March 23, 2025 • 13 mins
The real estate market has hit its lowest point since 1995, with existing home sales dipping to around 4 million in 2024, creating uncertainty for potential buyers and sellers about what to expect in the coming year. We analyze insights from real estate broker Stephanie Birkin to help you understand mortgage rate trends, inventory challenges, and practical strategies for navigating the 2025 housing market with confidence.
• Mortgage rates expected to remain in the high 6% range with some easing in 2025, but don't anticipate a return to sub-4% rates
• Watch the 10-year Treasury yield, not just Fed announcements, to better predict mortgage rate movements
• Limited inventory persists due to homeowners locked into low rates, creating a real estate standoff with gradual improvement expected
• Buyers should complete pre-approval now, explore down payment assistance programs, and clearly define needs versus wants
• Demographic shifts show more cash buyers, older first-time buyers (median age 38), and more single female buyers entering the market
• Sellers should list in late February/early March and follow the PLANS framework: Price strategically, Light up your home, Ask an agent, Negotiate creatively, Stage for success
Visit flowersandassociatesboking.com/book to learn about our sponsor and check out Robert Flowers' latest book, "From Setback to Comeback: Finding your Resiliency in Tough Times."
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:00):
So you know, existing home sales in 2024, they dipped
, you know, down to around fourmillion.
Speaker 2 (00:07):
Yeah.
Speaker 1 (00:09):
And that's the lowest we've seen since 1995.
Speaker 2 (00:12):
Really, Since 1995?
.
Speaker 1 (00:13):
Since 1995.
Right, so if you're out therelistening and you're thinking
about making a move, you knowyou're probably like what the
heck does this mean for me?
Speaker 2 (00:21):
Yeah, what does this mean?
Going forward.
Speaker 1 (00:23):
Exactly, and that's what we're going to be diving
into today, right?
So we took a look at a recentToday Show segment and Stephanie
Birkin, who's a real estatebroker Okay, she was on there
talking about you know herexperience in this current
market, and so we wanted to kindof take a deep dive into that.
Yeah, try to get some clarityand give you a clearer picture
(00:44):
about what we might expect in2025, you know, for the real
estate market.
Speaker 2 (00:48):
Right, because I think a lot of people are
wondering that.
Speaker 1 (00:50):
Yeah, what can buyers and sellers really anticipate?
What about mortgage rates,inventory and just some
practical advice that you canuse?
Speaker 2 (00:58):
Absolutely.
Speaker 1 (00:59):
Right.
So we want to move beyond thespeculation.
Speaker 2 (01:01):
Yeah.
Speaker 1 (01:01):
Give you some solid insights.
Help you feel more informedabout what's ahead.
Speaker 2 (01:05):
Absolutely.
Speaker 1 (01:06):
So, before we get into the details, though, I do
wanna mention our sponsors.
So today's Deep Dive issupported in part by Flowers and
Associates Property Rentals.
Speaker 2 (01:17):
Great company.
Speaker 1 (01:18):
They actually focus on housing solutions for
individuals with special needs.
Speaker 2 (01:24):
Oh, very good, that's an important area.
Speaker 1 (01:25):
Really important area and the company was actually
founded by Robert Flowers.
Speaker 2 (01:30):
Oh, Robert Flowers.
Speaker 1 (01:31):
Yeah, longtime listeners will recognize that
name.
Speaker 2 (01:35):
Yes, yes, he's been on the show before.
Speaker 1 (01:37):
He's been on some previous deep dives with us.
Speaker 2 (01:39):
Yeah, he's great.
Speaker 1 (01:40):
And Robert is also a respected author in the real
estate field.
Speaker 2 (01:43):
Yes, he is.
Speaker 1 (01:44):
He's written several great books, including his
latest book, from Setback toComeback Finding your Resiliency
in Tough Times.
Speaker 2 (01:51):
Oh, I've heard about that one.
I haven't gotten to read it yet, though.
Speaker 1 (01:54):
Yeah, it's fantastic.
You know, it offers a lot ofvaluable perspectives on things.
Speaker 2 (02:00):
I'm going to check it out.
Speaker 1 (02:01):
Yeah, I recommend it.
I'm going to check it out.
Yeah, I recommend it.
So you can find Robert's bookson Amazon or you can learn more
about Flowers and Associates atflowersandassociatesbookingcom.
Forward slash book.
Okay, and so we appreciatetheir support in bringing you
this deep dive.
Absolutely so let's jump intoit.
Speaker 2 (02:15):
Okay, let's do it.
Speaker 1 (02:16):
So first up is, you know, this topic that I think is
on a lot of people's mindsright now Uh-huh, mortgage rates
.
Yes, I mean, it's been a rollercoaster.
Speaker 2 (02:25):
It has.
Speaker 1 (02:26):
The report that that Stephanie referenced this
morning puts them at around sixpoint eight, seven five percent.
Speaker 2 (02:33):
OK.
Speaker 1 (02:34):
In the high sixes.
All right.
We even touched seven percentrecently.
Speaker 2 (02:38):
We did, I did.
Speaker 1 (02:39):
So I think you know a lot of people out there like
are we going to get back tothose sub four percent interest
rates?
