BiggerPockets Real Estate Podcast July 2025 Housing Market Update: A New "Correction" Begins
Jul 18, 2025
The housing market is experiencing a correction, with inventory climbing and sellers feeling frustrated. Buyers are looking for deals, but can they afford the lower prices? Home prices are falling, raising the question of how much more they could decline. Interestingly, certain regions are thriving while others face distress, including foreclosure issues. With rising mortgage applications, understanding these trends can help investors navigate the shifting landscape for potential buying opportunities.
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Inventory Up Because More Sellers List
- Inventory is increasing mainly due to more sellers listing homes, not lack of buyers.
- Buyer demand is surging, showing a market transition to a buyer's market with growing negotiations.
Home Price Growth Slowing Sharply
- Home prices are still appreciating but at a much slower rate than a year ago.
- Price growth is below inflation, meaning real gains are negative for unleveraged owners.
Correction, Not Crash, Expected
- The housing market correction is normal cyclical behavior after years of high growth.
- Sellers are choosing not to list in declining markets, which stabilizes supply and prices.