June 1, 2025 • 22 mins
The housing market enters 2025 with high prices, stubborn rates, and uncertainty, but experts don't foresee a 2008-style crash due to record-low supply and unprecedented homeowner equity. Monthly mortgage payments have skyrocketed 108% since the pandemic, creating an affordability crisis despite the gradual cooling of price growth in some regions.
• U.S. home prices show 3.9% annual gain in February 2025, cooling from previous double-digit jumps
• Northeast continues seeing stronger price gains while Southeast and West show more inventory
• Homeowners possess $34.7 trillion in equity, with 47% of mortgaged homes considered "equity-rich"
• Foreclosure levels remain 90% below 2010 crisis peak due to high equity levels
• The "lock-in effect" keeps homeowners with 2-3% mortgages from selling to buy at today's 6.5%+ rates
• New construction faces challenges with tariffs adding approximately $10,900 per home
• Builder sentiment remains negative with housing starts down 14% month-over-month
• Experts advise against trying to time the market perfectly - buy when you find a home that meets your needs and budget
• Focus on monthly payment affordability rather than just purchase price
• Make your home look fantastic online when selling and price competitively from the start
If you're interested in our sponsor Flowers Associates Property Rentals, specializing in special needs housing, call 901-621-3544 or visit flowersandassociatesnet. Check out Robert Flowers' book "The Joy of Helping Others: Creating Passive Income Streams Through Special Needs Housing" on Amazon.
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Episode Transcript
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Speaker 1 (00:00):
OK, let's unpack this .
You feel it right that tensionin the air whenever housing
comes up.
Prices are high rates feel kindof stubborn and there's just
this big question mark hangingover everything, especially
looking toward 2025.
Speaker 2 (00:16):
Yeah, definitely a lot of uncertainty.
Speaker 1 (00:17):
So for this deep dive , we're tackling that head on.
We're digging into a recentForbes advisor article Housing
Market Predictions for 2025.
When will home prices drop?
Speaker 2 (00:29):
Right, and our goal here is pretty simple really we
want to cut through some of thenoise.
We'll look at the keypredictions, the actual data
points in this source, and tryto figure out what the experts
are really saying about wherethings are headed and, maybe,
more importantly, why themarket's acting this way.
Give you the clearest picturewe can from this info.
Speaker 1 (00:47):
Okay, now, before we jump into all the numbers and
predictions, let's take a quickmoment.
We want to mention our sponsor.
Speaker 2 (00:51):
Absolutely Big thank you to Flowers Associates
Property Rentals.
They have a really interestingfocus special needs housing.
Speaker 1 (00:57):
Yeah, it's quite a specific niche.
It's not just standard rentals.
It's about providing, you know,vital supportive housing for
people who need it, and thesource mentions it's also a
potential way to generatepassive income.
Speaker 2 (01:11):
Which is an interesting angle.
So if that sparks yourcuriosity, maybe you want to
learn more about their approach.
You can reach them at901-621-3544.
Speaker 1 (01:21):
Or check out their website flowersandassociatesnet.
Speaker 2 (01:24):
And there's also a book by Robert Flowers called
the Joy of Helping OthersCreating Passive Income Streams
Through Special Needs Housing.
Speaker 1 (01:31):
Yeah, I actually picked that up.
I have to say I found it areally insightful read.
It lays out the model, thebenefits.
It's quite compelling.
You can find it on Amazon.
Speaker 2 (01:40):
It definitely offers a different lens on property and
investment, one that combinescommunity impact with a
financial strategy.
Speaker 1 (01:47):
Exactly so.
Whether you're trying tonavigate the traditional market
or maybe thinking about otheravenues in property, getting
informed is key.
All right, let's get back tothat Forbes article.
What's it saying about 2025?
Speaker 2 (01:59):
Well, the picture it paints initially is one of
caution.
You've got wary consumers,prices still near record highs,
those mortgage rates stayingelevated and just a generally
volatile economic backdrop.
Speaker 1 (02:11):
Does that sound about right for the environment
they're describing?
Speaker 2 (02:14):
That's pretty spot on .
Yeah, it's a tough landscapeout there, but interestingly,
the article does mention whatthey call green shoots.
Speaker 1 (02:20):
Green shoots like signs of life.
Speaker 2 (02:22):
Sort of Small things like price growth maybe
decelerating in some regions andinventory starting to, you know
, gradually expand a bit.
Speaker 1 (02:31):
Okay, a little bit of thawing maybe.
Speaker 2 (02:33):
Maybe, but the big underlying issue, the high cost
of actually owning a home that'slikely to persist, according to
the article.
Speaker 1 (02:40):
Right, let's zero in on prices.
Then the article gives us aspecific data point.
The article Right, let's zeroin on prices.
Then the article gives us aspecific data point.
S&p CoreLogic Case-Shiller saysUS home prices had a 3.9
percent annual gain in February2025.
That was down just a bit from4.1 percent in January.
Is that tiny dip significant?
Speaker 2 (03:02):
Well, the dip itself isn't huge month to month.
What's more important is thebroader trend it represents, the
pace of that price growth.
It's slowed way down comparedto the crazy double-digit jumps
we saw before and the expertscited expect this cooling to
continue, mainly because of allthe economic uncertainty
swirling around.
Speaker 1 (03:17):
And this cooling isn't happening everywhere
equally, is it?
I think, Selma Hepp?
Speaker 2 (03:23):
chief economist at Cotality pointed that out
Exactly Big regional differences.
She mentions places that theNortheast are actually still
seeing stronger gains.
Speaker 1 (03:30):
Why is that happening there?
Speaker 2 (03:32):
It seems to be a combo of things like decent
income growth in those areasplus just a severe ongoing
shortage of houses for sale,real supply crunch, gotcha.
But then you look at thesoutheast and the west different
story More inventories comingonline there.
Demand might be weakening a bit, so you're seeing more price
discounts or at least muchslower price gains when you are
(03:53):
really matters.
Speaker 1 (03:54):
Okay, makes sense.
Now let's tackle the big one,the elephant in the room, really
.
The article asks us directly isa housing market crash coming
in 2025?
You know, like 2008, all overagain.
Speaker 2 (04:04):
Yeah, that's the fear for a lot of people.
But the experts quoted in thissource they're pretty clear.
They think the odds of a 2008style crash are low.
Speaker 1 (04:13):
Whoa OK why.
Speaker 2 (04:15):
Well, tom Hutchins from Angel Oak Mortgage
Solutions puts it bluntly.
He says essentially that therecord low supply of houses
protects against a crash.
Speaker 1 (04:25):
How does low supply stop a crash exactly?
Can you break that down?
Speaker 2 (04:29):
Sure, it's basic supply and demand right, if
there just aren't that manyhomes for sale relative to the
number of people who want to buy.