Speaker 2 (02:45):
Right, those were the days.
Speaker 1 (02:46):
Right.
So what did Stephanie have tosay about that?
What's the realistic outlook?
Speaker 2 (02:50):
Well, she was pretty straight up, you know she's like
look, expect a little bit ofeasing, you know going into
2025.
, but temper your expectations,ok.
She said you know, plan as ifthey're going to stay in the
high sixes and then you know ifthey go lower, that's a bonus,
right.
As for you know those crazy lowrates that we were seeing
(03:11):
before, she doesn't see thathappening anytime soon.
Speaker 1 (03:15):
Yeah, it's tough to think about that.
Speaker 2 (03:16):
It is.
Speaker 1 (03:17):
But you know, this brings up a point.
I think that's really important.
Okay, for people to understandabout the market.
Speaker 2 (03:23):
Uh-huh important.
Speaker 1 (03:24):
Okay For people to understand about the market.
You know, I think there's oftenthis assumption that mortgage
rates and the Federal Reserverate cuts are kind of moving in
lockstep Right.
You know, you see headlines theFed's lowering rates and people
assume, okay, mortgage ratesare going to drop too.
Speaker 2 (03:36):
But Not necessarily.
Speaker 1 (03:37):
It's not that simple, is it?
Speaker 2 (03:38):
No, no, it's not that direct of a connection.
Speaker 1 (03:40):
Right.
Speaker 2 (03:41):
You know you have to look at the 10 year treasury
yield.
That's right, that's kind ofthe key.
Speaker 1 (03:45):
That's a key factor and Stephanie really highlighted
that.
Yeah.
Speaker 2 (03:48):
It's like the return that investors expect on these
long term government bonds, youknow.
Speaker 1 (03:54):
Right.
They're seen as relatively safeand because mortgages are also
long term investments, theirrates tend to follow.
You know the trends of thisbenchmark.
So, yeah, the Fed's actions.
They have broader economicimpacts, for sure.
But, their direct effect onyour mortgage rate is more
indirect.
Speaker 2 (04:14):
It's more of a ripple effect than a direct hit.
That's a good way to put itRight.
Speaker 1 (04:18):
So takeaway for you listening is pay attention to
that 10-year treasury yield.
Speaker 2 (04:22):
Absolutely, if you really want to have a better
grasp of where those rates areheaded.
Speaker 1 (04:26):
Yeah, it's not just about the Fed announcement.
Speaker 2 (04:28):
No, it's bigger than that Okay.
Speaker 1 (04:29):
so let's shift gears a little bit.
All right and talk about thesituation with housing inventory
.
Okay, we know it's been tight.
Speaker 2 (04:37):
Yeah.
Speaker 1 (04:37):
But you know what are the underlying reasons for that
?
Speaker 2 (04:45):
And what does it mean for whether it's a better time
to buy or sell right now?
Well, stephanie, she pointedout, the big thing is you've got
a lot of existing homeownersthat are locked into these super
low, sub 4 percent mortgagerates.
Speaker 1 (04:54):
Right, they're sitting pretty.
Speaker 2 (04:55):
Oh yeah.
And they're thinking why wouldI sell now and have to buy
something new at these muchhigher rates?
Speaker 1 (05:01):
Right, you'd be giving up that incredible rate.
Speaker 2 (05:03):
Exactly, and that's keeping a lot of those houses
off the market.
Speaker 1 (05:06):
Makes sense, and at the same time, though, you've
got.
Speaker 2 (05:08):
You've got all these buyers out there.
Pent up demand who have beenstruggling with affordability.
Speaker 1 (05:13):
Yeah, you know.
Speaker 2 (05:14):
Right, and they're ready to jump in, but there just
isn't much to choose from.
Speaker 1 (05:19):
It's almost like a standoff then, isn't it?
Speaker 2 (05:31):
It is.
It's like a real estatestalemate.
So what's the prediction forhow this might evolve in 2025?
Are we going to see a bunch ofnew listings hit the market?
I don't think she sees that,you know, like a sudden flood of
new listings.
Ok, more like a gradual, steadyimprovement.
Speaker 1 (05:38):
OK.
Speaker 2 (05:38):
You know, as rates maybe ease up a little bit even
if it's not a huge drop Rightand as new construction projects
get finished and add to thesupply, we should see things get
a little more balanced andstable.
Okay, but no drastic overnightshifts.
So no, housing market explosionno not that we can do More,
(05:58):
like a slow and steady wins therace kind of thing, you know,
those incremental improvements,like she said.
That's the trend to watch.
Okay, the good news is shethinks the hardest part is
behind us.
Speaker 1 (06:06):
Okay.
Speaker 2 (06:07):
We've turned the corner.
Speaker 1 (06:08):
You've turned the corner Good.
Speaker 2 (06:09):
Yeah, heading toward more stability.
Speaker 1 (06:11):
All right.
So for those of you listening,you know, keep in mind that
those existing homeowner rates,you know that's a big factor A
huge factor.
And it's influencing how manyhomes are actually out there.
Speaker 2 (06:21):
Yes.
Speaker 1 (06:22):
And the market might not, you know, do a complete 180
overnight.
Speaker 2 (06:26):
Right.
