the WiRE - Weekly Roundup Podcast Por the WiRE - the Week in Real Estate arte de portada

the WiRE - Weekly Roundup

the WiRE - Weekly Roundup

De: the WiRE - the Week in Real Estate
Escúchala gratis

Acerca de esta escucha

Your go-to summary of the top stories shaping the real estate industry this week.

© 2024 The WiRE Podcast Network. All rights reserved. This podcast and its content, including audio, text, and graphics, are the intellectual property of The WiRE Podcast Network. Unauthorized reproduction, distribution, or use is strictly prohibited without prior written consent. For permissions or inquiries, visit thewirefm.com. Economía Gestión y Liderazgo Liderazgo Marketing Marketing y Ventas Política y Gobierno
Episodios
  • Real Estate Roulette: Are Falling Prices Wiping Out Your Equity?

    Real Estate Roulette: Are Falling Prices Wiping Out Your Equity?
    Jun 16 2025
    Welcome to a critical episode of "Real Estate Roulette," where we dive deep into the current state of the housing market, a landscape increasingly fraught with uncertainty for homeowners and investors alike. Our title, "Are Falling Prices Wiping Out Your Equity?" isn't just a rhetorical question; it reflects a tangible concern echoed across recent reports and market sentiment. We'll explore the data behind these fears and arm you with the knowledge to navigate this complex environment.The Shifting Sands of Home EquityThe most pressing concern for many is the direct impact of market shifts on personal wealth. Recent data indicates a tangible dip: "Home equity dips $4K as prices slow, costs climb," revealing a direct hit to the average homeowner's wealth [i]. This isn't an isolated incident; the broader picture shows "Household real estate asset value falls to start the year," indicating a systemic softening that affects the collective value held in real estate nationwide [i]. For investors, the situation is particularly stark, with warnings that "even smart investors get wiped out" as investors sell off homes "amid softening market" conditions [i]. This suggests a need for heightened vigilance and strategic adaptation.Understanding the Market VolatilitySeveral intertwined factors contribute to this "roulette" environment:•Builder Confidence and Supply: Homebuilder confidence has "dropped to lowest level since 2023, according to Zelman survey," signaling potential slowdowns in new construction [i]. Compounding this, "producer prices rise in May" with new construction input costs increasing, putting upward pressure on building expenses and potentially limiting supply further or pushing up new home prices [i].•Inflationary Pressures: Broader economic indicators show "inflation up slightly in May," which can erode purchasing power and impact mortgage rates, adding another layer of complexity for buyers and sellers [i].•Mortgage Rates and Buyer Sentiment: While "mortgage demand rises to the highest level in over a month" and "clouds begin to part for buyers as mortgage rates hold steady," the underlying economic conditions still influence borrowing costs and affordability [i]. Buyers are showing increased optimism as "consumer anxiety eases," but caution remains key [i].•Falling Prices in Key Markets: The market isn't monolithic; "141 markets where home prices are falling" in June 2025 demonstrate localized vulnerabilities that can significantly impact equity in specific regions [i]. This geographical disparity means the risk of equity erosion is not uniform.•Foreclosure Trends: While not widespread, "May 2025 foreclosure data" from ATTOM indicates that bank home repossessions are still occurring, a stark reminder of the downside risks in a challenging market [i].Navigating the Game: Strategies for Homeowners and InvestorsDespite the challenges, opportunities and protective measures exist:•Leveraging Equity: For those with existing equity, it's worth assessing if "you may have enough equity to downsize and buy your next house in cash," a strategy that can insulate against future market fluctuations and remove mortgage payment burdens [i].•Buyer Strategies: For prospective buyers, exploring "4 rate-lowering strategies to share with buyer clients" can make homeownership more accessible [i]. The re-emergence of "assumable mortgages to the masses" through new startups also presents an intriguing option for taking over existing, potentially lower, interest rates [i].•Long-Term Investment Mindset: Even with market headwinds, experts still argue "why real estate is still worth it in 2025" and offer guidance on "how to keep investing in real estate even when the market feels stacked against you" [i]. This highlights the importance of a long-term perspective and disciplined approach.•Avoiding Pitfalls: Understanding processes like "how to make sure you don't fall out of escrow" as a buyer, and "how to make sure your home closes escrow" as a seller, is crucial for successful transactions [i]. Additionally, for those renovating, being aware of "the 7 worst mistakes you can make while renovating and how to avoid them" can prevent costly errors [i].Broader Market Dynamics and Future OutlookBeyond individual equity, the real estate landscape is undergoing significant structural shifts:•The MLS Power Struggle: "NAR membership structure, fees under fire in new lawsuit" and the "MLS power struggle" over listing rules are central to how real estate transactions will be conducted in the future [i]. With "over 2.5 million claims filed in commissions lawsuits" and an "MLS PIN deal approved after long-fought battle with DOJ," the industry is at a pivotal point, potentially redefining agent compensation and market access [i].•Rental Market Pressures: The phenomenon of "tenants are flooding the suburbs where they can't afford to buy" highlights a growing disconnect between rental demand and homeownership ...
    Más Menos
    Menos de 1 minuto
  • Your Home Value Just Peaked? The Unexpected Slowdown Hitting Real Estate