Even if demand cools off,prices might soften, maybe dip
in some areas, sure, but they'reunlikely to just collapse
because there's no flood ofproperties hitting in the market
all at once to drag values downsuper fast.
Speaker 1 (04:49):
Okay, that makes sense.
Lack of inventory provides afloor Pretty much.
Speaker 2 (04:53):
And there's another huge difference from 08 that the
article stresses.
Speaker 1 (04:56):
What's that?
Speaker 2 (04:57):
Homeowners themselves are just on much more solid
ground today.
People have way more equitybuilt up and actually a record
number of people own their homesoutright, no mortgage at all.
That's completely differentfrom 2008, when so many people
were highly leveraged, owingalmost as much as the home was
worth, or sometimes even more.
Speaker 1 (05:13):
Okay.
So maybe not a crash like 08,but the article definitely talks
about a major problemaffordability.
What does the data show aboutthe actual cost?
What's it really take to buynow?
Speaker 2 (05:24):
Yeah, this is where it gets pretty stark.
The Zillow data cited is reallytelling.
In March 2025, the typical UShome value around $361,000.
Okay, now let's say you put 20%down, finance the rest.
The average rate that week was6.65%.
Your estimated monthly payment,just principal and interest,
would be about under $853.
Speaker 1 (05:44):
And I think the article compared that to the
year before March 2024.
The price was a bit lower, like$354,000.
The rate was slightly higher,6.79%, but the payment was
around $8,844, only nine bucksdifference per month year over
year.
Speaker 2 (06:00):
That doesn't sound too bad, right, but that tiny
year over year change is reallydeceptive.
Because the real story, the bigaffordability challenge
highlighted by Zillow, since thepandemic started, monthly
mortgage payments have shot up.
Speaker 1 (06:13):
Wait for it over 108% .
Speaker 2 (06:14):
Over, double, over, double.
Think about that.
Yeah, you know the old rule ofthumb spend maybe 28% of your
income on housing.
Speaker 1 (06:19):
Yeah.
Speaker 2 (06:19):
Well, according to this data, that typical mortgage
payment now eats up about 35.3%of the median household income.
That huge gap between thehistorical norm and today's
reality.
That is the affordabilitycrisis.
Speaker 1 (06:34):
OK, that 108% number really puts it in perspective.
So if affordability is themassive hurdle, what does the
article say needs to change forthings to get better, for the
market to recover or, you know,find more balance.
Speaker 2 (06:45):
The source basically points to two main things
needing to happen.
First, inventory the number ofhomes for sale needs to go up
considerably higher.
That's a quote from KeithGummiger at HSHcom.
Speaker 1 (06:55):
Right More supply should take some pressure off
prices.
Basic economics Exactly.
Speaker 2 (07:00):
And the second big factor mortgage rates.
They need to come downsignificantly for there to be a
meaningful increase in housingmarket activity.
Speaker 1 (07:08):
But rates have been pretty sticky, haven't they?
Speaker 2 (07:10):
Oh yeah, they've been stubbornly parked above 6.5
percent for months.
Now you know there's talk aboutthe Federal Reserve maybe
cutting their key interest rate,which could indirectly help
mortgage rates.
But the whole economic pictureis still so uncertain it's
really hard to say when or ifsignificant rate relief will
(07:30):
arrive.
Speaker 1 (07:31):
And didn't the article mention a kind of
warning about rates falling toofast?
Speaker 2 (07:34):
It did, yeah.
Gumbinger points out that ifrates suddenly dropped really
quickly, it might actuallybackfire in the short term.
Speaker 1 (07:41):
How so.
Speaker 2 (07:42):
Well, it could unleash all this pent-up buyer
demand right.
Everyone jumps back in and thatsurge could just instantly
gobble up any inventory gainswe've seen, potentially pushing
prices right back up again fast.
Speaker 1 (07:53):
Ah, ok, so a gradual decline would be better.
What's considered a normal ratethen, according to him?
Speaker 2 (07:59):
He suggests maybe something in the upper 4 percent
lower 5 percent range mightfeel more sustainable or normal.
But getting there could take awhile.
Speaker 1 (08:08):
Okay, let's look at the actual sales numbers the
article presents.
Sounds like a bit of a mixedbag.
Speaker 2 (08:12):
Definitely mixed.
Okay.
So first, existing home sales.
This is data from the NationalAssociation of Realtors, NAR.
Those actually fell in March,down almost 6% from February and
over 2% from the year before.
And that happened even thoughrates had cooled off just a tiny
bit, so sales are still weak.
Very weak.
Historically, lawrence Yun, anheirs economist, is quoted
(08:35):
saying sales have basically beenbumping along at 30-year lows
for the past couple of years.
Speaker 1 (08:40):
Wow, but wait, didn't inventory, do something
different.
Speaker 2 (08:43):
Yes, this is where it gets really interesting.
Even with sales volumes waydown, the actual number of
existing homes listed for salejumped quite a bit in March, up
over 8% month over month andalmost 20% compared to the year
before.
Speaker 1 (08:57):
Okay.
Speaker 2 (08:58):
That brought the supply up to about four months
worth, which is actually gettingclose to what's considered a
balanced market technically.
Speaker 1 (09:04):
But did prices reflect that?
Did they drop?
Speaker 2 (09:07):
Nope, that's the kicker.
Nationally, the median existinghome price still went up.
It hit $403,700.
That's up 2.7% from the yearbefore and it was the 21st month
in a row of year-over-yearprice increases.
Speaker 1 (09:20):
Hold on.
Sales are down near historiclows, inventory jumps
significantly closer to balanced, but prices still go up.
How does that even work?
Speaker 2 (09:30):
It really highlights the weird tension in this market
, doesn't it?
It speaks to how, even withdemand, lower the absolute level
of inventory while improving isstill tight enough in many
places to support prices.
Plus, you have that lock-ineffect.
We should talk more abouthomeowners with super low rates
who just aren't selling.
That keeps a lid on the supplyof existing homes.
Speaker 1 (09:49):
Okay, we definitely need to circle back to that
lock-in effect.
What about new home sales?
Did they fare any better?
Speaker 2 (09:53):
A little bit better.
Yeah, According to the CensusBureau and HUD data in the
article, new home sales actuallyincreased up over 7% for the
month and 6% compared to theprevious year.
A lot of that strength wasapparently in the south.
Speaker 1 (10:05):
Do builders have more inventory?
Speaker 2 (10:07):
They do.
The new home market had aboutan 8.3 month supply, which is
considered pretty healthy Morebreathing room there.
Speaker 1 (10:13):
But the article mentioned challenges for
builders too.
Right, it wasn't all smoothsailing.
Speaker 2 (10:17):
Not at all.
It specifically points tothings like tariffs really
driving up the cost ofconstruction materials.
The estimate mentioned wasaround $10,900 extra cost per
home.
