Mike Simonsen

In this discussion, Mike Simonsen, Chief Economist at Compass, unpacks the impact of falling mortgage rates on housing inventory. He reveals how lower rates might not benefit homeowners as expected and explores buyer and seller behavior in this evolving market. The conversation dives into regional differences, particularly in California and the Northeast, highlighting migration patterns and their influence on inventory. Simonsen also critiques rising home price reductions and the complexities of pending sales as interest rates fluctuate.

Mike Simonsen, Chief Economist at Compass, shares valuable insights on the future of housing affordability. He predicts improvements by 2026, linking this to rising incomes and flattening prices. Simonsen explains how affordability is measured and discusses the monthly payment impacts from inflation. As he analyzes the correlation between unsold inventory and future price growth, he highlights market corrections in Western Florida and Austin. With a positive outlook, he anticipates possible sales growth driven by lower rates and returning listings.

Mike Simonsen, Chief Economist at Compass, brings his expertise to the conversation about the housing market's fluctuating dynamics. With 42% of homes seeing price cuts, Simonsen explains how this trend doesn’t necessarily indicate a crash. Instead, he highlights how rising inventory and falling prices offer buyers newfound negotiating power. The discussion also touches on the impact of high interest rates and evolving economic factors reshaping mortgage rates, providing listeners with valuable insights into navigating today’s real estate landscape.