BiggerPockets Real Estate Podcast

Home Prices Could Stagnate for Years

50 snips
Aug 18, 2025
J Scott, a seasoned real estate investor and co-author of 'Real Estate by the Numbers,' delves into the potential stagnation of home prices, challenging the long-held expectation of annual appreciation. He discusses key factors influencing real estate, strategies for maximizing property value without relying on appreciation, and the benefits of specific financing options in today's market. Scott also explores the historical context of real estate prices and shares insights on navigating investments during uncertain times.
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INSIGHT

Prices May Plateau As Inflation Rises

  • Housing likely stays flat for several years as inflation rises and prices revert to long-term trends.
  • J Scott expects inflation to climb while real estate plateaus until the trend lines reconverge.
INSIGHT

Supply And Demand Drive Price Direction

  • Prices need lower supply or higher demand to rise, which seems unlikely in the near term.
  • Significant price drops require large supply increases or big demand collapses, which J Scott views as improbable without a severe recession.
INSIGHT

Lower Fed Rates Won't Guarantee Cheaper Mortgages

  • Mortgage rates likely won't fall much unless the economy softens, because bond markets and mortgages respond to economic fundamentals.
  • Fed cuts alone may not lower mortgage rates without a weaker economy to move bond markets.
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