BiggerPockets Real Estate Podcast

Were We Wrong About the Housing Market? (+ 2025 Predictions)

Dec 27, 2024

Dive into the predictions for the housing market in 2025! The discussion uncovers past forecast blunders and applauds successful calls. Discover where home prices, interest rates, and the best investment markets are headed. Reflect on Zillow's performance while examining buyer trends favoring renovated homes. Amid inflation concerns, there's an unexpected optimism about lower mortgage rates. This lively debate also touches on the complexities of luxury listings and the potential growth in cities like Dallas-Fort Worth and Tampa!

43:49

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Quick takeaways

The panel reviewed their previous housing market predictions, acknowledging inaccuracies while recognizing specific successes in forecasting inventory trends.

Looking ahead to 2025, they expect moderate home price increases driven by supply-demand dynamics, with millennials entering the market seeking opportunities.

Deep dives

Reviewing 2024 Real Estate Predictions

The panel reflects on their bold predictions for the 2024 housing market, assessing which ones were accurate and which were not. They discuss Zillow's forecasts, particularly noting that their predictions for home buying costs leveling off were incorrect, as prices continued to rise amid high mortgage rates. Conversely, Zillow accurately predicted increased home listings, with inventory rising significantly over the year. The panel concludes that while some predictions were spot on, others failed to align with actual market trends, highlighting the inherent uncertainty in real estate forecasting.

Intro

3min

Housing Market Insights and Predictions

8min

Evaluating Zillow's Housing Market Predictions

4min

Reflecting on Housing Market Predictions

7min

Navigating High-Value Real Estate Challenges

8min

2025 Housing Market Predictions

9min

Future Events and Reflections on Past Investments

2min

It’s what you’ve all been waiting for—our 2025 housing market predictions! We’re sharing where we think home prices, interest rates, and real estate will be over the next year. But we’re not just talking about 2025. We’re also going BACK and reviewing our 2024 housing market forecast, painfully detailing each part we got wrong and congratulating whoever got their predictions right. But how did top real estate companies like Zillow perform on their forecasts? Don’t worry; we’re rating their predictions as well!

Last year, some of us thought home prices would decline year-over-year, while others were confident we’d still see rising prices. We also had surprisingly accurate mortgage rate predictions, so does that mean we could be right for 2025, too? Stick around to find out! Plus, we’re sharing where we think will become the country's best real estate investing markets and naming the cities we believe have the best potential for building wealth!

In This Episode We Cover:

Updated 2025 housing market predictions and where home prices and mortgage rates could go

How we (and Zillow!) did on our 2024 housing market forecast (plus what we got WRONG!)

Real estate markets that have the most investment potential in 2025

Why we’re all becoming bullish on lower mortgage rates, EVEN with persistent inflation

Did we ever actually make it into recession territory in 2024?

And So Much More!

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