15% ROI, 5% down loans!”,”body”:”3.99% rate, 5% down! Access the BEST deals in the US at below market prices! Txt REI to 33777 “,”linkURL”:”https://landing.renttoretirement.com/og-turnkey-rental?hsCtaTracking=f847ff5e-b836-4174-9e8c-7a6847f5a3e6%7C64f0df50-1672-4036-be7b-340131b43ea4″,”linkTitle”:”Contact Us Today!”,”id”:”65a6b25c5d4b6″,”impressionCount”:”1180951″,”dailyImpressionCount”:”5906″,”impressionLimit”:”1500000″,”dailyImpressionLimit”:”8476″,”r720x90″:”https://www.biggerpockets.com/blog/wp-content/uploads/2024/01/720×90.jpg”,”r300x250″:”https://www.biggerpockets.com/blog/wp-content/uploads/2024/01/300×250.jpg”,”r300x600″:”https://www.biggerpockets.com/blog/wp-content/uploads/2024/01/300×600.jpg”,”r320x50″:”https://www.biggerpockets.com/blog/wp-content/uploads/2024/01/320×50.jpg”,”r720x90Alt”:””,”r300x250Alt”:””,”r300x600Alt”:””,”r320x50Alt”:””},{“sponsor”:”BiggerPockets Lender Finder”,”description”:”2″,”imageURL”:null,”imageAlt”:null,”title”:”2″,”body”:”2″,”linkURL”:”https://www.biggerpockets.com/business/finder/lenders”,”linkTitle”:”Find a Lender”,”id”:”664e38e3aac10″,”impressionCount”:”232341″,”dailyImpressionCount”:”1024″,”impressionLimit”:”10000000000″,”dailyImpressionLimit”:”10000000″,”r720x90″:”https://www.biggerpockets.com/blog/wp-content/uploads/2024/05/Lender-Blog-720×90-1.png”,”r300x250″:”https://www.biggerpockets.com/blog/wp-content/uploads/2024/05/Lender-Blog-300×250-1.png”,”r300x600″:”https://www.biggerpockets.com/blog/wp-content/uploads/2024/05/Lender-Blog-300×600-1.png”,”r320x50″:”https://www.biggerpockets.com/blog/wp-content/uploads/2024/05/Lender-Blog-320×50-1.png”,”r720x90Alt”:”BiggerPockets lender finder”,”r300x250Alt”:”BiggerPockets lender finder”,”r300x600Alt”:”BiggerPockets lender finder”,”r320x50Alt”:”BiggerPockets lender finder”},{“sponsor”:”CV3 Financial”,”description”:”2″,”imageURL”:”https://www.biggerpockets.com/blog/wp-content/uploads/2024/07/Logo-512×512-1.png”,”imageAlt”:””,”title”:”2″,”body”:”2″,”linkURL”:”https://cv3financial.com/financing-biggerpockets/?utm_source=biggerpockets&utm_medium=website&utm_campaign=august&utm_term=bridge&utm_content=banner”,”linkTitle”:””,”id”:”66a7f395244ed”,”impressionCount”:”306366″,”dailyImpressionCount”:”3774″,”impressionLimit”:”636364″,”dailyImpressionLimit”:”4187″,”r720x90″:”https://www.biggerpockets.com/blog/wp-content/uploads/2024/07/CV3-720×90-1.png”,”r300x250″:”https://www.biggerpockets.com/blog/wp-content/uploads/2024/07/CV3-300×250-1.png”,”r300x600″:”https://www.biggerpockets.com/blog/wp-content/uploads/2024/07/CV3-300×600-1.png”,”r320x50″:”https://www.biggerpockets.com/blog/wp-content/uploads/2024/07/CV3-320×50-1.png”,”r720x90Alt”:””,”r300x250Alt”:””,”r300x600Alt”:””,”r320x50Alt”:””},{“sponsor”:”2″,”description”:”2″,”imageURL”:”https://www.biggerpockets.com/blog/wp-content/uploads/2024/08/REI-Nation-Logo.png”,”imageAlt”:””,”title”:”2″,”body”:”2″,”linkURL”:”https://hubs.ly/Q02LzKH60″,”linkTitle”:””,”id”:”66c3686d52445″,”impressionCount”:”312329″,”dailyImpressionCount”:”