Yeah, and that makes it harderfor builders to offer big price
cuts or incentives to lurebuyers, even with more inventory
.
Speaker 1 (10:36):
And there was something striking about the
price of new homes too.
Speaker 2 (10:39):
Right, this was really interesting.
The median price for a new homesold in March 2025 was $403,600
.
Okay, which is almost identicalto the median price for an
existing home, which was$403,600.
Okay, which is almost identicalto the medium price for an
existing home, which was$403,700.
Speaker 1 (10:53):
Wow.
Usually new homes are quite abit more expensive, aren't they?
Speaker 2 (10:56):
Typically yes, so that convergence is unusual.
It suggests that even withhealthier inventory, those high
construction costs are keepingnew home prices elevated right
near the level of resale homes.
Speaker 1 (11:07):
Fascinating.
Okay, what about the lastcategory pending home sales, the
ones under contract but notclosed yet?
Speaker 2 (11:13):
Those offered a little glimmer of hope.
Maybe they jumped over 6% inMarch.
Speaker 1 (11:17):
Okay, so that dip in rates did pull some buyers off
the sidelines.
Speaker 2 (11:21):
It seems like it.
Yeah, it indicates some renewedinterest, but context is
important.
Even with that jump hending,sales were still down slightly
compared to the year before andoverall volumes remained pretty
low historically.
Speaker 1 (11:35):
So still cautious optimism at best there.
Speaker 2 (11:38):
Exactly.
Joel Berner is quoted pointingto that mix of factors holding
demand back Still high rates,high prices, maybe some worries
about trade wars impactingconfidence, just general
economic jitters.
Speaker 1 (11:51):
OK, you mentioned the lock-in effect being a major
reason.
Existing home inventory isstill tight despite those recent
gains.
Can you explain that a bit more?
Speaker 2 (12:00):
Yeah, this is a really crucial piece of the
puzzle right now.
It's probably the biggestsingle thing holding back the
supply of homes for sale.
Ok, think about it.
Millions and millions ofhomeowners either bought or
refinanced when mortgage rateswere at rock bottom.
We're talking 2%, 3%, maybe low4s.
Speaker 1 (12:16):
Right those amazing rates just a few years ago?
Speaker 2 (12:18):
Exactly so.
Now they're effectively lockedin, why would they sell their
home and give up that incrediblerate only to have to buy a new
place and take out a mortgage at, say, 6.5% or 7%?
Yeah, the payment differencewould be huge.
Speaker 1 (12:33):
Yeah, that math just doesn't work for most people
unless they absolutely have tomove.
Speaker 2 (12:37):
Precisely.
Rick Sharga is quoted in thearticle saying that for us to
see a really meaningful increasein the supply of existing homes
hitting the market enough tomake a real difference, rates
probably need to fall quite abit further, maybe down into the
low 5% range, potentially evenlower.
Speaker 1 (12:54):
So until then, a lot of potential sellers are just
staying put.
Speaker 2 (12:57):
Staying put.
That's the lock-in effect andit's a major inventory headwind.
Speaker 1 (13:00):
The article also touches on some bigger picture
things influencing the market,like government policies.
Speaker 2 (13:05):
It does yeah.
Speaker 1 (13:06):
Yeah.
Speaker 2 (13:09):
It neutrally references how certain policies
could impact things.
For instance, tariffs wementioned how those increase
building costs.
Immigration policies arementioned in the context of
potentially affecting theavailability of construction
labor, and there are discussionsnoted about using federal land
for development which could helpor hinder efforts to boost
overall housing supply.
Just factors to be aware of inthe background.
Speaker 1 (13:29):
And what about the builders themselves?
How are they feeling?
What's their sentiment like?
Speaker 2 (13:33):
Well, the main index tracking that, the NHB Wells
Fargo Housing Market Index.
It ticked up just a tiny bit inApril to a reading of 40.
Speaker 1 (13:42):
But wasn't 50 the important number there?
Speaker 2 (13:44):
Exactly Anything below 50 means more builders see
conditions as poor than seethem as good.
Exactly Anything below 50 meansmore builders see conditions as
poor than see them as good.
So while it kicked up slightly,sentiment is still negative
overall.
It hasn't actually been abovethat 50 mark since way back in
April 2024.
So, still pretty cautious ontheir end, very cautious.
Robert Dietz from NAHB connectsit back to that policy
(14:05):
uncertainty we mentioned andalso the direct hit from tariff
costs making it harder to buildhomes people can afford.
Speaker 1 (14:12):
And does the actual construction data back that up?
Are fewer homes being built?
Speaker 2 (14:16):
It seems so.
The Sentosa data showedsingle-family housing starts
that's when they actually beginconstruction.
They slumped prettysignificantly in March, down
over 14% from February andalmost 10% from the year before
March, down over 14% fromFebruary and almost 10% from the
year before.
Ooh yeah, completions were upslightly, but the starts number
is the key indicator for futuresupply and that signals a
slowdown which again doesn'thelp the overall inventory
(14:39):
problem.
Speaker 1 (14:39):
Okay, let's switch gears slightly.
Foreclosures With all theeconomic pressure and high costs
, is the article suggesting wemight see a wave of foreclosures
, adding inventory or causing?
Speaker 2 (14:50):
problems.
It looks at the data from AdamForeclosure.
Starts were up a bit in thefirst quarter of 2025, 14
percent compared to the previousquarter and 2 percent compared
to the year before.
Speaker 1 (15:00):
OK, and homes actually taken back by lenders
REOs.
Speaker 2 (15:03):
Those were up 8 percent from the prior quarter
but actually down 4 percent fromthe year before.
Speaker 1 (15:07):
So some increases quarter over quarter, but mixed
annually.
Does the article put this intoperspective?
Is it alarming?
Speaker 2 (15:14):
No, and this context is really, really important.
Rob Barber from Adam is quoted,emphasizing that these
foreclosure levels are still way, way below historical averages.
How far below?
Like 35% below the levels seenjust before the pandemic in 2019
.
And a massive 90% below thepeak we saw back in 2010 during
(15:34):
the last crisis 90% below thepeak.
Speaker 1 (15:37):
Okay, that's huge context.
Speaker 2 (15:38):
It is so.
Yes, the quarterly upticksuggests some homeowners are
definitely feeling the financialstrain, but it's absolutely
nowhere near the kind of volumethat would destabilize the
market like we saw in the past.
Speaker 1 (15:50):
And why is that?
What's preventing a bigger wave?
Speaker 2 (15:52):
This is where it gets really interesting and it
connects back to what we saidearlier.
It's homeowner equity.
There's just this massivebuffer.
Federal Reserve data showedhomeowners sitting on over $34.7
trillion in equity at the endof 2024.
Speaker 1 (16:07):
$34 trillion.
That number is just staggering.
