HousingWire Daily Mike Simonsen on how government policy is influencing housing inventory
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Apr 24, 2025 Mike Simonsen, President of Altos Research and expert in real estate data, joins to discuss how government policies and economic factors, like mortgage rates, are shaping housing inventory and listings. He highlights the positive uptick in pending home sales as rates decline. The conversation dives into regional inventory differences, the effect of Canadian snowbirds on property investments, and how regulations impact local markets like Miami. Simonsen also emphasizes the bond market's influence on mortgage rates amidst shifting economic conditions.
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Mortgage Rates Impact Sales
- Home sales recently surpassed last year's levels due to lower typical mortgage payments now.
- This change is driven by mortgage rates being lower compared to last year's peak over 7%.
Price Reductions React Fast
- Price reductions in housing respond very quickly to mortgage rate changes, often within about eight days.
- Sellers adjust prices fast when demand drops after rate spikes, making this metric a sensitive indicator.
Sunbelt Inventory Rising
- Inventory is up over 30% from last year, mainly in Sunbelt states like Texas, Florida, Arizona, and Georgia.
- Northern states still have low inventory, but it is slowly easing with more sellers entering the market.