Housing Market at Risk as Rates Rise, Dollar Weakens, Demand Freezes

On The Market

BiggerPockets

News, Investing, Business, Education

4.8 • 820 Ratings

🗓️ 21 April 2025

⏱️ 34 minutes

🔗️ Recording | iTunes | RSS

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Summary

The housing market may be at greater risk than many of us thought. An economic trifecta is forming. If all three conditions hit at once, it could spell serious problems for anyone in the real estate industry. We may be close to a time when high home prices, high mortgage rates, and a recession all meet, causing a significant slowdown with effects that could hurt everyone who buys, sells, or helps transact on homes. But how likely is this to happen? The past month has been a wild ride for the economy. Mortgage rates fell dramatically but are now shooting back up. Inflation and unemployment fears are peaking as consumer confidence drops to unprecedented levels. And now, new tariffs could drive costs even higher. This could change everything, weakening the US dollar and making buying a house even harder. Every real estate investor, agent, lender, or professional should understand these risks because the effects could be severe. In this episode, we’re breaking down all the latest economic changes and how they affect the housing market. In This Episode We Cover New risks to the housing market that could cause big changes for buyers and sellers Why interest rates are starting to reverse, shooting back up EVEN with high recession risk The trifecta of bad news for the housing market and what investors must know now What a weakening dollar means for mortgage rates and the US economy as a whole Transaction volume forecasts and whether we’ll still see a hot spring homebuying season And So Much More! Links from the Show Join the Future of Real Estate Investing with Fundrise Join BiggerPockets for FREE Sign Up for the On the Market Newsletter Find Investor-Friendly Lenders Dave's BiggerPockets Profile BiggerPockets Real Estate 1106 - The One True “Inflation-Proof” Investment (EVEN with Tariffs) Invest in Any Market Cycle with “Recession-Proof Real Estate Investing” Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/on-the-market-314 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	There's a trend in the economy right now, a potentially concerning one that could significantly
0:05.6	impact real estate markets. And although this story is still developing, I think it's important
0:10.4	to talk about it now so we can all stay ahead of the curve. Today, we're going to unpack the
0:16.2	wild few weeks that we've all just been through and how the potential impacts on the housing market
0:21.6	have me a little concerned.
0:28.6	Hey, everyone, it's Dave, head of real estate investing at Bigger Pockets.
0:32.7	And I will be honest with all of you, I have been absolutely glued to my computer the last few weeks following
0:38.5	every economic update, refreshing my browser every two minutes. There's just been so much to follow.
0:46.5	And to be honest, it's hard to make any definitive conclusions about what it all means,
0:52.4	what's going to happen next, because conditions are just
0:54.8	changing so continuously.
0:57.3	But there are a few things that have happened, which may have flown under your radar that
1:02.2	could potentially impact the real estate market.
1:04.7	And I am a little bit concerned about some of these things.
1:08.7	I'm not like running for the hills or anything like that, nor is it anything that is definitive right now. But let's just say that there have been
1:16.3	some new risks that have been introduced to the housing market. And there are things that we should
1:20.6	be talking about. So that's what we're going to do today. We're going to get into this. But
1:24.2	please just remember, this is an emerging trend. It's nothing definitive.
1:28.6	I just feel like it's important to share with you what I am thinking about, what I see as
1:33.5	some increased risks that real estate investors should be thinking about.
1:37.3	All right, so you probably all know the big picture what's going on.
1:41.2	Everyone knows there have been tariffs that are on and off. And it's hard to
	...

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