Passive Impact: Real Estate Investing & Special Needs Housing
Welcome to "Passive Impact: Real Estate Investing & Special Needs Housing," where we explore how real estate investment can generate passive income while making a positive difference. Join host Sarah and Johnathon as they share strategies, success stories, and opportunities for investors looking to create financial stability and meaningful community impact. Also, Understand how you as a Real Estate investor make a positive difference in someone's life through Special Needs Housing for Adults with mild disabilities.
Passive Impact: Real Estate Investing & Special Needs Housing
Real Estate Reality Check: Housing in 2025
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The real estate market has hit its lowest point since 1995, with existing home sales dipping to around 4 million in 2024, creating uncertainty for potential buyers and sellers about what to expect in the coming year. We analyze insights from real estate broker Stephanie Birkin to help you understand mortgage rate trends, inventory challenges, and practical strategies for navigating the 2025 housing market with confidence.
• Mortgage rates expected to remain in the high 6% range with some easing in 2025, but don't anticipate a return to sub-4% rates
• Watch the 10-year Treasury yield, not just Fed announcements, to better predict mortgage rate movements
• Limited inventory persists due to homeowners locked into low rates, creating a real estate standoff with gradual improvement expected
• Buyers should complete pre-approval now, explore down payment assistance programs, and clearly define needs versus wants
• Demographic shifts show more cash buyers, older first-time buyers (median age 38), and more single female buyers entering the market
• Sellers should list in late February/early March and follow the PLANS framework: Price strategically, Light up your home, Ask an agent, Negotiate creatively, Stage for success
Visit flowersandassociatesboking.com/book to learn about our sponsor and check out Robert Flowers' latest book, "From Setback to Comeback: Finding your Resiliency in Tough Times."
Current Real Estate Market Overview
Speaker 1So you know, existing home sales in 2024, they dipped, you know, down to around four million.
Speaker 2Yeah.
Speaker 1And that's the lowest we've seen since 1995.
Speaker 2Really, Since 1995?.
Speaker 1Since 1995. Right, so if you're out there listening and you're thinking about making a move, you know you're probably like what the heck does this mean for me?
Speaker 2Yeah, what does this mean? Going forward.
Speaker 1Exactly, and that's what we're going to be diving into today, right? So we took a look at a recent Today Show segment and Stephanie Birkin, who's a real estate broker Okay, she was on there talking about you know her experience in this current market, and so we wanted to kind of take a deep dive into that. Yeah, try to get some clarity and give you a clearer picture about what we might expect in 2025, you know, for the real estate market.
Speaker 2Right, because I think a lot of people are wondering that.
Speaker 1Yeah, what can buyers and sellers really anticipate? What about mortgage rates, inventory and just some practical advice that you can use?
Speaker 2Absolutely.
Speaker 1Right. So we want to move beyond the speculation.
Speaker 2Yeah.
Speaker 1Give you some solid insights. Help you feel more informed about what's ahead.
Speaker 2Absolutely.
Speaker 1So, before we get into the details, though, I do wanna mention our sponsors. So today's Deep Dive is supported in part by Flowers and Associates Property Rentals.
Speaker 2Great company.
Speaker 1They actually focus on housing solutions for individuals with special needs.
Speaker 2Oh, very good, that's an important area.
Speaker 1Really important area and the company was actually founded by Robert Flowers.
Speaker 2Oh, Robert Flowers.
Speaker 1Yeah, longtime listeners will recognize that name.
Speaker 2Yes, yes, he's been on the show before.
Speaker 1He's been on some previous deep dives with us.
Speaker 2Yeah, he's great.
Speaker 1And Robert is also a respected author in the real estate field.
Speaker 2Yes, he is.
Speaker 1He's written several great books, including his latest book, from Setback to Comeback Finding your Resiliency in Tough Times.
Speaker 2Oh, I've heard about that one. I haven't gotten to read it yet, though.
Speaker 1Yeah, it's fantastic. You know, it offers a lot of valuable perspectives on things.
Speaker 2I'm going to check it out.
Mortgage Rates and Fed Policy Explained
Speaker 1Yeah, I recommend it. I'm going to check it out. Yeah, I recommend it. So you can find Robert's books on Amazon or you can learn more about Flowers and Associates at flowersandassociatesbookingcom. Forward slash book. Okay, and so we appreciate their support in bringing you this deep dive. Absolutely so let's jump into it.
Speaker 2Okay, let's do it.
Speaker 1So first up is, you know, this topic that I think is on a lot of people's minds right now Uh-huh, mortgage rates. Yes, I mean, it's been a roller coaster.
Speaker 2It has.
Speaker 1The report that that Stephanie referenced this morning puts them at around six point eight, seven five percent.
Speaker 2OK.
Speaker 1In the high sixes. All right. We even touched seven percent recently.
Speaker 2We did, I did.
