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!
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Affordability Crisis
- Affordability is a major concern in the housing market, worsened by increased home prices and mortgage rates.
- Certain markets like Florida face additional challenges due to rising insurance costs, impacting affordability.
Record-High Mortgage Payments
- Homebuyers face the highest mortgage payments ever recorded, a result of high home prices and mortgage rates.
- Potential improvement in affordability hinges on mortgage rates decreasing.
Inventory and Sellers
- Increased inventory is driven by more sellers entering the market, potentially due to delayed moves.
- This growth in sellers, if exceeding buyer demand, could lead to price corrections.