Mortgage rates are down, so the housing market should be entering a frenzy…right? Not quite. The buyer’s market seems alive and well, with sellers offering concessions as the housing market visibly “slows.” What’s causing it? New inventory hitting the market? Tariff talks leading to higher housing costs? We’re getting into it all in this episode as we hit on four of last week’s top headlines.

First, how much will a new home cost now that tariffs are in place? With lumber, labor, and material prices all rising, there could be a five-figure added cost per home for homebuilders, making it even more expensive for buyers. Will labor costs continue to rise in 2025 after years of solid growth, or will renovators and flippers finally get relief?

The housing market is slowing down even as we get closer to the spring homebuying season. Home prices are DOWN year-over-year, but one caveat makes this a half-truth. With more inventory hitting the market, buyers could have their pick! And that inventory could grow even greater as mortgage delinquencies start to rise—should we begin to worry? Enough speculation; let’s get into it!

In This Episode We Cover

How much more a new home will cost with the 2025 tariffs now put in place

A worrying statistic about mortgage delinquencies investors must pay attention to

Labor and material cost predictions for 2025: Can they keep rising?

Updated housing inventory metrics and why sellers are struggling, ready to give concessions

Why Henry really needs a hug this week

And So Much More!

Links from the Show

Join the Future of Real Estate Investing with Fundrise

Join BiggerPockets for FREE

Sign Up for the On the Market Newsletter

Find Investor-Friendly Lenders

Dave's BiggerPockets Profile

Henry's BiggerPockets Profile

James' BiggerPockets Profile

Kathy's BiggerPockets Profile

On The Market 301 - Mortgage Rates Fall EVEN Further as “Tariff Tuesday” Triggers Stock Sell-Off

Here’s how tariffs will hit the U.S. housing market

Construction Industry Cost Insights for Q1 2025

Realtor’s February 2025 Monthly Housing Market Trends Report

Mortgage Delinquencies Increase in the Fourth Quarter of 2024

Case-Shiller Index

Grab Henry’s Book, “Real Estate Deal Maker”

Jump to topic:

(00:00) Henry Needs a Hug

(02:23) Homes Could Cost $10K More 

(08:04) Construction Prices Rise 

(11:36) The Market SLOWS Down 

(19:55) Mortgage Delinquencies Are UP

Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/on-the-market-302

Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email [email protected].

Learn more about your ad choices. Visit megaphone.fm/adchoices