Speaker 1 (06:26):
But it does seem like we're moving in a more positive
direction.
Speaker 2 (06:30):
That's the hope.
Speaker 1 (06:30):
So, if you're thinking about buying in 2025,
what did Stephanie have to sayabout that?
Like, what steps can you betaking now to prepare yourself?
Speaker 2 (06:39):
OK.
So her number one piece ofadvice, which I think is just so
smart, is get a really clearpicture of your finances right
now, Like go through the wholepre-approval process as if you
were actually applying for amortgage today.
Speaker 1 (06:53):
Wow, so really go through the whole process.
Speaker 2 (06:55):
The whole thing that way.
You know you got to get allyour financial documents
together.
You know figure out which yourliquid assets are.
You know how much cash do youhave on hand.
What's your credit scorelooking like?
Speaker 1 (07:05):
Right, it's like doing your homework before the
test.
Speaker 2 (07:07):
Exactly, and you know , once you do that, you'll have
a much more realisticunderstanding of what you can
actually afford.
Speaker 1 (07:13):
That makes a lot of sense, right?
So what other recommendationsdoes she have for potential
buyers?
Speaker 2 (07:19):
So she talked about this thing that I think people
don't always think about, whichis assistance programs.
Speaker 1 (07:25):
Oh OK.
Speaker 2 (07:26):
There are programs out there that can actually help
with down payments and closingcosts.
Speaker 1 (07:30):
I didn't realize that .
Speaker 2 (07:31):
Yeah, and she also said it's super important to
personalize your home search.
Speaker 1 (07:35):
Okay, what does that mean?
Speaker 2 (07:37):
Really think about you know what are your needs
versus your wants.
Okay, like what do youabsolutely have to have in a
home and what are things thatwould be nice but aren't deal
breakers?
Speaker 1 (07:48):
Right.
Speaker 2 (07:49):
That'll help you narrow down your search and make
those decisions faster when youdo find something you like.
Speaker 1 (07:53):
Okay, and of course you know staying informed about
your local market.
Speaker 2 (07:56):
Absolutely Got to know what's going on in your
area.
Speaker 1 (07:58):
Right, that's always important and you know thinking
about our younger listeners.
You know millennials and Gen Z.
Speaker 2 (08:04):
Oh yeah, she had a great message for them.
Speaker 1 (08:06):
Yeah, what was that?
Speaker 2 (08:07):
She's like it's never too early to start saving.
Speaker 1 (08:09):
OK.
Speaker 2 (08:10):
Even if it's a small amount from each paycheck.
Speaker 1 (08:12):
Right.
Speaker 2 (08:13):
Over time that really adds up.
Yeah, definitely makes adifference and she pointed out
some shifts in buyerdemographics.
Speaker 1 (08:20):
Too right she did.
Speaker 2 (08:21):
What were those?
So she said, we're seeing morecash buyers these days.
Speaker 1 (08:25):
Interesting.
Speaker 2 (08:25):
Yeah, and the median age of first time buyers is up a
bit.
It's run 38 now.
Speaker 1 (08:30):
Oh, so people are waiting longer to buy.
Speaker 2 (08:32):
Seems like it, and we're also seeing a rise in
single female buyers.
Speaker 1 (08:36):
Really.
Speaker 2 (08:37):
Yeah, they're actually outnumbering single
male buyers in a lot of markets.
Speaker 1 (08:40):
Wow, that's fascinating.
I wonder if that's tied tobroader economic trends.
Speaker 2 (08:46):
It.
Speaker 1 (08:48):
Yeah, okay.
So if we're in a market wherethere's still a little bit of
competition, what did she haveto say about how buyers can make
their offers stand out?
Speaker 2 (08:58):
So she talked about this idea of warming up your
offer.
Speaker 1 (09:00):
Okay, warming up your offer.
Speaker 2 (09:02):
Yeah, like buying a home.
It's not just a financialtransaction.
It's often really personal forsellers.
Speaker 1 (09:07):
Yeah, their home.
Speaker 2 (09:08):
Exactly so she's like find ways to add a personal
touch.
Okay, you know, somethinggenuine and appropriate that
resonates with the seller beyondjust the price.
Speaker 1 (09:20):
Like what.
Speaker 2 (09:21):
Well, you know, it depends on the situation, right,
but maybe a letter talkingabout what you love about the
house.
Speaker 1 (09:27):
Okay.
Speaker 2 (09:27):
Or how you can see your family living there.
Speaker 1 (09:29):
Yeah.
Speaker 2 (09:29):
Something that shows you're not just another buyer.
Speaker 1 (09:31):
Right, you connect with it.
Speaker 2 (09:32):
Exactly.
Speaker 1 (09:32):
Okay, so for all you buyers out there thinking about
2025.
Speaker 2 (09:37):
Here's the takeaway.
Speaker 1 (09:37):
Get your finances in order.
Investigate those assistanceprograms.
Figure out your needs versusyour wants.
Speaker 2 (09:44):
Keep learning about your local market.
Speaker 1 (09:46):
Yes, make saving a priority and think about how you
can personalize your offer.
Speaker 2 (09:51):
Yeah, great advice.