Speaker 2 (16:09):
It really is, and it means a record percentage of
homes are considered equity rich.
That's where the mortgage owedis 50% or less of what the home
is actually worth.
Over 47% of homes withmortgages fell into that
category in late 2024.
Compare that to just 26.5%right before the pandemic hit in
early 2020.
Big jump.
So what does before thepandemic hit in early 2020.
Big jump.
Speaker 1 (16:30):
So what does all that equity do in terms of
foreclosures?
Speaker 2 (16:33):
Well, as Rick Sharge explains in the article, it
gives homeowners options if theyhit financial trouble.
Instead of just defaulting,they can potentially tap into
that equity through a loan orline of credit if needed.
Or, more commonly, they cansimply sell the house, pay off
the mortgage completely andlikely still walk away with a
significant profit.
Speaker 1 (16:53):
Ah, so they can sell before getting into foreclosure
trouble.
Speaker 2 (16:55):
Exactly that ability to sell solvently prevents the
kind of distressed sales andforeclosure wave that really
defined the 2008 downturn.
That equity cushion is afundamental difference this time
around.
Speaker 1 (17:06):
Okay.
So after looking at all thisthe slowing price growth, the
stubborn rates, the inventorydynamics, building headwinds,
low foreclosures thanks toequity we get to the big
question, the one probably onevery listener's mind if they're
thinking about moving Is 2025shaping up to be a good year to
actually buy a house?
Speaker 2 (17:22):
Yeah, the million-dollar question, right?
Or maybe the several hundredthousand-dollar question these
days.
Speaker 1 (17:26):
Ah, yeah, probably.
Speaker 2 (17:27):
Well, the experts quoted, like Orphid Devongi from
Zillow Home Loans and KeithGumminger again, they offer
pretty similar advice here.
They really stress that buyinga home is such a personal
decision.
It has to be based on yourfinances, your life situation,
your needs.
Speaker 1 (17:46):
Not just the market conditions your finances, your
life situation, your needs, notjust the market conditions.
Speaker 2 (17:48):
Right, and they both say pretty clearly that trying
to perfectly time the market,catching the absolute bottom for
prices or rates, is quotealmost impossible.
Speaker 1 (17:57):
So don't wait for the perfect moment.
That might never come.
Speaker 2 (18:01):
That seems to be the message they argue the best time
to buy is really when you finda home that fits your needs and,
crucially, that you cancomfortably afford based on your
budget right now.
Speaker 1 (18:11):
And the article suggested waiting could be risky
too.
Speaker 2 (18:14):
Yeah, the idea being that if you wait, hoping for
prices or rates to fallsignificantly, the goalposts
might just keep moving furtheraway.
Like maybe prices keep creepingup, even slowly, so the down
payment even gets bigger, ormaybe rates dip but prices jump.
It's unpredictable.
Speaker 1 (18:28):
And there's the benefit of just getting in the
market right.
The article mentioned thehousing ladder.
Speaker 2 (18:33):
Exactly Getting on that ladder allows you to start
building your own equity overtime, building your net worth.
That's a huge factor inlong-term financial well-being.
So the decision becomes lessabout predicting market peaks
and valleys and more about yourpersonal readiness and long-term
financial goals.
Speaker 1 (18:49):
OK.
So the Forbes Advisor articlewraps up with some practical
tips for people trying tonavigate this tricky market,
whether buying or selling.
What are the key takeawaysthere?
Speaker 2 (19:00):
Yeah, some good grounded advice For buyers.
Hannah Jones from Realtorcomand Scott Bridges from PennyMac
suggest a few things Like what.
First, really know your monthlypayment budget inside and out.
Focus on that, maybe even morethan the total price tag.
Second, be flexible, maybe onthe exact size of the house or
the specific neighborhood.
Third, watch your local marketlike a hawk.
(19:22):
Conditions can vary block byblock sometimes.
Speaker 1 (19:24):
Oh, okay, stay local.
Speaker 2 (19:26):
Definitely Also try not to get too discouraged by
how tough it is and maybe mostimportantly, get pre-approved
for a mortgage early, Like rightat the start.
Speaker 1 (19:35):
Why is that so crucial?
Speaker 2 (19:36):
Because then you know exactly what you can
realistically afford and itmakes any offer you eventually
make much stronger in theseller's eyes.
Shows you're serious and ready.
Speaker 1 (19:44):
Makes sense.
What about tips for sellers?
Gary Ashton from RemaxAdvantage had some thoughts.
Speaker 2 (19:50):
He did.
First do your homework oncomparable prices what have
similar homes nearby actuallysold for recently?
Then price competitively fromthe start.
You need to understand if yourspecific type of property in
your price range is facing moreof a buyer's market right now.
Speaker 1 (20:06):
So be realistic about price.
Speaker 2 (20:08):
Very realistic.
Also, make your home lookabsolutely fantastic, especially
online.
That online curb appeal iseverything now.
First impressions count bigtime.
He also stresses working with agood local agent who really
knows the current nuances.
And finally, be proactive.
If there are obvious repairsneeded, fix them before you list
.
Don't give buyers easy reasonsto walk away or lowball you.
Speaker 1 (20:31):
Good, practical stuff , okay, so let's try to pull
this all together.
What's the big picture takeawayfrom this deep dive into the
Forbes advisor piece on the 2025market?
It sounds like the consensusisn't predicting that 2008-style
crash some people fear.
Speaker 2 (20:46):
No, seems unlikely, based on this source.
Speaker 1 (20:48):
But it is predicting a continuation of these really
significant affordabilityproblems for a lot of people.
Speaker 2 (20:54):
That seems to be the core tension.
Yes, yeah, we've seen all thesecomplex forces interacting
Price growth slowing but notreally falling, those mortgage
rates staying painfully high,inventory slowly ticking up but
still held back by that lock-ineffect.
Speaker 1 (21:08):
Right.
Speaker 2 (21:08):
New construction facing cost hurdles and
foreclosures staying low, mainlybecause homeowners have so much
equity.
It's just a market defined bythese competing pressures.
Speaker 1 (21:17):
Which brings us back to that central point.
And maybe a final question foryou, the listener, to think
about.
Given that the expertsthemselves say timing the market
is basically impossible andthat buying or selling is so
personal, how much weight shouldyou really put on forecasts
like these, versus just focusingsquarely on your own situation,
your job stability, yoursavings, your family needs, your
(21:38):
long term goals?
Speaker 2 (21:39):
It's really about using this information to
understand the landscape, theheadwinds, the potential
opportunities, but thengrounding your final decision on
what's truly right for youpersonally and financially.
Speaker 1 (21:51):
Yeah, well said.
We've definitely covered a lotof ground today from that Forbes
advisor article.
Hopefully it helps you feelbetter informed and more
confident navigating all thetalk about the 2025 housing
market.
