BiggerPockets Real Estate Podcast Signs the Housing Market is Becoming “Healthier” in 2025
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May 8, 2025 Dive into the intricacies of the housing market's health, exploring five critical evaluation criteria. Discover how the market is normalizing post-pandemic with fluctuating inventory levels and demand. Gain insight into key indicators like supply and pricing dynamics amidst inflation. While there's cautious optimism for the future, challenges such as high interest rates and affordability remain pressing issues. Tune in for actionable tips on navigating investment opportunities despite market uncertainties!
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Five Criteria Define Healthy Market
- A healthy housing market balances supply and demand, keeps prices with inflation, maintains affordability, shows solid transaction volume, and has low distress rates.
- These five criteria help measure market health beyond just price trends.
Housing Market Imbalance Evident
- The housing market has lacked balance, transaction volume, and affordability in recent years.
- Prices have kept pace with inflation, and distress in the market remained low, which is a positive sign.
Signs of Market Improvement in 2025
- Recent modest year-over-year growth in pending sales shows improving transaction volume.
- Inventory is rising and demand remains high despite higher mortgage rates, indicating movement toward market health.