Speaker 1 (09:52):
So now let's switch gears and talk about the sellers
.
Okay, you know.
What insights did Stephanieshare for those who might be
thinking about selling in 2025?
Speaker 2 (10:02):
All right.
So for sellers, timing is key.
Okay, she actually recommendslisting your property in late
February or early March.
Speaker 1 (10:11):
Why that time frame?
Speaker 2 (10:13):
So you're right, there at the start of the spring
buying season, okay, and theweather's usually getting better
, right?
So more buyers are out lookingat homes.
Speaker 1 (10:20):
Makes sense.
Speaker 2 (10:21):
But here's the thing she's like you got to be
prepared.
Okay, Start getting yourproperty ready now.
Speaker 1 (10:27):
Don't wait till the last minute.
No procrastination allowed.
Speaker 2 (10:31):
So what kind of advice did she have about
getting your home ready to sell?
Speaker 1 (10:35):
Okay, so she had this great acronym that I love it's
PLANS.
Plans Okay so the P stands forprice.
Strategically Okay, don't getgreedy, don't overprice your
home.
Speaker 2 (10:44):
Right, even if you think you can get away with it.
Speaker 1 (10:46):
Right.
Speaker 2 (10:46):
Okay, what's L?
Speaker 1 (10:48):
L is for light up the house.
Speaker 2 (10:50):
Literally yeah.
Increase the wattage of yourlight bulbs.
Make sure every room is brightand welcoming it makes a big
difference.
Speaker 1 (10:56):
It does, it does.
What about A?
Speaker 2 (10:58):
A is for ask an agent .
Speaker 1 (10:59):
Okay.
Speaker 2 (11:00):
You know work with a good, experienced real estate
agent.
Speaker 1 (11:02):
Someone you trust.
Speaker 2 (11:03):
Uh-huh, someone who knows your market.
Speaker 1 (11:06):
What about N?
Speaker 2 (11:07):
N is for negotiate creatively.
Speaker 1 (11:10):
Okay.
Speaker 2 (11:11):
Be open to different strategies, you know, beyond
just the final sale price.
Speaker 1 (11:16):
Right, think outside the box, exactly and finally S.
Speaker 2 (11:19):
S is for stage for success.
Speaker 1 (11:22):
Staging.
We hear a lot about staging.
Does it really make that muchof a difference?
Speaker 2 (11:26):
Oh, she says, it makes huge difference.
Speaker 1 (11:28):
Huge difference Okay.
Speaker 2 (11:29):
You know, presenting your home in the best possible
light it really influences howbuyers see it and what they're
willing to offer.
Speaker 1 (11:35):
So make it look good.
Speaker 2 (11:36):
Make it shine.
Speaker 1 (11:37):
Okay, so if you're thinking about selling in 2025.
Speaker 2 (11:41):
Late February, early March.
Speaker 1 (11:43):
Late February, early March, and start working on your
plans now.
Speaker 2 (11:46):
Get those plans in motion.
Speaker 1 (11:48):
Price strategically, light it up.
Ask an agent negotiatecreatively.
Stage for success.
Speaker 2 (11:53):
Great advice.
Speaker 1 (11:54):
So we've covered a lot today.
Speaker 2 (11:55):
We have.
Speaker 1 (11:57):
What are the big takeaways you think our
listeners should really rememberabout the 2025 real estate
market, based on what Stephanieshared.
Speaker 2 (12:04):
So the key things to keep in mind are mortgage rates.
We're expecting them to ease abit, but don't expect them to go
back to those record lows.
Ok, it's safer to plan forthose high sixes.
Speaker 1 (12:16):
High sixes.
Speaker 2 (12:17):
Yeah, Then you know, if they go lower, you're
pleasantly surprised.
Speaker 1 (12:20):
That's right.
Speaker 2 (12:21):
As for inventory, you know it's still a little tight
because of those homeowners thatare locked into those lower
rates, but we're seeing signs ofa gradual shift towards a more
balanced market.
Speaker 1 (12:31):
Okay, slow and steady .
Speaker 2 (12:32):
Exactly.
And for buyers, you know, beingfinancially prepared, exploring
those assistance options,knowing your needs, those are
all super important.
Speaker 1 (12:41):
And for seller.
Speaker 2 (12:41):
Strategic timing, you know, late winter, early spring
, and then that carefulpreparation using the Planet
Tech framework that's going tobe key.
Speaker 1 (12:49):
All right, so really good advice for both sides.
Speaker 2 (12:52):
Yeah, lots to think about.
Speaker 1 (12:53):
So, as you process all of this, you know you're
thinking about these trends andmortgage rates and inventory
Right and the advice for bothbuyers and sellers.
Here's a final thought for you.
Speaker 2 (13:07):
Okay, you know what's the most empowering step you
feel like you can take, based onthis information regarding your
housing goals this year, that'sa great question.
Speaker 1 (13:11):
Are you actively planning to buy?
Are you thinking about sellingor do you just want to?
You know, understand the realestate landscape a little better
?
Whatever your goal is, take amoment and think about that.
One actionable step you cantake right now.
Speaker 2 (13:27):
Yeah, step you can take today.
Speaker 1 (13:29):
To move forward with confidence and a clear plan.