Speaker 2 (22:02):
And before we wrap up , just one final reminder about
our sponsor, Flowers andAssociates Property Rentals.
They specialize in providingthat vital special needs housing
.
That's right.
Speaker 1 (22:10):
And if you're interested in their model, maybe
exploring how creating passiveincome streams through that
specific type of housing works,you can reach out to them.
The number again is901-621-3544.
Speaker 2 (22:23):
Or find them online at flowersandassociatesnet.
And don't forget RobertFlowers' book the Joy of Helping
Others Creating Passive IncomeStreams Through Special Needs
Housing.
Speaker 1 (22:33):
Available on Amazon.
Definitely worth a read if thatarea interests you.
Speaker 2 (22:36):
Okay, that does it for our deep dive today.
We really hope this was helpful.
OK, let's unpack this .
You feel it right that tensionin the air whenever housing
comes up.
Prices are high rates feel kindof stubborn and there's just
this big question mark hangingover everything, especially
looking toward 2025.
Speaker 2 (00:16):
Yeah, definitely a lot of uncertainty.
Speaker 1 (00:17):
So for this deep dive , we're tackling that head on.
We're digging into a recentForbes advisor article Housing
Market Predictions for 2025.
When will home prices drop?
Speaker 2 (00:29):
Right, and our goal here is pretty simple really we
want to cut through some of thenoise.
We'll look at the keypredictions, the actual data
points in this source, and tryto figure out what the experts
are really saying about wherethings are headed and, maybe,
more importantly, why themarket's acting this way.
Give you the clearest picturewe can from this info.
Speaker 1 (00:47):
Okay, now, before we jump into all the numbers and
predictions, let's take a quickmoment.
We want to mention our sponsor.
Speaker 2 (00:51):
Absolutely Big thank you to Flowers Associates
Property Rentals.
They have a really interestingfocus special needs housing.
Speaker 1 (00:57):
Yeah, it's quite a specific niche.
It's not just standard rentals.
It's about providing, you know,vital supportive housing for
people who need it, and thesource mentions it's also a
potential way to generatepassive income.
Speaker 2 (01:11):
Which is an interesting angle.
So if that sparks yourcuriosity, maybe you want to
learn more about their approach.
You can reach them at901-621-3544.
Speaker 1 (01:21):
Or check out their website flowersandassociatesnet.
Speaker 2 (01:24):
And there's also a book by Robert Flowers called
the Joy of Helping OthersCreating Passive Income Streams
Through Special Needs Housing.
Speaker 1 (01:31):
Yeah, I actually picked that up.
I have to say I found it areally insightful read.
It lays out the model, thebenefits.
It's quite compelling.
You can find it on Amazon.
Speaker 2 (01:40):
It definitely offers a different lens on property and
investment, one that combinescommunity impact with a
financial strategy.
Speaker 1 (01:47):
Exactly so.
Whether you're trying tonavigate the traditional market
or maybe thinking about otheravenues in property, getting
informed is key.
All right, let's get back tothat Forbes article.
What's it saying about 2025?
Speaker 2 (01:59):
Well, the picture it paints initially is one of
caution.
You've got wary consumers,prices still near record highs,
those mortgage rates stayingelevated and just a generally
volatile economic backdrop.
Speaker 1 (02:11):
Does that sound about right for the environment
they're describing?
Speaker 2 (02:14):
That's pretty spot on .
Yeah, it's a tough landscapeout there, but interestingly,
the article does mention whatthey call green shoots.
Speaker 1 (02:20):
Green shoots like signs of life.
Speaker 2 (02:22):
Sort of Small things like price growth maybe
decelerating in some regions andinventory starting to, you know
, gradually expand a bit.
Speaker 1 (02:31):
Okay, a little bit of thawing maybe.
Speaker 2 (02:33):
Maybe, but the big underlying issue, the high cost
of actually owning a home that'slikely to persist, according to
the article.
Speaker 1 (02:40):
Right, let's zero in on prices.
Then the article gives us aspecific data point.
The article Right, let's zeroin on prices.
Then the article gives us aspecific data point.
S&p CoreLogic Case-Shiller saysUS home prices had a 3.9
percent annual gain in February2025.
That was down just a bit from4.1 percent in January.
Is that tiny dip significant?
Speaker 2 (03:02):
Well, the dip itself isn't huge month to month.
What's more important is thebroader trend it represents, the
pace of that price growth.
It's slowed way down comparedto the crazy double-digit jumps
we saw before and the expertscited expect this cooling to
continue, mainly because of allthe economic uncertainty
swirling around.
Speaker 1 (03:17):
And this cooling isn't happening everywhere
equally, is it?
I think, Selma Hepp?
Speaker 2 (03:23):
chief economist at Cotality pointed that out
Exactly Big regional differences.
She mentions places that theNortheast are actually still
seeing stronger gains.
Speaker 1 (03:30):
Why is that happening there?
Speaker 2 (03:32):
It seems to be a combo of things like decent
income growth in those areasplus just a severe ongoing
shortage of houses for sale,real supply crunch, gotcha.
But then you look at thesoutheast and the west different
story More inventories comingonline there.
Demand might be weakening a bit, so you're seeing more price
discounts or at least muchslower price gains when you are
(03:53):
really matters.
Speaker 1 (03:54):
Okay, makes sense.
Now let's tackle the big one,the elephant in the room, really
.
The article asks us directly isa housing market crash coming
in 2025?
You know, like 2008, all overagain.
Speaker 2 (04:04):
Yeah, that's the fear for a lot of people.
But the experts quoted in thissource they're pretty clear.
They think the odds of a 2008style crash are low.
Speaker 1 (04:13):
Whoa OK why.
Speaker 2 (04:15):
Well, tom Hutchins from Angel Oak Mortgage
Solutions puts it bluntly.
He says essentially that therecord low supply of houses
protects against a crash.
Speaker 1 (04:25):
How does low supply stop a crash exactly?
Can you break that down?
Speaker 2 (04:29):
Sure, it's basic supply and demand right, if
there just aren't that manyhomes for sale relative to the
number of people who want to buy.
Even if demand cools off,prices might soften, maybe dip
in some areas, sure, but they'reunlikely to just collapse
because there's no flood ofproperties hitting in the market
all at once to drag values downsuper fast.
Speaker 1 (04:49):
Okay, that makes sense.
Lack of inventory provides afloor Pretty much.
Speaker 2 (04:53):
And there's another huge difference from 08 that the
article stresses.
Speaker 1 (04:56):
What's that?
Speaker 2 (04:57):
Homeowners themselves are just on much more solid
ground today.
People have way more equitybuilt up and actually a record
number of people own their homesoutright, no mortgage at all.
That's completely differentfrom 2008, when so many people
were highly leveraged, owingalmost as much as the home was
worth, or sometimes even more.
Speaker 1 (05:13):
Okay.
