On The Market Major Forecasters Revise Price Predictions, “More Softening to Come”
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Aug 4, 2025 Lance Lambert, editor-in-chief of ResiClub, brings his expertise in housing market analysis to the table. He discusses the recent tripling of large markets with falling home prices, driving buyers toward new constructions. The conversation reveals how rising mortgage rates are altering market dynamics, shifting from seller to buyer favor. With insights on underwater mortgages and delinquency rates, Lance forecasts that while corrections are happening, the situation remains more stable than past downturns.
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Housing Market Softening Explained
- The housing market is softening due to the pandemic boom's unmet housing demand and rapid price increases.
- Mortgage rate shocks revealed affordability issues, causing a market shift from sellers to buyers in many areas.
Supply-Demand Shifts Favor Buyers
- Increasing active inventory combined with lower demand pushes the market toward buyer favor.
- The adjustment to higher rates and softer demand has taken time but is now widespread.
Sunbelt Market and New Construction Dynamics
- Sunbelt markets face stronger price corrections due to earlier rapid rises and migration slowdowns.
- Builders use aggressive incentives on new construction, drawing buyers from resale homes and increasing resale inventory.