Price Cuts Hit 12-Year High, Sellers Reconsider Quickly

On The Market

BiggerPockets

News, Education, Business, Investing

4.8 • 858 Ratings

🗓️ 11 August 2025

⏱️ 34 minutes

🔗️ Recording | iTunes | RSS

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Summary

Are we witnessing the beginning of a housing market crash, or is this just a healthy correction? With 42% of homes on the market having taken price reductions — the highest level in 12 years — host Dave Meyer sits down with Mike Simonsen, Chief Economist at Compass, to decode what these dramatic inventory changes really mean for investors and homebuyers. This episode reveals why rising inventory and falling prices don't automatically signal a market crash, and how current market dynamics are creating unprecedented buyer negotiating power for the first time in years. Links from the Show Join the Future of Real Estate Investing with Fundrise Join BiggerPockets for FREE Find an Investor-Friendly Agent in Your Area Find Investor-Friendly Lenders Property Manager Finder Dave's BiggerPockets Profile Check out more resources from this show on ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠BiggerPockets.com⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ and ⁠⁠⁠⁠⁠⁠⁠⁠⁠https://www.biggerpockets.com/blog/on-the-market-346 Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠advertise@biggerpockets.com⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠. Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	42% of homes on the market right now have taken a price reduction from their original list price.
0:05.7	That's the highest number we've seen in 12 years.
0:09.2	We're clearly in a different housing market than we've seen recently and one that's rapidly
0:13.5	changing.
0:14.4	Inventory is up and prices are still flat, at least for now.
0:18.3	These are the dynamics you need to understand if you're thinking
0:21.5	of investing in the next few months.
0:28.1	Hey, everyone, it's Dave, back with another episode of On the Market. Today we're joined by
0:33.0	Mike Simonson, chief economist at Compass. Mike is going to help us understand what is happening
0:39.3	with the current housing inventory nationally and regionally.
0:43.1	We're going to understand supply trends that are key to understanding when to invest and
0:47.7	how much negotiating power you have as a buyer or as a seller.
0:52.3	And Mike has been translating this raw data into real actionable
0:56.3	takeaways for many years that are going to help you decide what to do with your portfolio.
1:01.2	So let's bring them on. Mike Simonson, welcome back to On the Market. Thanks for being here today.
1:06.7	Dave, it's always fun to be here with you. Is it safe to say, Mike, you're sort of like the inventory guy in the industry? Like, that's how I think of you, is that like you have always sort of been, even before it was common to be talking about inventory each and every week. Like, you've always been tracking this stuff. Yeah, well, for almost 20 years, we've been tracking every home for sale in the country
1:28.5	once a week. And it's not just the inventory, but, but, you know, that active market, there's so
1:34.1	much signal in the active market, the active inventory and the pricing of that and the changes in
1:39.4	pricing. Like, there's so much signal in that traditional housing data was about what homes sold last month or two months ago.
1:48.3	And there's value in obviously knowing what sells and for how much it sells for.
1:52.3	But there is so much signal in how many are getting listed this week.
1:57.0	And what are the prices of the new listings and which ones are going into contract?
	...

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