3115″,”impressionLimit”:”500000″,”dailyImpressionLimit”:”6173″,”r720x90″:”https://www.biggerpockets.com/blog/wp-content/uploads/2024/08/REI-Nation-X-BP-Blog-Ad-720×90-1.png”,”r300x250″:”https://www.biggerpockets.com/blog/wp-content/uploads/2024/08/REI-Nation-X-BP-Blog-Ad-300×250-1.png”,”r300x600″:”https://www.biggerpockets.com/blog/wp-content/uploads/2024/08/REI-Nation-X-BP-Blog-Ad-300×600-1.png”,”r320x50″:”https://www.biggerpockets.com/blog/wp-content/uploads/2024/08/REI-Nation-X-BP-Blog-Ad-320×50-1.png”,”r720x90Alt”:””,”r300x250Alt”:””,”r300x600Alt”:””,”r320x50Alt”:””},{“sponsor”:”RESimpli”,”description”:”2″,”imageURL”:”https://www.biggerpockets.com/blog/wp-content/uploads/2025/01/Color-Icon-512×512-01.png”,”imageAlt”:””,”title”:”2″,”body”:”2″,”linkURL”:”https://resimpli.com/biggerpockets?utm_source=bigger_pockets&utm_medium=blog_banner_ad&utm_campaign=biggerpockets_blog”,”linkTitle”:””,”id”:”679d0047690e1″,”impressionCount”:”108840″,”dailyImpressionCount”:”2705″,”impressionLimit”:”600000″,”dailyImpressionLimit”:”3315″,”r720x90″:”https://www.biggerpockets.com/blog/wp-content/uploads/2025/01/720×90-2.png”,”r300x250″:”https://www.biggerpockets.com/blog/wp-content/uploads/2025/01/300×250-2.png”,”r300x600″:”https://www.biggerpockets.com/blog/wp-content/uploads/2025/01/300×600-2.png”,”r320x50″:”https://www.biggerpockets.com/blog/wp-content/uploads/2025/01/320×50-2.png”,”r720x90Alt”:””,”r300x250Alt”:””,”r300x600Alt”:””,”r320x50Alt”:””},{“sponsor”:”Rent to Retirement”,”description”:”2″,”imageURL”:”https://www.biggerpockets.com/blog/wp-content/uploads/2025/02/Logo_whtborder_SMALL-2.png”,”imageAlt”:””,”title”:”2″,”body”:”2″,”linkURL”:”https://landing.renttoretirement.com/og-turnkey-rental?hsCtaTracking=f847ff5e-b836-4174-9e8c-7a6847f5a3e6%7C64f0df50-1672-4036-be7b-340131b43ea4″,”linkTitle”:””,”id”:”67a136fe75208″,”impressionCount”:”119948″,”dailyImpressionCount”:”2642″,”impressionLimit”:”3000000″,”dailyImpressionLimit”:”9010″,”r720x90″:”https://www.biggerpockets.com/blog/wp-content/uploads/2025/02/720×90.jpg”,”r300x250″:”https://www.biggerpockets.com/blog/wp-content/uploads/2025/02/300×250.jpg”,”r300x600″:”https://www.biggerpockets.com/blog/wp-content/uploads/2025/02/300×600.jpg”,”r320x50″:”https://www.biggerpockets.com/blog/wp-content/uploads/2025/02/320×50.jpg”,”r720x90Alt”:””,”r300x250Alt”:””,”r300x600Alt”:””,”r320x50Alt”:””},{“sponsor”:”Fundrise”,”description”:”2″,”imageURL”:”https://www.biggerpockets.com/blog/wp-content/uploads/2025/02/512×512.png”,”imageAlt”:””,”title”:”2″,”body”:”2″,”linkURL”:”https://fundrise.com/campaigns/fund/flagship?utm_medium=podcast&utm_source=biggerpockets&utm_campaign=podcast-biggerpockets-2024&utm_content=REbanners”,”linkTitle”:””,”id”:”67a66e2135a2d”,”impressionCount”:”99717″,”dailyImpressionCount”:”2459″,”impressionLimit”:”1000000″,”dailyImpressionLimit”:”3049″,”r720x90″:null,”r300x250″:”https://www.biggerpockets.com/blog/wp-content/uploads/2025/02/Fundrise-300×250-1.png”,”r300x600″:”https://www.biggerpockets.com/blog/wp-content/uploads/2025/02/Fundrise-300×600-1.png”,”r320x50″:null,”r720x90Alt”:null,”r300x250Alt”:””,”r300x600Alt”:””,”r320x50Alt”:null},{“sponsor”:”Equity