Speaker 2 (13:32):
With knowledge is power right.
Speaker 1 (13:33):
That's right, that's right and that's what we try to
do here on the Deep Dive.
Speaker 2 (13:37):
Absolutely Give you the information you need to make
the best decisions.
Speaker 1 (13:41):
So thanks for joining us.
Speaker 2 (13:42):
And happy house hunting.
Speaker 1 (13:43):
Or selling.
Speaker 2 (13:44):
Or just being informed.
Speaker 1 (13:46):
All right, we'll see you next time on the Deep Dive.
Speaker 2 (13:48):
Take care.
So you know, existing home sales in 2024, they dipped
, you know, down to around fourmillion.
Speaker 2 (00:07):
Yeah.
Speaker 1 (00:09):
And that's the lowest we've seen since 1995.
Speaker 2 (00:12):
Really, Since 1995?
.
Speaker 1 (00:13):
Since 1995.
Right, so if you're out therelistening and you're thinking
about making a move, you knowyou're probably like what the
heck does this mean for me?
Speaker 2 (00:21):
Yeah, what does this mean?
Going forward.
Speaker 1 (00:23):
Exactly, and that's what we're going to be diving
into today, right?
So we took a look at a recentToday Show segment and Stephanie
Birkin, who's a real estatebroker Okay, she was on there
talking about you know herexperience in this current
market, and so we wanted to kindof take a deep dive into that.
Yeah, try to get some clarityand give you a clearer picture
(00:44):
about what we might expect in2025, you know, for the real
estate market.
Speaker 2 (00:48):
Right, because I think a lot of people are
wondering that.
Speaker 1 (00:50):
Yeah, what can buyers and sellers really anticipate?
What about mortgage rates,inventory and just some
practical advice that you canuse?
Speaker 2 (00:58):
Absolutely.
Speaker 1 (00:59):
Right.
So we want to move beyond thespeculation.
Speaker 2 (01:01):
Yeah.
Speaker 1 (01:01):
Give you some solid insights.
Help you feel more informedabout what's ahead.
Speaker 2 (01:05):
Absolutely.
Speaker 1 (01:06):
So, before we get into the details, though, I do
wanna mention our sponsors.
So today's Deep Dive issupported in part by Flowers and
Associates Property Rentals.
Speaker 2 (01:17):
Great company.
Speaker 1 (01:18):
They actually focus on housing solutions for
individuals with special needs.
Speaker 2 (01:24):
Oh, very good, that's an important area.
Speaker 1 (01:25):
Really important area and the company was actually
founded by Robert Flowers.
Speaker 2 (01:30):
Oh, Robert Flowers.
Speaker 1 (01:31):
Yeah, longtime listeners will recognize that
name.
Speaker 2 (01:35):
Yes, yes, he's been on the show before.
Speaker 1 (01:37):
He's been on some previous deep dives with us.
Speaker 2 (01:39):
Yeah, he's great.
Speaker 1 (01:40):
And Robert is also a respected author in the real
estate field.
Speaker 2 (01:43):
Yes, he is.
Speaker 1 (01:44):
He's written several great books, including his
latest book, from Setback toComeback Finding your Resiliency
in Tough Times.
Speaker 2 (01:51):
Oh, I've heard about that one.
I haven't gotten to read it yet, though.
Speaker 1 (01:54):
Yeah, it's fantastic.
You know, it offers a lot ofvaluable perspectives on things.
Speaker 2 (02:00):
I'm going to check it out.
Speaker 1 (02:01):
Yeah, I recommend it.
I'm going to check it out.
Yeah, I recommend it.
So you can find Robert's bookson Amazon or you can learn more
about Flowers and Associates atflowersandassociatesbookingcom.
Forward slash book.
Okay, and so we appreciatetheir support in bringing you
this deep dive.
Absolutely so let's jump intoit.
Speaker 2 (02:15):
Okay, let's do it.
Speaker 1 (02:16):
So first up is, you know, this topic that I think is
on a lot of people's mindsright now Uh-huh, mortgage rates
.
Yes, I mean, it's been a rollercoaster.
Speaker 2 (02:25):
It has.
Speaker 1 (02:26):
The report that that Stephanie referenced this
morning puts them at around sixpoint eight, seven five percent.
Speaker 2 (02:33):
OK.
Speaker 1 (02:34):
In the high sixes.
All right.
We even touched seven percentrecently.
Speaker 2 (02:38):
We did, I did.
Speaker 1 (02:39):
So I think you know a lot of people out there like
are we going to get back tothose sub four percent interest
rates?
Speaker 2 (02:45):
Right, those were the days.
Speaker 1 (02:46):
Right.
So what did Stephanie have tosay about that?
What's the realistic outlook?
Speaker 2 (02:50):
Well, she was pretty straight up, you know she's like
look, expect a little bit ofeasing, you know going into
2025.
, but temper your expectations,ok.
She said you know, plan as ifthey're going to stay in the
high sixes and then you know ifthey go lower, that's a bonus,
right.
As for you know those crazy lowrates that we were seeing
(03:11):
before, she doesn't see thathappening anytime soon.
Speaker 1 (03:15):
Yeah, it's tough to think about that.
