HousingWire Daily Mike Simonsen on home price cuts and what the trend means for the spring housing market
Feb 6, 2025
Mike Simonsen, President of Altos Research, shares his expertise on current real estate trends. He discusses the rising trend of home price cuts as sellers react to reduced buyer activity amid high mortgage rates. Simonsen highlights the unusual uptick in price reductions this spring, emphasizing the struggle sellers face in attracting buyers. He also analyzes regional disparities in home prices and the impact of economic uncertainties on the housing market, urging the importance of continuous data analysis for forecasting.
AI Snips
Chapters
Transcript
Episode notes
Slow Home Sales
- Home sales are slow, falling below 2024 numbers each week.
- This slowdown is attributed to the 7% mortgage rates prevalent since December.
Rising Price Reductions
- The percentage of homes on the market with price cuts is increasing, which is unusual for this time of year.
- This suggests sellers are responding to buyers waiting for potential mortgage rate drops.
Local Home Prices
- Home prices are very local, with some areas experiencing drops while others remain tight.
- Silicon Valley, for example, has extremely low inventory compared to similar-sized areas.