So maybe not a crash like 08,but the article definitely talks
about a major problemaffordability.
What does the data show aboutthe actual cost?
What's it really take to buynow?
Speaker 2 (05:24):
Yeah, this is where it gets pretty stark.
The Zillow data cited is reallytelling.
In March 2025, the typical UShome value around $361,000.
Okay, now let's say you put 20%down, finance the rest.
The average rate that week was6.65%.
Your estimated monthly payment,just principal and interest,
would be about under $853.
Speaker 1 (05:44):
And I think the article compared that to the
year before March 2024.
The price was a bit lower, like$354,000.
The rate was slightly higher,6.79%, but the payment was
around $8,844, only nine bucksdifference per month year over
year.
Speaker 2 (06:00):
That doesn't sound too bad, right, but that tiny
year over year change is reallydeceptive.
Because the real story, the bigaffordability challenge
highlighted by Zillow, since thepandemic started, monthly
mortgage payments have shot up.
Speaker 1 (06:13):
Wait for it over 108% .
Speaker 2 (06:14):
Over, double, over, double.
Think about that.
Yeah, you know the old rule ofthumb spend maybe 28% of your
income on housing.
Speaker 1 (06:19):
Yeah.
Speaker 2 (06:19):
Well, according to this data, that typical mortgage
payment now eats up about 35.3%of the median household income.
That huge gap between thehistorical norm and today's
reality.
That is the affordabilitycrisis.
Speaker 1 (06:34):
OK, that 108% number really puts it in perspective.
So if affordability is themassive hurdle, what does the
article say needs to change forthings to get better, for the
market to recover or, you know,find more balance.
Speaker 2 (06:45):
The source basically points to two main things
needing to happen.
First, inventory the number ofhomes for sale needs to go up
considerably higher.
That's a quote from KeithGummiger at HSHcom.
Speaker 1 (06:55):
Right More supply should take some pressure off
prices.
Basic economics Exactly.
Speaker 2 (07:00):
And the second big factor mortgage rates.
They need to come downsignificantly for there to be a
meaningful increase in housingmarket activity.
Speaker 1 (07:08):
But rates have been pretty sticky, haven't they?
Speaker 2 (07:10):
Oh yeah, they've been stubbornly parked above 6.5
percent for months.
Now you know there's talk aboutthe Federal Reserve maybe
cutting their key interest rate,which could indirectly help
mortgage rates.
But the whole economic pictureis still so uncertain it's
really hard to say when or ifsignificant rate relief will
(07:30):
arrive.
Speaker 1 (07:31):
And didn't the article mention a kind of
warning about rates falling toofast?
Speaker 2 (07:34):
It did, yeah.
Gumbinger points out that ifrates suddenly dropped really
quickly, it might actuallybackfire in the short term.
Speaker 1 (07:41):
How so.
Speaker 2 (07:42):
Well, it could unleash all this pent-up buyer
demand right.
Everyone jumps back in and thatsurge could just instantly
gobble up any inventory gainswe've seen, potentially pushing
prices right back up again fast.
Speaker 1 (07:53):
Ah, ok, so a gradual decline would be better.
What's considered a normal ratethen, according to him?
Speaker 2 (07:59):
He suggests maybe something in the upper 4 percent
lower 5 percent range mightfeel more sustainable or normal.
But getting there could take awhile.
Speaker 1 (08:08):
Okay, let's look at the actual sales numbers the
article presents.
Sounds like a bit of a mixedbag.
Speaker 2 (08:12):
Definitely mixed.
Okay.
So first, existing home sales.
This is data from the NationalAssociation of Realtors, NAR.
Those actually fell in March,down almost 6% from February and
over 2% from the year before.
And that happened even thoughrates had cooled off just a tiny
bit, so sales are still weak.
Very weak.
Historically, lawrence Yun, anheirs economist, is quoted
(08:35):
saying sales have basically beenbumping along at 30-year lows
for the past couple of years.
Speaker 1 (08:40):
Wow, but wait, didn't inventory, do something
different.
Speaker 2 (08:43):
Yes, this is where it gets really interesting.
Even with sales volumes waydown, the actual number of
existing homes listed for salejumped quite a bit in March, up
over 8% month over month andalmost 20% compared to the year
before.
Speaker 1 (08:57):
Okay.
Speaker 2 (08:58):
That brought the supply up to about four months
worth, which is actually gettingclose to what's considered a
balanced market technically.
Speaker 1 (09:04):
But did prices reflect that?
Did they drop?
Speaker 2 (09:07):
Nope, that's the kicker.
Nationally, the median existinghome price still went up.
It hit $403,700.
That's up 2.7% from the yearbefore and it was the 21st month
in a row of year-over-yearprice increases.
Speaker 1 (09:20):
Hold on.
Sales are down near historiclows, inventory jumps
significantly closer to balanced, but prices still go up.
How does that even work?
Speaker 2 (09:30):
It really highlights the weird tension in this market
, doesn't it?
It speaks to how, even withdemand, lower the absolute level
of inventory while improving isstill tight enough in many
places to support prices.
Plus, you have that lock-ineffect.
We should talk more abouthomeowners with super low rates
who just aren't selling.
That keeps a lid on the supplyof existing homes.
Speaker 1 (09:49):
Okay, we definitely need to circle back to that
lock-in effect.
What about new home sales?
Did they fare any better?
Speaker 2 (09:53):
A little bit better.
Yeah, According to the CensusBureau and HUD data in the
article, new home sales actuallyincreased up over 7% for the
month and 6% compared to theprevious year.
A lot of that strength wasapparently in the south.
Speaker 1 (10:05):
Do builders have more inventory?
Speaker 2 (10:07):
They do.
The new home market had aboutan 8.3 month supply, which is
considered pretty healthy Morebreathing room there.
Speaker 1 (10:13):
But the article mentioned challenges for
builders too.
Right, it wasn't all smoothsailing.
Speaker 2 (10:17):
Not at all.
It specifically points tothings like tariffs really
driving up the cost ofconstruction materials.
The estimate mentioned wasaround $10,900 extra cost per
home.
Yeah, and that makes it harderfor builders to offer big price
cuts or incentives to lurebuyers, even with more inventory
.
Speaker 1 (10:36):
And there was something striking about the
price of new homes too.
Speaker 2 (10:39):
Right, this was really interesting.
The median price for a new homesold in March 2025 was $403,600
.
Okay, which is almost identicalto the median price for an
existing home, which was$403,600.
Okay, which is almost identicalto the medium price for an
existing home, which was$403,700.
Speaker 1 (10:53):
Wow.
Usually new homes are quite abit more expensive, aren't they?
Speaker 2 (10:56):
Typically yes, so that convergence is unusual.
It suggests that even withhealthier inventory, those high
construction costs are keepingnew home prices elevated right
near the level of resale homes.
