231: With Slow Spring Homebuying, Zillow Predicts Price Drops in 2025

On The Market

BiggerPockets

News, Investing, Business, Education

4.8 • 820 Ratings

🗓️ 4 July 2024

⏱️ 38 minutes

🔗️ Recording | iTunes | RSS

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Summary

Zillow’s latest housing market forecast shows a decline in home prices over the next year after a very slow spring homebuying season. While spring is traditionally the hottest time of the housing market, with more sellers and buyers hitting the market at once, this year was stunted significantly. Will this trend continue as housing inventory remains at rock-bottom levels, or are things gradually improving, with a return to normalcy in sight? We’ve got Dr. Skylar Olsen, Chief Economist at Zillow, on to share the latest forecast and which markets could be in trouble. With mortgage rates still hovering around seven percent, homebuyers and sellers are stuck. Sellers don’t want to trade into a more expensive mortgage payment, and buyers can’t afford today’s median home price. As a result, some under-the-radar, affordable real estate markets are seeing home and rent prices increase, while some traditionally hot markets are already seeing price corrections. Where will the next correction hit, and which markets will have the most opportunity for real estate investors? Skylar explains it all, plus why Zillow updated their recent home price forecast to show a DROP in home values over the next year. In This Episode We Cover Zillow’s updated housing market forecast and why they’re predicting prices to drop The spring homebuying season’s “extra slowdown” and why buying/selling is so stunted Skylar’s 2025 housing market and mortgage rate predictions What happens when mortgage rates get cut, and whether this could fire up the housing market again The real estate markets seeing the most price corrections, plus hot markets Zillow is keeping an eye on Markets with the strongest rent growth (for single-family AND multifamily investors) And So Much More! Links from the Show Find a Lender Join BiggerPockets for FREE Join the Future of Real Estate Investing with Fundrise Episode Show Notes Subscribe to The “On The Market” YouTube Channel Start Investing with Dave’s Newest Book, "Start with Strategy" See Dave at BPCON2024 in Cancun! Dave's BiggerPockets Profile Dave's Instagram Property Manager Finder BiggerPockets Real Estate 959 - BiggerNews: 2024 Housing Market Update and Why Prices Are Still Rising Access Zillow’s Free Housing Data Jump to topic: (00:00) Intro (01:41) Homebuying Sees “Extra Slowdown” (06:56) Homes Sitting Longer (08:39) More Inventory On the Way? (13:42) Zillow Updates Forecast (18:17) Markets Seeing Price Corrections (21:35) Hot Markets (23:00) Where Rents Are Growing (27:10) Investors, Watch THIS (29:53) 2025 Predictions Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/on-the-market-231 Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email [email protected]. Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	The spring buying season is a super important time for the entire real estate industry,
0:05.4	but over the last couple years, it hasn't been as hot as it normally was.
0:10.1	So what actually happened this year?
0:12.5	Was it as hot as economists predicted?
0:14.9	What did inventory and home price growth even look like?
0:18.1	And how will that change over the rest of the year?
0:22.2	Today, we have a market update episode for you hey everyone and welcome to the bigger pockets network i'm dave mire and
0:33.6	if you're listening on the bigger pockets real estate feed it's Friday. So that means we have a bigger news episode for you.
0:39.0	But we are also playing this on our on the market feed.
0:43.0	And if you're there, welcome.
0:44.4	Good to have you all here.
0:46.0	For today's episode, we are bringing on Dr. Skyler Olson, who is a member of Zillow's
0:51.6	economic research team.
0:53.3	And Dr. Olson is going to share with us a whole
0:56.6	bunch of information and research, including an update on the spring buying season that I was
1:01.6	just talking about, and what actually happened? Is there any signs of a recovery in home sales?
1:07.2	We're also going to talk a lot about inventory as we do in these market episodes because it's just very important and is really driving so much of the market behavior right now.
1:17.4	We'll talk about Zillow's forecast adjustments and why they think certain markets might be heading for a correction in the next year.
1:25.3	And lastly, we will, of course, pull out our crystal ball as we do with most of the economists
1:29.9	and discuss what we think will happen
1:31.7	for the rest of the year and into 2025.
1:34.5	Let's bring on Dr. Skyler Olson.
	...

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