Speaker 2 (03:16):
It is.
Speaker 1 (03:17):
But you know, this brings up a point.
I think that's really important.
Okay, for people to understandabout the market.
Speaker 2 (03:23):
Uh-huh important.
Speaker 1 (03:24):
Okay For people to understand about the market.
You know, I think there's oftenthis assumption that mortgage
rates and the Federal Reserverate cuts are kind of moving in
lockstep Right.
You know, you see headlines theFed's lowering rates and people
assume, okay, mortgage ratesare going to drop too.
Speaker 2 (03:36):
But Not necessarily.
Speaker 1 (03:37):
It's not that simple, is it?
Speaker 2 (03:38):
No, no, it's not that direct of a connection.
Speaker 1 (03:40):
Right.
Speaker 2 (03:41):
You know you have to look at the 10 year treasury
yield.
That's right, that's kind ofthe key.
Speaker 1 (03:45):
That's a key factor and Stephanie really highlighted
that.
Yeah.
Speaker 2 (03:48):
It's like the return that investors expect on these
long term government bonds, youknow.
Speaker 1 (03:54):
Right.
They're seen as relatively safeand because mortgages are also
long term investments, theirrates tend to follow.
You know the trends of thisbenchmark.
So, yeah, the Fed's actions.
They have broader economicimpacts, for sure.
But, their direct effect onyour mortgage rate is more
indirect.
Speaker 2 (04:14):
It's more of a ripple effect than a direct hit.
That's a good way to put itRight.
Speaker 1 (04:18):
So takeaway for you listening is pay attention to
that 10-year treasury yield.
Speaker 2 (04:22):
Absolutely, if you really want to have a better
grasp of where those rates areheaded.
Speaker 1 (04:26):
Yeah, it's not just about the Fed announcement.
Speaker 2 (04:28):
No, it's bigger than that Okay.
Speaker 1 (04:29):
so let's shift gears a little bit.
All right and talk about thesituation with housing inventory
.
Okay, we know it's been tight.
Speaker 2 (04:37):
Yeah.
Speaker 1 (04:37):
But you know what are the underlying reasons for that
?
Speaker 2 (04:45):
And what does it mean for whether it's a better time
to buy or sell right now?
Well, stephanie, she pointedout, the big thing is you've got
a lot of existing homeownersthat are locked into these super
low, sub 4 percent mortgagerates.
Speaker 1 (04:54):
Right, they're sitting pretty.
Speaker 2 (04:55):
Oh yeah.
And they're thinking why wouldI sell now and have to buy
something new at these muchhigher rates?
Speaker 1 (05:01):
Right, you'd be giving up that incredible rate.
Speaker 2 (05:03):
Exactly, and that's keeping a lot of those houses
off the market.
Speaker 1 (05:06):
Makes sense, and at the same time, though, you've
got.
Speaker 2 (05:08):
You've got all these buyers out there.
Pent up demand who have beenstruggling with affordability.
Speaker 1 (05:13):
Yeah, you know.
Speaker 2 (05:14):
Right, and they're ready to jump in, but there just
isn't much to choose from.
Speaker 1 (05:19):
It's almost like a standoff then, isn't it?
Speaker 2 (05:31):
It is.
It's like a real estatestalemate.
So what's the prediction forhow this might evolve in 2025?
Are we going to see a bunch ofnew listings hit the market?
I don't think she sees that,you know, like a sudden flood of
new listings.
Ok, more like a gradual, steadyimprovement.
Speaker 1 (05:38):
OK.
Speaker 2 (05:38):
You know, as rates maybe ease up a little bit even
if it's not a huge drop Rightand as new construction projects
get finished and add to thesupply, we should see things get
a little more balanced andstable.
Okay, but no drastic overnightshifts.
So no, housing market explosionno not that we can do More,
(05:58):
like a slow and steady wins therace kind of thing, you know,
those incremental improvements,like she said.
That's the trend to watch.
Okay, the good news is shethinks the hardest part is
behind us.
Speaker 1 (06:06):
Okay.
Speaker 2 (06:07):
We've turned the corner.
Speaker 1 (06:08):
You've turned the corner Good.
Speaker 2 (06:09):
Yeah, heading toward more stability.
Speaker 1 (06:11):
All right.
So for those of you listening,you know, keep in mind that
those existing homeowner rates,you know that's a big factor A
huge factor.
And it's influencing how manyhomes are actually out there.
Speaker 2 (06:21):
Yes.
Speaker 1 (06:22):
And the market might not, you know, do a complete 180
overnight.
Speaker 2 (06:26):
Right.
Speaker 1 (06:26):
But it does seem like we're moving in a more positive
direction.
Speaker 2 (06:30):
That's the hope.
Speaker 1 (06:30):
So, if you're thinking about buying in 2025,
what did Stephanie have to sayabout that?
Like, what steps can you betaking now to prepare yourself?
Speaker 2 (06:39):
OK.
So her number one piece ofadvice, which I think is just so
smart, is get a really clearpicture of your finances right
now, Like go through the wholepre-approval process as if you
were actually applying for amortgage today.
Speaker 1 (06:53):
Wow, so really go through the whole process.