Trust”,”description”:”2″,”imageURL”:”https://www.biggerpockets.com/blog/wp-content/uploads/2025/01/1631355119223.jpeg”,”imageAlt”:””,”title”:”2″,”body”:”2″,”linkURL”:null,”linkTitle”:null,”id”:”67acbad06898b”,”impressionCount”:”2″,”dailyImpressionCount”:0,”impressionLimit”:”2″,”dailyImpressionLimit”:”2″,”r720x90″:null,”r300x250″:null,”r300x600″:null,”r320x50″:null,”r720x90Alt”:null,”r300x250Alt”:null,”r300x600Alt”:null,”r320x50Alt”:null},{“sponsor”:”Realbricks”,”description”:”2″,”imageURL”:”https://www.biggerpockets.com/blog/wp-content/uploads/2025/03/ga8i9pqnzwmwkjxsmpiu.webp”,”imageAlt”:””,”title”:”2″,”body”:”2″,”linkURL”:” https://realbricks.com?utm_campaign=9029706-BiggerPockets&utm_source=blog&utm_medium=banner_ad”,”linkTitle”:””,”id”:”67c5c41926c9f”,”impressionCount”:”102397″,”dailyImpressionCount”:”2787″,”impressionLimit”:”500000″,”dailyImpressionLimit”:”5556″,”r720x90″:”https://www.biggerpockets.com/blog/wp-content/uploads/2025/03/Blog-Banner-720×90-2.png”,”r300x250″:”https://www.biggerpockets.com/blog/wp-content/uploads/2025/03/Blog-Banner-300×250-1.png”,”r300x600″:”https://www.biggerpockets.com/blog/wp-content/uploads/2025/03/Blog-Banner-300×600-1.png”,”r320x50″:”https://www.biggerpockets.com/blog/wp-content/uploads/2025/03/Blog-Banner-320×50-1.png”,”r720x90Alt”:””,”r300x250Alt”:””,”r300x600Alt”:””,”r320x50Alt”:””}])”>
In This Article
With all of the headlines, noise, and confusion surrounding in the present day’s housing market, it’s simple to imagine issues are nonetheless damaged. However is that actually the case? May we really be in a wholesome housing market in 2025?
That’s the query I’ve been asking myself recently. And it began after studying a brand new piece by Logan Mohtashami—an analyst I’ve adopted and revered for years. Logan isn’t about hype or clickbait. He’s a knowledge man, via and thru, with a powerful forecasting monitor report. So when he revealed a headline claiming that “the housing market is really a lot more healthy in 2025,” it made me pause.
May that be true?
We’ve all been residing within the aftermath of a housing cycle that’s felt something however regular. Nonetheless, I made a decision to dig into the info, suppose it via, and work out the place we actually stand in the present day. Right here’s what I discovered.
Defining a “Wholesome” Housing Market
Earlier than we determine if we’re in a wholesome market, we have to outline what which means. I put collectively a scorecard of 5 key indicators that I imagine outline a wholesome housing market:
A stable stability between provide and demand
House costs typically preserving tempo with inflation
Wholesome transaction quantity (properties really promoting)
Cheap affordability for consumers
Low ranges of misery—few foreclosures and delinquencies
By this scorecard, the market hasn’t regarded wholesome for some time.