Speaker 1 (11:07):
Fascinating.
Okay, what about the lastcategory pending home sales, the
ones under contract but notclosed yet?
Speaker 2 (11:13):
Those offered a little glimmer of hope.
Maybe they jumped over 6% inMarch.
Speaker 1 (11:17):
Okay, so that dip in rates did pull some buyers off
the sidelines.
Speaker 2 (11:21):
It seems like it.
Yeah, it indicates some renewedinterest, but context is
important.
Even with that jump hending,sales were still down slightly
compared to the year before andoverall volumes remained pretty
low historically.
Speaker 1 (11:35):
So still cautious optimism at best there.
Speaker 2 (11:38):
Exactly.
Joel Berner is quoted pointingto that mix of factors holding
demand back Still high rates,high prices, maybe some worries
about trade wars impactingconfidence, just general
economic jitters.
Speaker 1 (11:51):
OK, you mentioned the lock-in effect being a major
reason.
Existing home inventory isstill tight despite those recent
gains.
Can you explain that a bit more?
Speaker 2 (12:00):
Yeah, this is a really crucial piece of the
puzzle right now.
It's probably the biggestsingle thing holding back the
supply of homes for sale.
Ok, think about it.
Millions and millions ofhomeowners either bought or
refinanced when mortgage rateswere at rock bottom.
We're talking 2%, 3%, maybe low4s.
Speaker 1 (12:16):
Right those amazing rates just a few years ago?
Speaker 2 (12:18):
Exactly so.
Now they're effectively lockedin, why would they sell their
home and give up that incrediblerate only to have to buy a new
place and take out a mortgage at, say, 6.5% or 7%?
Yeah, the payment differencewould be huge.
Speaker 1 (12:33):
Yeah, that math just doesn't work for most people
unless they absolutely have tomove.
Speaker 2 (12:37):
Precisely.
Rick Sharga is quoted in thearticle saying that for us to
see a really meaningful increasein the supply of existing homes
hitting the market enough tomake a real difference, rates
probably need to fall quite abit further, maybe down into the
low 5% range, potentially evenlower.
Speaker 1 (12:54):
So until then, a lot of potential sellers are just
staying put.
Speaker 2 (12:57):
Staying put.
That's the lock-in effect andit's a major inventory headwind.
Speaker 1 (13:00):
The article also touches on some bigger picture
things influencing the market,like government policies.
Speaker 2 (13:05):
It does yeah.
Speaker 1 (13:06):
Yeah.
Speaker 2 (13:09):
It neutrally references how certain policies
could impact things.
For instance, tariffs wementioned how those increase
building costs.
Immigration policies arementioned in the context of
potentially affecting theavailability of construction
labor, and there are discussionsnoted about using federal land
for development which could helpor hinder efforts to boost
overall housing supply.
Just factors to be aware of inthe background.
Speaker 1 (13:29):
And what about the builders themselves?
How are they feeling?
What's their sentiment like?
Speaker 2 (13:33):
Well, the main index tracking that, the NHB Wells
Fargo Housing Market Index.
It ticked up just a tiny bit inApril to a reading of 40.
Speaker 1 (13:42):
But wasn't 50 the important number there?
Speaker 2 (13:44):
Exactly Anything below 50 means more builders see
conditions as poor than seethem as good.
Exactly Anything below 50 meansmore builders see conditions as
poor than see them as good.
So while it kicked up slightly,sentiment is still negative
overall.
It hasn't actually been abovethat 50 mark since way back in
April 2024.
So, still pretty cautious ontheir end, very cautious.
Robert Dietz from NAHB connectsit back to that policy
(14:05):
uncertainty we mentioned andalso the direct hit from tariff
costs making it harder to buildhomes people can afford.
Speaker 1 (14:12):
And does the actual construction data back that up?
Are fewer homes being built?
Speaker 2 (14:16):
It seems so.
The Sentosa data showedsingle-family housing starts
that's when they actually beginconstruction.
They slumped prettysignificantly in March, down
over 14% from February andalmost 10% from the year before
March, down over 14% fromFebruary and almost 10% from the
year before.
Ooh yeah, completions were upslightly, but the starts number
is the key indicator for futuresupply and that signals a
slowdown which again doesn'thelp the overall inventory
(14:39):
problem.
Speaker 1 (14:39):
Okay, let's switch gears slightly.
Foreclosures With all theeconomic pressure and high costs
, is the article suggesting wemight see a wave of foreclosures
, adding inventory or causing?
Speaker 2 (14:50):
problems.
It looks at the data from AdamForeclosure.
Starts were up a bit in thefirst quarter of 2025, 14
percent compared to the previousquarter and 2 percent compared
to the year before.
Speaker 1 (15:00):
OK, and homes actually taken back by lenders
REOs.
Speaker 2 (15:03):
Those were up 8 percent from the prior quarter
but actually down 4 percent fromthe year before.
Speaker 1 (15:07):
So some increases quarter over quarter, but mixed
annually.
Does the article put this intoperspective?
Is it alarming?
Speaker 2 (15:14):
No, and this context is really, really important.
Rob Barber from Adam is quoted,emphasizing that these
foreclosure levels are still way, way below historical averages.
How far below?
Like 35% below the levels seenjust before the pandemic in 2019
.
And a massive 90% below thepeak we saw back in 2010 during
(15:34):
the last crisis 90% below thepeak.
Speaker 1 (15:37):
Okay, that's huge context.
Speaker 2 (15:38):
It is so.
Yes, the quarterly upticksuggests some homeowners are
definitely feeling the financialstrain, but it's absolutely
nowhere near the kind of volumethat would destabilize the
market like we saw in the past.
Speaker 1 (15:50):
And why is that?
What's preventing a bigger wave?
Speaker 2 (15:52):
This is where it gets really interesting and it
connects back to what we saidearlier.
It's homeowner equity.
There's just this massivebuffer.
Federal Reserve data showedhomeowners sitting on over $34.7
trillion in equity at the endof 2024.
Speaker 1 (16:07):
$34 trillion.
That number is just staggering.
Speaker 2 (16:09):
It really is, and it means a record percentage of
homes are considered equity rich.
That's where the mortgage owedis 50% or less of what the home
is actually worth.
Over 47% of homes withmortgages fell into that
category in late 2024.
Compare that to just 26.5%right before the pandemic hit in
early 2020.
Big jump.
So what does before thepandemic hit in early 2020.
Big jump.
Speaker 1 (16:30):
So what does all that equity do in terms of
foreclosures?
Speaker 2 (16:33):
Well, as Rick Sharge explains in the article, it
gives homeowners options if theyhit financial trouble.
Instead of just defaulting,they can potentially tap into
that equity through a loan orline of credit if needed.
Or, more commonly, they cansimply sell the house, pay off
the mortgage completely andlikely still walk away with a
significant profit.
