HousingWire Daily
Mike Simonsen on the housing market trends to watch this year
Jan 9, 2025
Mike Simonsen, President of Altos Research, dives into pressing housing market trends with Editor in Chief Sarah Wheeler. They discuss the escalating affordability crisis as home prices soar while incomes stagnate. Simonsen highlights the challenges posed by mortgage rates surpassing 7% and their impact on buyer demand. Additionally, they explore the current inventory levels in the market and how they influence pricing dynamics, along with predictions for mortgage rates in 2025. A captivating conversation on navigating today's housing landscape!
26:13
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Quick takeaways
- The housing market is grappling with an affordability crisis due to rising home prices and mortgage rates, impacting buyers significantly.
- An increase in new listings expected in 2025 could enhance inventory levels, potentially stabilizing home prices amidst changing seller behaviors.
Deep dives
Affordability Crisis in the Housing Market
The housing market is facing a significant affordability crisis, exacerbated by rising home prices and increasing mortgage rates. Over the last 15 years, home prices have surged compared to income, particularly during the pandemic, leading to a situation where even with decreased demand, prices have not corrected significantly. Many markets, especially in regions like Florida and Texas, are experiencing steep insurance costs that further complicate affordability. As of the beginning of 2025, there are few signs of improvement in affordability, marking it as a prevailing concern for the housing market throughout the year.
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