The housing market in the South is heating up fast, with prices climbing to crazy levels.
Experts warn that the bubble could pop, leaving stretched buyers in a tough spot.
Meanwhile, builders are drowning in new homes, with inventory at its highest since 2007.
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Meanwhile, mortgage rates over 7% are keeping buyers on the sidelines, causing pending home sales to tank.
Sellers are holding out, but profits are slipping, raising concerns about a prolonged downturn.
With 2025 on the horizon, the big question is whether home prices will finally fall or if uncertainty will keep everyone guessing.
In this edition of the AltReports:
🔍 Bubble Bash
📦 Builder Boom
😬 Buyer Blues
🤦♂️ Sales Slump
🤷♂️ Value Volatility
Video of the Week: Are Distressed Properties the Opportunity of 2025?
Chart of the Week: Delinquency Rates for Commercial Properties Increased in Q4
Podcast of the Week: How To Double Your Revenue in 2025 (doing less deals)
Housing Market Crash: Expert Says Market 'Ready to Pop'
Experts are warning that the housing market in the South is about to blow its top as prices surge into ridiculous territory. High demand, low supply, and stubborn inflation are driving property values to dangerous heights. Homebuyers are being set up for a harsh wake-up call if this bubble finally pops.
New Completed Single-Family Houses for Sale Spikes to Highest since 2007
The inventory of newly completed single-family homes for sale has surged to its highest level since 2007. This increase results from a construction boom during the pandemic combined with current market saturation. Builders are now offering lower prices, extensive incentives, and smaller homes to stimulate sales, signaling caution for future market conditions.
Pending Home Sales Drop Sharply in December
Pending home sales nosedived in December as mortgage rates climbed over 7%, and buyers are clearly not in the mood to jump in. The market is getting squeezed by these sky-high rates, leaving everyone with a bad taste in their mouths. Agents are scrambling to adjust, but the slowdown is leaving a sour note across the board.
Home Selling Profits Slide Again in 2024 Across U.S. Despite Continued Price Gains
In 2024, overall home sales declined sharply while property prices fell steadily.
Sellers are increasingly reluctant to let go of their homes despite a market in distress.
Mixed year-end regional performances have raised concerns about a potential prolonged downturn in 2025.
Will We See Home Prices Decline in 2025?
Experts predict that home prices may decline in 2025 amid ongoing economic uncertainty and high inventory levels. While some remain hopeful for a market recovery, the current conditions suggest a greater likelihood of price dips. This uncertainty leaves both buyers and sellers facing a volatile real estate landscape.