Speaker 2 (06:55):
The whole thing that way.
You know you got to get allyour financial documents
together.
You know figure out which yourliquid assets are.
You know how much cash do youhave on hand.
What's your credit scorelooking like?
Speaker 1 (07:05):
Right, it's like doing your homework before the
test.
Speaker 2 (07:07):
Exactly, and you know , once you do that, you'll have
a much more realisticunderstanding of what you can
actually afford.
Speaker 1 (07:13):
That makes a lot of sense, right?
So what other recommendationsdoes she have for potential
buyers?
Speaker 2 (07:19):
So she talked about this thing that I think people
don't always think about, whichis assistance programs.
Speaker 1 (07:25):
Oh OK.
Speaker 2 (07:26):
There are programs out there that can actually help
with down payments and closingcosts.
Speaker 1 (07:30):
I didn't realize that .
Speaker 2 (07:31):
Yeah, and she also said it's super important to
personalize your home search.
Speaker 1 (07:35):
Okay, what does that mean?
Speaker 2 (07:37):
Really think about you know what are your needs
versus your wants.
Okay, like what do youabsolutely have to have in a
home and what are things thatwould be nice but aren't deal
breakers?
Speaker 1 (07:48):
Right.
Speaker 2 (07:49):
That'll help you narrow down your search and make
those decisions faster when youdo find something you like.
Speaker 1 (07:53):
Okay, and of course you know staying informed about
your local market.
Speaker 2 (07:56):
Absolutely Got to know what's going on in your
area.
Speaker 1 (07:58):
Right, that's always important and you know thinking
about our younger listeners.
You know millennials and Gen Z.
Speaker 2 (08:04):
Oh yeah, she had a great message for them.
Speaker 1 (08:06):
Yeah, what was that?
Speaker 2 (08:07):
She's like it's never too early to start saving.
Speaker 1 (08:09):
OK.
Speaker 2 (08:10):
Even if it's a small amount from each paycheck.
Speaker 1 (08:12):
Right.
Speaker 2 (08:13):
Over time that really adds up.
Yeah, definitely makes adifference and she pointed out
some shifts in buyerdemographics.
Speaker 1 (08:20):
Too right she did.
Speaker 2 (08:21):
What were those?
So she said, we're seeing morecash buyers these days.
Speaker 1 (08:25):
Interesting.
Speaker 2 (08:25):
Yeah, and the median age of first time buyers is up a
bit.
It's run 38 now.
Speaker 1 (08:30):
Oh, so people are waiting longer to buy.
Speaker 2 (08:32):
Seems like it, and we're also seeing a rise in
single female buyers.
Speaker 1 (08:36):
Really.
Speaker 2 (08:37):
Yeah, they're actually outnumbering single
male buyers in a lot of markets.
Speaker 1 (08:40):
Wow, that's fascinating.
I wonder if that's tied tobroader economic trends.
Speaker 2 (08:46):
It.
Speaker 1 (08:48):
Yeah, okay.
So if we're in a market wherethere's still a little bit of
competition, what did she haveto say about how buyers can make
their offers stand out?
Speaker 2 (08:58):
So she talked about this idea of warming up your
offer.
Speaker 1 (09:00):
Okay, warming up your offer.
Speaker 2 (09:02):
Yeah, like buying a home.
It's not just a financialtransaction.
It's often really personal forsellers.
Speaker 1 (09:07):
Yeah, their home.
Speaker 2 (09:08):
Exactly so she's like find ways to add a personal
touch.
Okay, you know, somethinggenuine and appropriate that
resonates with the seller beyondjust the price.
Speaker 1 (09:20):
Like what.
Speaker 2 (09:21):
Well, you know, it depends on the situation, right,
but maybe a letter talkingabout what you love about the
house.
Speaker 1 (09:27):
Okay.
Speaker 2 (09:27):
Or how you can see your family living there.
Speaker 1 (09:29):
Yeah.
Speaker 2 (09:29):
Something that shows you're not just another buyer.
Speaker 1 (09:31):
Right, you connect with it.
Speaker 2 (09:32):
Exactly.
Speaker 1 (09:32):
Okay, so for all you buyers out there thinking about
2025.
Speaker 2 (09:37):
Here's the takeaway.
Speaker 1 (09:37):
Get your finances in order.
Investigate those assistanceprograms.
Figure out your needs versusyour wants.
Speaker 2 (09:44):
Keep learning about your local market.
Speaker 1 (09:46):
Yes, make saving a priority and think about how you
can personalize your offer.
Speaker 2 (09:51):
Yeah, great advice.
Speaker 1 (09:52):
So now let's switch gears and talk about the sellers
.
Okay, you know.
What insights did Stephanieshare for those who might be
thinking about selling in 2025?
Speaker 2 (10:02):
All right.
So for sellers, timing is key.
Okay, she actually recommendslisting your property in late
February or early March.
Speaker 1 (10:11):
Why that time frame?
Speaker 2 (10:13):
So you're right, there at the start of the spring
buying season, okay, and theweather's usually getting better
, right?
So more buyers are out lookingat homes.
Speaker 1 (10:20):
Makes sense.
Speaker 2 (10:21):
But here's the thing she's like you got to be
prepared.
