Zillow: Price Cuts Hit Record as Inventory Floods Back (May 2025)

On The Market

BiggerPockets

News, Investing, Business, Education

4.8 • 820 Ratings

🗓️ 12 May 2025

⏱️ 33 minutes

🔗️ Recording | iTunes | RSS

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Summary

Price cuts surge across the housing market as inventory bounces back in a big way. The “healthier” housing market is starting to show, and the “gap” between buyers and sellers is shrinking. Zillow’s Orphe Divounguy is back to give a sneak peek at their latest housing market data, which shows encouraging signs for buyers, agents, lenders, and anyone who wants the housing market to get back in action! After Zillow recently forecasted a home price decline in 2025, many saw this as a bearish signal for housing. But Orphe, Senior Economist at Zillow, says that this is instead a good sign for the market. With inventory rising, sellers are getting more realistic, meaning lower prices and more choice for buyers. But what about mortgage rates—could they also drop and fuel even greater affordability? Orphe is sharing his mortgage rate prediction as well. How will trade wars and tariffs affect the housing market with so many Americans on the financial edge? Could higher inflation and a potential recession breed big trouble for the housing market? We’re getting Orphe’s refreshingly data-backed (and surprisingly optimistic) take on what’s to come in the rest of 2025. In This Episode We Cover Zillow’s latest May 2025 housing market update (and GOOD news for buyers) Record price cuts: why sellers are starting to get realistic Housing markets seeing the most pain, and which to think twice about before investing How trade wars and tariffs could hit housing, and Orphe’s take on inflation Is a recession really coming? Why Orphe isn’t so sure that the writing is on the wall 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 an Investor-Friendly Agent in Your Area Dave's BiggerPockets Profile BiggerPockets Real Estate 1101 - Housing Market Shift: Inventory Catapults Back, Buying Opportunities Grow Economic Policy Uncertainty Index Grab Dave’s Book, “Real Estate by the Numbers” Check out more resources from this show on ⁠⁠⁠⁠⁠BiggerPockets.com⁠⁠⁠⁠⁠ and ⁠⁠⁠⁠https://www.biggerpockets.com/blog/on-the-market-320 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	New data is in from Zillow, and it's giving us a clearer picture of where the housing market is headed.
0:05.9	I'm Dave Meyer, and today I'm joined again by Orfei Dvengai, senior economist at Zillow,
0:11.6	to give us a sneak peek into their unreleased housing market update.
0:15.5	We're going to talk about shifting inventory, changing buying behavior,
0:18.6	and what Zillow's latest forecast says about home values
0:22.4	and mortgage rates for the rest of 2025. Whether you're buying, selling, or investing,
0:27.2	this is a must here for those wondering where the market may head next. Let's get into it.
0:37.4	Orfe, welcome back to On the Market. Thanks for being here.
0:40.2	It's my pleasure. It's one of my favorite shows, you know?
0:43.2	Thank you. Well, we appreciate you being here. You've become a friend of the show. You're
0:47.8	here often. Tell us what's been going on since we last seen you. It's been a very exciting time
0:53.3	in the housing market to say the
0:54.8	least. Tell me just what's on the top of your mind? What do you think are the most important
0:58.9	developments, real estate investors and people in the housing industry should be thinking about
1:03.4	these days? Well, the fact that inventory is rising again. Yeah. You know, the total number of
1:08.3	homes for sale was so low during the pandemic.
1:12.4	And now we're actually seeing some markets have more inventory than we've had before the pandemic.
1:18.2	Nationwide, the deficit in inventory compared to before the pandemic is the smallest.
1:23.8	It's been in a long time.
1:26.5	I think we're looking at more inventory on the market than any time since August 2020.
1:31.3	Yeah.
1:31.6	And so I think that's good news.
	...

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