BiggerPockets Real Estate Podcast
Signs the Housing Market is Becoming “Healthier” in 2025
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!
19:22
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Quick takeaways
- A healthy housing market depends on balancing supply and demand to minimize price fluctuations and maintain affordability.
- Despite current challenges like low affordability and decreased transaction volume, there are signs of potential improvement in the market.
Deep dives
Defining a Healthy Housing Market
A healthy housing market is characterized by five key criteria: a good balance between supply and demand, prices that keep up with inflation, reasonable affordability, solid transaction volume, and low rates of distress. The balance between buyers and sellers is crucial for market health, as it prevents excessive price fluctuations. Historically, prices in a healthy market should rise at a rate comparable to inflation, around 2-3%. Additionally, affordability ensures that the average person can purchase a home, which is vital for wealth building and maintaining a stable economy.