Speaker 1So I think you know a lot of people out there like are we going to get back to those sub four percent interest rates?
Speaker 2Right, those were the days.
Speaker 1Right. So what did Stephanie have to say about that? What's the realistic outlook?
Speaker 2Well, she was pretty straight up, you know she's like look, expect a little bit of easing, you know going into 2025., but temper your expectations, ok. She said you know, plan as if they're going to stay in the high sixes and then you know if they go lower, that's a bonus, right. As for you know those crazy low rates that we were seeing before, she doesn't see that happening anytime soon.
Speaker 1Yeah, it's tough to think about that.
Speaker 2It is.
Speaker 1But you know, this brings up a point. I think that's really important. Okay, for people to understand about the market.
Speaker 2Uh-huh important.
Speaker 1Okay For people to understand about the market. You know, I think there's often this assumption that mortgage rates and the Federal Reserve rate cuts are kind of moving in lockstep Right. You know, you see headlines the Fed's lowering rates and people assume, okay, mortgage rates are going to drop too.
Speaker 2But Not necessarily.
Speaker 1It's not that simple, is it?
Speaker 2No, no, it's not that direct of a connection.
Speaker 1Right.
Speaker 2You know you have to look at the 10 year treasury yield. That's right, that's kind of the key.
Speaker 1That's a key factor and Stephanie really highlighted that. Yeah.
Speaker 2It's like the return that investors expect on these long term government bonds, you know.
Speaker 1Right. They're seen as relatively safe and because mortgages are also long term investments, their rates tend to follow. You know the trends of this benchmark. So, yeah, the Fed's actions. They have broader economic impacts, for sure. But, their direct effect on your mortgage rate is more indirect.
Speaker 2It's more of a ripple effect than a direct hit. That's a good way to put it Right.
Speaker 1So takeaway for you listening is pay attention to that 10-year treasury yield.
Speaker 2Absolutely, if you really want to have a better grasp of where those rates are headed.
Speaker 1Yeah, it's not just about the Fed announcement.
Speaker 2No, it's bigger than that Okay.
Speaker 1so let's shift gears a little bit. All right and talk about the situation with housing inventory. Okay, we know it's been tight.
Speaker 2Yeah.
Speaker 1But you know what are the underlying reasons for that?
Speaker 2And what does it mean for whether it's a better time to buy or sell right now? Well, stephanie, she pointed out, the big thing is you've got a lot of existing homeowners that are locked into these super low, sub 4 percent mortgage rates.
Speaker 1Right, they're sitting pretty.
Speaker 2Oh yeah. And they're thinking why would I sell now and have to buy something new at these much higher rates?
Speaker 1Right, you'd be giving up that incredible rate.
Speaker 2Exactly, and that's keeping a lot of those houses off the market.
Speaker 1Makes sense, and at the same time, though, you've got.
Speaker 2You've got all these buyers out there. Pent up demand who have been struggling with affordability.
Speaker 1Yeah, you know.
Speaker 2Right, and they're ready to jump in, but there just isn't much to choose from.
Speaker 1It's almost like a standoff then, isn't it?
Speaker 2It is. It's like a real estate stalemate. So what's the prediction for how this might evolve in 2025? Are we going to see a bunch of new listings hit the market? I don't think she sees that, you know, like a sudden flood of new listings. Ok, more like a gradual, steady improvement.
Speaker 1OK.
Speaker 2You know, as rates maybe ease up a little bit even if it's not a huge drop Right and as new construction projects get finished and add to the supply, we should see things get a little more balanced and stable. Okay, but no drastic overnight shifts. So no, housing market explosion no not that we can do More, like a slow and steady wins the race kind of thing, you know, those incremental improvements, like she said. That's the trend to watch. Okay, the good news is she thinks the hardest part is behind us.
Speaker 1Okay.
Speaker 2We've turned the corner.
Speaker 1You've turned the corner Good.
Speaker 2Yeah, heading toward more stability.
Speaker 1All right. So for those of you listening, you know, keep in mind that those existing homeowner rates, you know that's a big factor A huge factor. And it's influencing how many homes are actually out there.
Speaker 2Yes.
Speaker 1And the market might not, you know, do a complete 180 overnight.
Speaker 2Right.
Speaker 1But it does seem like we're moving in a more positive direction.
Speaker 2That's the hope.
Speaker 1So, if you're thinking about buying in 2025, what did Stephanie have to say about that? Like, what steps can you be taking now to prepare yourself?
Speaker 2OK. So her number one piece of advice, which I think is just so smart, is get a really clear picture of your finances right now, Like go through the whole pre-approval process as if you were actually applying for a mortgage today.
Speaker 1Wow, so really go through the whole process.
Speaker 2The whole thing that way. You know you got to get all your financial documents together. You know figure out which your liquid assets are. You know how much cash do you have on hand. What's your credit score looking like?
