May 2025 Housing Market Update: Price Cuts Arrive, Market “Softening” Continues

BiggerPockets Real Estate Podcast

BiggerPockets

Education, Business, Investing

4.8 • 16.5K Ratings

🗓️ 16 May 2025

⏱️ 37 minutes

🔗️ Recording | iTunes | RSS

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Summary

The housing market is going through another significant shift. Sellers have lost even more control as price cuts become common in some top markets. Rents are flat, but will they stay this way? The Trump administration presents a groundbreaking proposal that could greatly affect many real estate investors. This is May 2025’s housing market update, where we’re filling you in on all the biggest stories affecting real estate! The market “softening” continues. Inventory is rising, and sellers are realizing this isn’t 2022 anymore. Price cuts have become common in Texas, Florida, and California. But other markets are still seeing price jumps, so have the southern states become the new buyer’s markets? Investing opportunities could be here for the right buyers, and Dave has already made a move, locking up his latest investment to capitalize on what’s to come. But what about mortgage rates? Do we have any hope that we’ll get below 6% this year? Dave shares his updated mortgage rate “range” for 2025. Have Section 8 renters? You’ll want to hear the end of today’s episode as a new proposal from the Trump administration could slash Section 8 funding, putting tenants and landlords in a tricky position. All that, and more, in today’s episode! In This Episode We Cover The housing market “shift” pushing us into a bigger buyer’s market The end of Section 8? A new proposal from D.C. could cause major cuts Markets with the most price cuts and areas where prices are rising instead Mortgage rate forecast and the range we could hover around for the rest of the year Investing opportunities with “juicier” returns as sellers lose control Rent price updates and which properties will get hit hardest as vacancy rises And So Much More! Check out more resources from this show on ⁠⁠⁠⁠⁠⁠⁠⁠⁠BiggerPockets.com⁠⁠⁠⁠⁠⁠⁠⁠⁠ and ⁠⁠⁠⁠⁠⁠⁠⁠⁠https://www.biggerpockets.com/blog/real-estate-1122 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 are big shifts happening in the housing market.
0:03.6	These are shifts towards a type of market we really haven't seen in years.
0:08.4	And although changes can catch some people off guard for knowledgeable and informed investors,
0:14.3	it actually creates opportunity.
0:16.0	So today I'm sharing with you my May housing market update to catch you all up on everything
0:21.3	investors need to know to build and manage their portfolio successfully.
0:30.4	Hey everyone, it's Dave.
0:32.0	Welcome to our monthly update on the housing market.
0:35.4	We've been doing these now for a couple of months as the economy
0:39.0	and the housing market continue to be very volatile. And this month is no exception. We've got a lot
0:45.6	going on and we've got a lot to get into today. We're going to spend most of our time in this
0:51.4	episode going deep into what I believe is the biggest theme in the market
0:55.6	right now, which is just this general market softness that we're observing and you're probably
1:01.3	feeling. But it's important to think about what market softness even means. Yes, prices are
1:08.0	weaker, almost across the board. In some markets, that means declines, but in other markets, it just means slower growth.
1:14.7	And this type of shift, this move towards a softer market from a seller's market to a more balanced market can create some fear, especially in the mainstream media.
1:25.2	But it can also create opportunity if you understand what's going on and how to
1:30.6	adjust your strategies.
1:31.9	So we're going to go deep into this idea today, but we'll also hit on a couple other
1:36.4	topics like what's going on with mortgage rates.
1:38.4	And I'll share with you some important new rent trends that investors should definitely
1:42.7	have on their mind.
	...

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