Let’s take into consideration the place we’ve been:
Provide and demand? Not even shut. We’ve been in a extreme sellers’ market since 2018.
Transaction quantity? Down 50% from 2022 ranges and 30% off regular baselines.
Affordability? Worst it’s been in 40+ years.
Misery ranges? Surprisingly low—that’s been the one shiny spot.
So, it’s no surprise lots of individuals discover the concept of a “wholesome” housing market fairly onerous to imagine.
However There Are Indicators of Life
Right here’s the place Logan’s argument begins to make sense. Some necessary information factors are shifting in the suitable route:
Pending house gross sales are up year-over-year regardless of greater mortgage charges.
Demand is holding regular and really rising YoY.
Stock is rising—32% greater than final 12 months, though nonetheless under 2019 ranges.
These are good indicators, and they align with what we’ve been monitoring in our month-to-month market updates. However optimistic motion doesn’t essentially equal a wholesome market. So, let’s return to the scorecard and take a contemporary look.
Housing Market Well being Scorecard – 2025
1. Stability Between Provide and Demand
Stock is rising. Days on market (DOM) is again to round 53, simply shy of the pre-pandemic common of 60. We’re getting nearer to a balanced market. If 2019 was the baseline for a “regular” 12 months, we’re approaching that once more.
Rating: Wholesome
2. Costs Holding Up With Inflation
Thus far, house costs are pacing inflation. That’s what we would like. Not booming. Not collapsing. Simply regular.
Rating: Wholesome
3. Transaction Quantity
This one’s nonetheless tough. We’re hovering round 4 million house gross sales yearly. That’s properly under the place we must be for a wholesome market.
Rating: Not Wholesome
4. Affordability
Nonetheless one of many weakest factors. House costs are excessive. Charges are excessive. Wages haven’t caught up. Till a kind of strikes, consumers are squeezed.
Rating: Not Wholesome
5. Misery and Delinquencies
This is the strongest sign of well being proper now. Foreclosures are nonetheless under 2019 ranges. Some early indicators of stress in FHA and VA loans, however total, delinquency charges stay low.
Rating: Wholesome
Ultimate Rating: 3 out of 5
That’s progress. Higher than the place we had been. A 12 months in the past, we had been most likely at 1 or 2 out of 5. So sure—by the numbers—we’re extra wholesome than we’ve been in years however nonetheless not fairly the place we wish to be.
You may also like
The place Issues Go From Right here
The 2 metrics nonetheless dragging us down—affordability and transaction quantity—are intently linked. If affordability improves, transaction quantity ought to observe. However how does that occur?
There are just a few choices:
Decrease mortgage charges
Greater wages
A worth correction (although that would jeopardize our worth/inflation stability)
Proper now, I don’t anticipate charges to fall dramatically within the subsequent few months. Costs would possibly stagnate a bit, however I don’t anticipate main declines. So I feel we’ll be on this “in-between” part slightly longer—one thing nearer to stability than chaos, however nonetheless not completely wholesome.
A Fast Phrase on Investing
Simply because a market isn’t “wholesome” doesn’t imply it’s a nasty time to speculate.
Actually, a few of the finest alternatives come when issues are unbalanced. I purchased my first property in 2010—hardly a textbook wholesome market. The identical goes for a lot of buyers in 2020–2021. These markets had been chaotic however extraordinarily worthwhile in the event you had the suitable technique.
The very best offers typically are available instances of uncertainty, and that’s what we’re seeing proper now. Extra stock, much less competitors, longer determination home windows. That’s excellent news for ready buyers.
In fact, I’d love to listen to your ideas—do you suppose the market’s more healthy than it was a 12 months in the past?
Analyze Offers in Seconds
No extra spreadsheets. BiggerDeals exhibits you nationwide listings with built-in money stream, cap charge, and return metrics—so you possibly can spot offers that pencil out in seconds.
Dave Meyer is an actual property investor and the VP of Information & Analytics at BiggerPockets. Observe him @thedatadeli.
In This Article
Trending Proper Now
![]()