    Your Home Value Just Peaked? The Unexpected Slowdown Hitting Real Estate
    Apr 28 2025
    In this episode, we're diving into a significant shift in the housing market: an unexpected slowdown in the seemingly relentless rise of home values. Recent data suggests that the market may be hitting a plateau, and in some areas, prices are even declining. This comes after a long period of growth, leaving many to wonder if we've reached a peak.The Cooling Market: By the Numbers- Nationwide, home price growth is decelerating. In March 2025, the year-over-year increase was 4.6%, down from 5.1% in February. This marks the eleventh consecutive month of slowing annual growth and the first time below 5% since August 2023. Redfin reported an even slower growth rate of 2.1% year over year for the four weeks ending April 20. This is the slowest pace since July 2023.- More strikingly, home prices fell year over year in 11 of the 50 most populous U.S. metro areas during the four weeks ending April 20, the most in 19 months. Notable declines were seen in San Antonio (-3.7%), Oakland, CA (-3.5%), and Jacksonville, FL (-2.2%). Zillow's forecast has taken a rare negative turn, predicting a 1.7% decline in national home values between March 2025 and March 2026. Sixteen of the top 50 metros studied by Zillow have already seen year-over-year home value drops, with Austin, TX, experiencing the largest at -4.6%.- This slowdown is also reflected in the month-over-month data. In March 2025, 20 of the 50 most populous metros recorded a drop in home prices month over month, with Columbus, OH, leading the decline at -0.7%.Factors Contributing to the Slowdown- Economic Uncertainty: Rising housing costs and broader economic jitters are making buyers nervous. Concerns about the economy and personal finances are leading to hesitation. Zillow suggests that a "dip in stock portfolios, challenged affordability, and continuing economic uncertainty" may cause potential buyers to adopt a "wait and see" approach, putting downward pressure on prices. New tariffs are also adding to this uncertainty.- Increased Inventory: The supply of unsold existing homes jumped 8.1% from February to March, reaching 1.33 million units. This represents a 19.8% increase from March 2024 and a 4.0-month supply. Altos Research noted the biggest single week of inventory gains in nearly three years. A greater supply of homes gives buyers more selection and reduces upward pressure on prices.- Sluggish Sales: Existing home sales fell 5.9% from February to March and 2.4% year-over-year, according to the National Association of Realtors (NAR). This decline occurred even as mortgage rates were trending down, suggesting a fundamental hesitancy among buyers.- Buyer Hesitation and Canceled Sales: Economic jitters are also prompting some buyers to back out of deals. 13% of pending home sales were canceled in March.Shifting Dynamics: Seller Concessions and New Home Sales- To entice wary buyers, sellers are increasingly offering concessions. 44.3% of home sales in the first quarter of 2025 included seller concessions, up from 39.3% in the same period last year and just shy of the record. In some metros, like Seattle, the rate is as high as 71.3%, nearly double the share from a year ago. Redfin economists suggest sellers may need to price lower than their initial instinct to sell quickly and avoid giving concessions.- Interestingly, new home sales experienced a "surprising" boost in March, rising 7.4% from February and 6.0% year-over-year. This may be attributed to lower mortgage rates earlier in March and a strong push for homes priced under $400,000. The median price of new houses sold was $403,600, down 7.5% from a year ago, suggesting builders are focusing on smaller, less expensive homes.Regional VariationsIt's crucial to note that the housing market is not uniform across the country. Regional breakdowns reveal different trends in sales and prices. For example, while national existing-home sales declined, the West saw a 1.3% increase year-over-year. Home value declines are concentrated in specific metros. Altos Research highlights the different trajectories of northern and Sunbelt markets, with Florida standing out as particularly weak in weekly pending home sales.The Debate Over Private ListingsAnother dynamic influencing the market is the ongoing debate surrounding private or "off-market" listings. Companies like Zillow and Redfin have implemented policies to bar publicly marketed listings that are not shared via the MLS, aiming for greater transparency. This stance has garnered support from some brokerage CEOs who believe private networks serve brokerages rather than the public. However, proponents of private listings, like Compass CEO Robert Reffkin, allege that Zillow's actions are anti-competitive. This debate underscores the tension between providing exclusive opportunities and ensuring broad market access.The Rise of Presale RenovationsIn a potentially related trend, presale renovation is moving from a niche strategy to a more mainstream approach. Data ...
    Más Menos
    13 m
  • Tariff Shockwave: Is Your Dream Home $11,000 More Expensive?

