeast and some Midwest areas remain restricted.
- Migration from northern states to the South has slowed due to rising moving costs, keeping inventory low in places like Connecticut.
Home Prices May Flatten or Fall
- Pending home sales show prices about 1% below last year, suggesting potential flat or negative home price changes in 2025.
- There is no data signal for a broad home price crash, but some markets may see declines around 10%.