Speaker 1 (16:53):
Ah, so they can sell before getting into foreclosure
trouble.
Speaker 2 (16:55):
Exactly that ability to sell solvently prevents the
kind of distressed sales andforeclosure wave that really
defined the 2008 downturn.
That equity cushion is afundamental difference this time
around.
Speaker 1 (17:06):
Okay.
So after looking at all thisthe slowing price growth, the
stubborn rates, the inventorydynamics, building headwinds,
low foreclosures thanks toequity we get to the big
question, the one probably onevery listener's mind if they're
thinking about moving Is 2025shaping up to be a good year to
actually buy a house?
Speaker 2 (17:22):
Yeah, the million-dollar question, right?
Or maybe the several hundredthousand-dollar question these
days.
Speaker 1 (17:26):
Ah, yeah, probably.
Speaker 2 (17:27):
Well, the experts quoted, like Orphid Devongi from
Zillow Home Loans and KeithGumminger again, they offer
pretty similar advice here.
They really stress that buyinga home is such a personal
decision.
It has to be based on yourfinances, your life situation,
your needs.
Speaker 1 (17:46):
Not just the market conditions your finances, your
life situation, your needs, notjust the market conditions.
Speaker 2 (17:48):
Right, and they both say pretty clearly that trying
to perfectly time the market,catching the absolute bottom for
prices or rates, is quotealmost impossible.
Speaker 1 (17:57):
So don't wait for the perfect moment.
That might never come.
Speaker 2 (18:01):
That seems to be the message they argue the best time
to buy is really when you finda home that fits your needs and,
crucially, that you cancomfortably afford based on your
budget right now.
Speaker 1 (18:11):
And the article suggested waiting could be risky
too.
Speaker 2 (18:14):
Yeah, the idea being that if you wait, hoping for
prices or rates to fallsignificantly, the goalposts
might just keep moving furtheraway.
Like maybe prices keep creepingup, even slowly, so the down
payment even gets bigger, ormaybe rates dip but prices jump.
It's unpredictable.
Speaker 1 (18:28):
And there's the benefit of just getting in the
market right.
The article mentioned thehousing ladder.
Speaker 2 (18:33):
Exactly Getting on that ladder allows you to start
building your own equity overtime, building your net worth.
That's a huge factor inlong-term financial well-being.
So the decision becomes lessabout predicting market peaks
and valleys and more about yourpersonal readiness and long-term
financial goals.
Speaker 1 (18:49):
OK.
So the Forbes Advisor articlewraps up with some practical
tips for people trying tonavigate this tricky market,
whether buying or selling.
What are the key takeawaysthere?
Speaker 2 (19:00):
Yeah, some good grounded advice For buyers.
Hannah Jones from Realtorcomand Scott Bridges from PennyMac
suggest a few things Like what.
First, really know your monthlypayment budget inside and out.
Focus on that, maybe even morethan the total price tag.
Second, be flexible, maybe onthe exact size of the house or
the specific neighborhood.
Third, watch your local marketlike a hawk.
(19:22):
Conditions can vary block byblock sometimes.
Speaker 1 (19:24):
Oh, okay, stay local.
Speaker 2 (19:26):
Definitely Also try not to get too discouraged by
how tough it is and maybe mostimportantly, get pre-approved
for a mortgage early, Like rightat the start.
Speaker 1 (19:35):
Why is that so crucial?
Speaker 2 (19:36):
Because then you know exactly what you can
realistically afford and itmakes any offer you eventually
make much stronger in theseller's eyes.
Shows you're serious and ready.
Speaker 1 (19:44):
Makes sense.
What about tips for sellers?
Gary Ashton from RemaxAdvantage had some thoughts.
Speaker 2 (19:50):
He did.
First do your homework oncomparable prices what have
similar homes nearby actuallysold for recently?
Then price competitively fromthe start.
You need to understand if yourspecific type of property in
your price range is facing moreof a buyer's market right now.
Speaker 1 (20:06):
So be realistic about price.
Speaker 2 (20:08):
Very realistic.
Also, make your home lookabsolutely fantastic, especially
online.
That online curb appeal iseverything now.
First impressions count bigtime.
He also stresses working with agood local agent who really
knows the current nuances.
And finally, be proactive.
If there are obvious repairsneeded, fix them before you list
.
Don't give buyers easy reasonsto walk away or lowball you.
Speaker 1 (20:31):
Good, practical stuff , okay, so let's try to pull
this all together.
What's the big picture takeawayfrom this deep dive into the
Forbes advisor piece on the 2025market?
It sounds like the consensusisn't predicting that 2008-style
crash some people fear.
Speaker 2 (20:46):
No, seems unlikely, based on this source.
Speaker 1 (20:48):
But it is predicting a continuation of these really
significant affordabilityproblems for a lot of people.
Speaker 2 (20:54):
That seems to be the core tension.
Yes, yeah, we've seen all thesecomplex forces interacting
Price growth slowing but notreally falling, those mortgage
rates staying painfully high,inventory slowly ticking up but
still held back by that lock-ineffect.
Speaker 1 (21:08):
Right.
Speaker 2 (21:08):
New construction facing cost hurdles and
foreclosures staying low, mainlybecause homeowners have so much
equity.
It's just a market defined bythese competing pressures.
Speaker 1 (21:17):
Which brings us back to that central point.
And maybe a final question foryou, the listener, to think
about.
Given that the expertsthemselves say timing the market
is basically impossible andthat buying or selling is so
personal, how much weight shouldyou really put on forecasts
like these, versus just focusingsquarely on your own situation,
your job stability, yoursavings, your family needs, your
(21:38):
long term goals?
Speaker 2 (21:39):
It's really about using this information to
understand the landscape, theheadwinds, the potential
opportunities, but thengrounding your final decision on
what's truly right for youpersonally and financially.
Speaker 1 (21:51):
Yeah, well said.
We've definitely covered a lotof ground today from that Forbes
advisor article.
Hopefully it helps you feelbetter informed and more
confident navigating all thetalk about the 2025 housing
market.
Speaker 2 (22:02):
And before we wrap up , just one final reminder about
our sponsor, Flowers andAssociates Property Rentals.
They specialize in providingthat vital special needs housing
.
That's right.
Speaker 1 (22:10):
And if you're interested in their model, maybe
exploring how creating passiveincome streams through that
specific type of housing works,you can reach out to them.
The number again is901-621-3544.
Speaker 2 (22:23):
Or find them online at flowersandassociatesnet.
And don't forget RobertFlowers' book the Joy of Helping
Others Creating Passive IncomeStreams Through Special Needs
Housing.
Speaker 1 (22:33):
Available on Amazon.
Definitely worth a read if thatarea interests you.
Speaker 2 (22:36):
Okay, that does it for our deep dive today.
We really hope this was helpful.
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