    Tariff Shockwave: Is Your Dream Home $11,000 More Expensive?
    Apr 21 2025
    Today, we're diving deep into a critical issue shaking the housing market in April 2025: the impact of recently announced tariffs. Could these trade policies add a staggering $11,000 to the cost of your dream home? Let's explore the tariff shockwave and its implications.The National Association of Home Builders (NAHB) recently released its monthly housing market index for April, which, despite a slight uptick in builder confidence to 40, reveals significant underlying concerns. While the easing of mortgage rates in late March may have temporarily pushed some buyers off the fence, this optimism could be short-lived.A key finding from the NAHB survey highlights that a majority of builders (60%) reported that their suppliers have already increased or announced increases in prices due to tariffs. These cost hikes are averaging 6.3% and, according to the NAHB, could add approximately $10,900 to the cost of building a new home. Other sources corroborate that builders were already experiencing rising material costs even before the tariffs fully took effect. This uncertainty surrounding tariffs and broader economic conditions is also making clients hesitant about larger remodeling projects.It's important to note that these costs are rising even though many of the tariffs have been delayed or won't take effect until later in the year. Paul Emrath, vice president for survey and housing policy research for NAHB, explained that the mere announcement of tariffs can have an adverse effect on the behavior of consumers and even businesses. This uncertainty, stemming from the Trump administration's tariff announcements, appears to be seeping into the building industry.Builders themselves are expressing growing uncertainty over market conditions due to tariff-induced price volatility, as well as labor and land shortages. While builders were most confident about current sales conditions in April, their expectations for home sales over the next six months have declined. Furthermore, while builder confidence saw a slight increase in April, it is still down significantly from a year ago, when the index stood at 51.The impact of these rising costs will likely be passed on to consumers. Odeta Kushi, deputy chief economist at First American, stated that if these tariffs persist, builders will have no choice but to pass on the costs to consumers, who are already struggling with housing affordability. This could further dampen homebuying demand, as economic experts warn that home sales may begin to slow due to concerns about the economy and fluctuating mortgage rates.Adding to the complexity, housing starts for single-family homes were down 14.2% in March compared to February, and building permits for single-family homes also dropped by 2%. This slowdown in new home construction occurs as builders face persistent supply-side and affordability challenges.The potential increase in new home prices due to tariffs also coincides with a broader market where home price growth is already losing steam. Fannie Mae economists have scaled back their price growth estimates for 2025, and some analysts believe prices could even fall. Mike Simonsen of Altos Research noted that home prices are staying "just barely positive" and questioned whether economic turmoil could force them to shift negative, drawing parallels to price drops seen in 2022 following interest rate spikes.Redfin reported that for the four weeks ending April 13, 2025, the median sale price increased by a modest 2.6% year-over-year, down from higher growth rates seen earlier in the year. At the same time, new listings are up 11.2% year-over-year, and active listings are up 12.3%, indicating more choices for buyers but potentially less leverage for sellers.Interestingly, a recent survey by Realtor.com found that 81% of potential sellers expect to get their asking price or more, but Redfin's Elijah de la Campa suggests a growing disconnect between seller expectations and the direction the market is actually moving. With tariff fears and economic uncertainty making homebuyers nervous, sellers who don't lower their price expectations may see their homes linger unsold.In early April, Redfin noted that new listings were up 10.3% year-over-year, suggesting some sellers might be looking to cash in on their equity before a potential economic downturn further dampens demand and possibly drives down home values.Regionally, builder confidence in April, based on the three-month rolling average, remains highest in the Northeast (47) and lowest in the West (35). This regional disparity suggests that the impact of tariffs and overall market conditions may not be uniform across the country.In conclusion, the announced tariffs are sending a shockwave through the housing market. Builders are already facing rising costs, which could translate to significantly higher prices for new homes. This added cost pressure, coupled with economic uncertainty, could further slow down buyer demand and ...
    Más Menos
    14 m
adbl_web_global_use_to_activate_webcro805_stickypopup
Todavía no hay opiniones