Latest / Markets with Megan: A Quick Financial Markets Update / Housing Prices Staying Hot or Getting Chilly? | S2 E061 | 07-29-25

Transcript

Housing Prices Staying Hot or Getting Chilly? | S2 E061 | 07-29-25 · Markets with Megan: A Quick Financial Markets Update

• 0:00
  Megan Horneman: We have further evidence that there's some signs of thawing in the housing market.
• 0:04
  Megan Horneman: It is Tuesday, july 29th, and this is Markets with Megan.
• 0:07
  Megan Horneman: If you like this podcast, please, you can subscribe.
• 0:10
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• 0:23
  Megan Horneman: But we're here as usual, regular basis, because we're getting economic data across a variety of different segments of the economy.
• 0:30
  Megan Horneman: So let's start with housing First.
• 0:33
  Megan Horneman: The S&P CoreLogic Home Price Index that we look at comes out with a couple month lag.
• 0:39
  Megan Horneman: So we're getting data here from May and actually home prices declined for the third consecutive month now.
• 0:45
  Megan Horneman: In May they were expected to fall, but they fell a little bit more than the expectation.
• 0:50
  Megan Horneman: When you look on a year-over-year pace, prices are now rising about 2.8% year-over-year.
• 0:58
  Megan Horneman: That's pretty low compared to what we've seen over the past couple years and that is the lowest annual price gains we've seen since 2023.
• 1:08
  Megan Horneman: Now let's break apart that monthly data and what we've seen across the different cities that are monitored.
• 1:13
  Megan Horneman: There's 20 different cities monitored and 12 of those cities actually declined in the month of May.
• 1:19
  Megan Horneman: It was led by price declines in Los Angeles, san Francisco and Seattle, so Western cities seeing the biggest decline.
• 1:26
  Megan Horneman: We did see some pretty steep increases in some of the East Coast cities.
• 1:31
  Megan Horneman: Look at Boston and New York.
• 1:32
  Megan Horneman: They led the increases.
• 1:33
  Megan Horneman: We also saw price gains in Cleveland.
• 1:37
  Megan Horneman: Now I know it may sound counterintuitive to say that price declines are positive, but the housing market has been in recession for several years now and that's because prices have been so high and supply has been so low In our markets.
• 1:51
  Megan Horneman: With Megan last week we talked about some of the data we received on housing sales and we've started to see inventories tick up a bit.
• 1:58
  Megan Horneman: This is good news.
• 1:59
  Megan Horneman: But as you see, more supply come in the market, prices fall.
• 2:03
  Megan Horneman: Now prices falling is good news for the Fed.
• 2:06
  Megan Horneman: It's good news for inflation, because housing does make up such a big component of our inflation indices.
• 2:12
  Megan Horneman: So while this may look negative on the headline, this is actually signs that some of those housing challenges may be subsiding here and we may get some pickup in the housing market over the next 12 months.
• 2:24
  Megan Horneman: If you want a further history of our podcast, you can go to marketswithmeganfm.
• 2:29
  Megan Horneman: Thank you.