Okay, Start getting yourproperty ready now.
Speaker 1 (10:27):
Don't wait till the last minute.
No procrastination allowed.
Speaker 2 (10:31):
So what kind of advice did she have about
getting your home ready to sell?
Speaker 1 (10:35):
Okay, so she had this great acronym that I love it's
PLANS.
Plans Okay so the P stands forprice.
Strategically Okay, don't getgreedy, don't overprice your
home.
Speaker 2 (10:44):
Right, even if you think you can get away with it.
Speaker 1 (10:46):
Right.
Speaker 2 (10:46):
Okay, what's L?
Speaker 1 (10:48):
L is for light up the house.
Speaker 2 (10:50):
Literally yeah.
Increase the wattage of yourlight bulbs.
Make sure every room is brightand welcoming it makes a big
difference.
Speaker 1 (10:56):
It does, it does.
What about A?
Speaker 2 (10:58):
A is for ask an agent .
Speaker 1 (10:59):
Okay.
Speaker 2 (11:00):
You know work with a good, experienced real estate
agent.
Speaker 1 (11:02):
Someone you trust.
Speaker 2 (11:03):
Uh-huh, someone who knows your market.
Speaker 1 (11:06):
What about N?
Speaker 2 (11:07):
N is for negotiate creatively.
Speaker 1 (11:10):
Okay.
Speaker 2 (11:11):
Be open to different strategies, you know, beyond
just the final sale price.
Speaker 1 (11:16):
Right, think outside the box, exactly and finally S.
Speaker 2 (11:19):
S is for stage for success.
Speaker 1 (11:22):
Staging.
We hear a lot about staging.
Does it really make that muchof a difference?
Speaker 2 (11:26):
Oh, she says, it makes huge difference.
Speaker 1 (11:28):
Huge difference Okay.
Speaker 2 (11:29):
You know, presenting your home in the best possible
light it really influences howbuyers see it and what they're
willing to offer.
Speaker 1 (11:35):
So make it look good.
Speaker 2 (11:36):
Make it shine.
Speaker 1 (11:37):
Okay, so if you're thinking about selling in 2025.
Speaker 2 (11:41):
Late February, early March.
Speaker 1 (11:43):
Late February, early March, and start working on your
plans now.
Speaker 2 (11:46):
Get those plans in motion.
Speaker 1 (11:48):
Price strategically, light it up.
Ask an agent negotiatecreatively.
Stage for success.
Speaker 2 (11:53):
Great advice.
Speaker 1 (11:54):
So we've covered a lot today.
Speaker 2 (11:55):
We have.
Speaker 1 (11:57):
What are the big takeaways you think our
listeners should really rememberabout the 2025 real estate
market, based on what Stephanieshared.
Speaker 2 (12:04):
So the key things to keep in mind are mortgage rates.
We're expecting them to ease abit, but don't expect them to go
back to those record lows.
Ok, it's safer to plan forthose high sixes.
Speaker 1 (12:16):
High sixes.
Speaker 2 (12:17):
Yeah, Then you know, if they go lower, you're
pleasantly surprised.
Speaker 1 (12:20):
That's right.
Speaker 2 (12:21):
As for inventory, you know it's still a little tight
because of those homeowners thatare locked into those lower
rates, but we're seeing signs ofa gradual shift towards a more
balanced market.
Speaker 1 (12:31):
Okay, slow and steady .
Speaker 2 (12:32):
Exactly.
And for buyers, you know, beingfinancially prepared, exploring
those assistance options,knowing your needs, those are
all super important.
Speaker 1 (12:41):
And for seller.
Speaker 2 (12:41):
Strategic timing, you know, late winter, early spring
, and then that carefulpreparation using the Planet
Tech framework that's going tobe key.
Speaker 1 (12:49):
All right, so really good advice for both sides.
Speaker 2 (12:52):
Yeah, lots to think about.
Speaker 1 (12:53):
So, as you process all of this, you know you're
thinking about these trends andmortgage rates and inventory
Right and the advice for bothbuyers and sellers.
Here's a final thought for you.
Speaker 2 (13:07):
Okay, you know what's the most empowering step you
feel like you can take, based onthis information regarding your
housing goals this year, that'sa great question.
Speaker 1 (13:11):
Are you actively planning to buy?
Are you thinking about sellingor do you just want to?
You know, understand the realestate landscape a little better
?
Whatever your goal is, take amoment and think about that.
One actionable step you cantake right now.
Speaker 2 (13:27):
Yeah, step you can take today.
Speaker 1 (13:29):
To move forward with confidence and a clear plan.
Speaker 2 (13:32):
With knowledge is power right.
Speaker 1 (13:33):
That's right, that's right and that's what we try to
do here on the Deep Dive.
Speaker 2 (13:37):
Absolutely Give you the information you need to make
the best decisions.
Speaker 1 (13:41):
So thanks for joining us.
Speaker 2 (13:42):
And happy house hunting.
Speaker 1 (13:43):
Or selling.
Speaker 2 (13:44):
Or just being informed.
Speaker 1 (13:46):
All right, we'll see you next time on the Deep Dive.
Speaker 2 (13:48):
Take care.
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