Home sales are stalled with 7% mortgages

In this week's video:
0:00 Home sales are very slow in January
2:00 Inventory trends
4:08 New listings
6:50 Home sales in January 2025
8:38 Home prices in January 2025
11:37 Price reductions

Altos Research is the premier resource for real-time real estate data. We provide weekly market statistics, analysis and reporting for 99% of the zip codes in the U.S., helping real estate professionals, investors, financial institutions, and their clients make better-informed decisions.

Featuring Mike Simonsen, President of Altos Research

A true data geek, Mike founded Altos Research in 2006 to bring data and insight on the U.S. housing market to those who need it most. Altos provides national and local real estate data to financial institutions, real estate professionals, and investors across the country, and the company is now part of HW Media, publisher of HousingWire and RealTrends. Mike uses Altos data to identify trends in the real estate market well before the headlines, and his work has been featured in the New York Times, The Atlantic, Fortune, Forbes and other publications.

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Altos Research is now part of HW Media! Check out their channel at @HousingWire for more housing market insights.

[EthanFlynn]

I'd be curious what percentage of cancelled/expired listings are showing up in inventory.

[damp_squid]

How does this channel not get more views?

So much better than all those pop-finance influencers with pictures of burning houses in the thumbnail background haha

[ISpitHotFiyaa]

$375K at 3% is the same payment as $240K at 7%. So it looks like home prices need to drop about $125K. Either that or buyers need a 56% raise (I wouldn't hold my breath). Also, rates won't really drop until the Fed is through selling off all of the MBS it bought during the pandemic. That will take years.

[raulp]

Home prices are still like 25% overvalued. Home prices need to come down to reflect current interest rates

[wzeng]

Hi Alto Research, do you have this data breakdown by region? In the Northeast here (northern NJ and southern CT), the properties sales are selling over asking by 5-10%. Multiple offers and waiving inspection. House sale within 7 days - gone. While in Texas it might be slowing but it will help if you can show this data by region.

[TylerShort]

Would love for you to show 2025 home sales, not just to 2024 (near all time lows), not just 2023 (near all time lows) but compared to previous years so you can really show JUST how low transactions are compared to historical norms. LOVE SEEING IT!

[edwardstanton]

"Home sales are stalled due to high prices."

[EthanFlynn]

New listings up YOY while demand is down YOY. That trend could create a massive growth in inventory if it continues through spring.

[scottsnyder]

I don’t see anything moving existing home sales from bouncing along the bottom. I don’t see mortgage rates falling much below 7%, and definitely not below 6.5%.
I do see an uptick in listings for two reasons. One, in Northeast, Midwest and Florida because of an aging of long-time homeowners, many of whom have substantial equity and no mortgage. The oldest of the baby boomers are now 78. In 2000, 9.2 million Americans were 80 or over. In 2010, it was 12.9 million. In 2020, it was 20.7 million. Today it is likely over 23 million.
Two, higher listings in pandemic boomtowns - for a number of reasons - including high equity for longer term homeowners, falling rents mitigating demand, new construction coming online and a possible outmigration of newer migrants for to overly high living costs.
The only way to spur purchases is declining prices, improving affordability. I don’t see a bid decrease, but sellers would be wise to price homes to sell, not sit

[NoOne-ho]

Affordable homes from young people isn't a risk

[elizabethv]

It’s the price that’s the problem!!!! Not the interest rates!!!

[RyanLundquist]

Definitely seeing condos outpace detached units in Sacramento.

[PaulWolf-th]

Nobody can afford these bubble prices.

[MK-lrow]

How about home sales are stalled BECAUSE PRICES ARE TOO HIGH!!

[elizabethv]

The interest rates are not the problem. Wake up realtors!!! Get a cluee

[MK-lrow]

Most if not all that is transacting is rich pply buying houses from eachother....hence the median house price sold is up!! No middle /lower class housing price points are transacting BECAUSE THERE ARE NONE!!!!

[threemonkeys]

All of the cash buyers are gone. The demand isn’t there to support the high prices from 3-4 percent interest rates when the rates are 7 percent

[paulcody]

Home purchases are on ice until home prices are affordable again. Mortgage rates are at historic norms. Price is the outlier. 7-10 yrs worth of demand was pulled forward into ‘21 & ‘22.

[IbrahimKone-ixqi]

I am at the beginning of my "investment journey", planning to put 385K into dividend stocks so that I will be making up to 30% annually in dividend returns. any good stock recommendation on great performing stocks or Crypto will be appreciated...

[joelballard]

We served meals at the homeless shelter this weekend and I didn’t see any realtors or mortgage brokers in the food line so the market is not that bad. Until we see the worthless non value added realtors and mortgage brokers in the food line, I would say nothing has changed.