Speaker 1Right, it's like doing your homework before the test.
Speaker 2Exactly, and you know, once you do that, you'll have a much more realistic understanding of what you can actually afford.
Speaker 1That makes a lot of sense, right? So what other recommendations does she have for potential buyers?
Speaker 2So she talked about this thing that I think people don't always think about, which is assistance programs.
Speaker 1Oh OK.
Speaker 2There are programs out there that can actually help with down payments and closing costs.
Speaker 1I didn't realize that.
Speaker 2Yeah, and she also said it's super important to personalize your home search.
Speaker 1Okay, what does that mean?
Speaker 2Really think about you know what are your needs versus your wants. Okay, like what do you absolutely have to have in a home and what are things that would be nice but aren't deal breakers?
Speaker 1Right.
Speaker 2That'll help you narrow down your search and make those decisions faster when you do find something you like.
Speaker 1Okay, and of course you know staying informed about your local market.
Speaker 2Absolutely Got to know what's going on in your area.
Speaker 1Right, that's always important and you know thinking about our younger listeners. You know millennials and Gen Z.
Speaker 2Oh yeah, she had a great message for them.
Speaker 1Yeah, what was that?
Speaker 2She's like it's never too early to start saving.
Speaker 1OK.
Speaker 2Even if it's a small amount from each paycheck.
Speaker 1Right.
Speaker 2Over time that really adds up. Yeah, definitely makes a difference and she pointed out some shifts in buyer demographics.
Speaker 1Too right she did.
Speaker 2What were those? So she said, we're seeing more cash buyers these days.
Speaker 1Interesting.
Speaker 2Yeah, and the median age of first time buyers is up a bit. It's run 38 now.
Speaker 1Oh, so people are waiting longer to buy.
Speaker 2Seems like it, and we're also seeing a rise in single female buyers.
Speaker 1Really.
Speaker 2Yeah, they're actually outnumbering single male buyers in a lot of markets.
Speaker 1Wow, that's fascinating. I wonder if that's tied to broader economic trends.
Speaker 2It.
Speaker 1Yeah, okay. So if we're in a market where there's still a little bit of competition, what did she have to say about how buyers can make their offers stand out?
Advice for Potential 2025 Homebuyers
Speaker 2So she talked about this idea of warming up your offer.
Speaker 1Okay, warming up your offer.
Speaker 2Yeah, like buying a home. It's not just a financial transaction. It's often really personal for sellers.
Speaker 1Yeah, their home.
Speaker 2Exactly so she's like find ways to add a personal touch. Okay, you know, something genuine and appropriate that resonates with the seller beyond just the price.
Speaker 1Like what.
Speaker 2Well, you know, it depends on the situation, right, but maybe a letter talking about what you love about the house.
Speaker 1Okay.
Speaker 2Or how you can see your family living there.
Speaker 1Yeah.
Speaker 2Something that shows you're not just another buyer.
Speaker 1Right, you connect with it.
Speaker 2Exactly.
Speaker 1Okay, so for all you buyers out there thinking about 2025.
Speaker 2Here's the takeaway.
Speaker 1Get your finances in order. Investigate those assistance programs. Figure out your needs versus your wants.
Speaker 2Keep learning about your local market.
Speaker 1Yes, make saving a priority and think about how you can personalize your offer.
Speaker 2Yeah, great advice.
Speaker 1So now let's switch gears and talk about the sellers. Okay, you know. What insights did Stephanie share for those who might be thinking about selling in 2025?
Speaker 2All right. So for sellers, timing is key. Okay, she actually recommends listing your property in late February or early March.
Speaker 1Why that time frame?
Speaker 2So you're right, there at the start of the spring buying season, okay, and the weather's usually getting better, right? So more buyers are out looking at homes.
Speaker 1Makes sense.
Speaker 2But here's the thing she's like you got to be prepared. Okay, Start getting your property ready now.
Speaker 1Don't wait till the last minute. No procrastination allowed.
Speaker 2So what kind of advice did she have about getting your home ready to sell?
Speaker 1Okay, so she had this great acronym that I love it's PLANS. Plans Okay so the P stands for price. Strategically Okay, don't get greedy, don't overprice your home.
Speaker 2Right, even if you think you can get away with it.
Speaker 1Right.
Speaker 2Okay, what's L?
Speaker 1L is for light up the house.
Speaker 2Literally yeah. Increase the wattage of your light bulbs. Make sure every room is bright and welcoming it makes a big difference.
Speaker 1It does, it does. What about A?
Speaker 2A is for ask an agent.
Speaker 1Okay.
Speaker 2You know work with a good, experienced real estate agent.
Speaker 1Someone you trust.
Speaker 2Uh-huh, someone who knows your market.
Speaker 1What about N?
Speaker 2N is for negotiate creatively.
Speaker 1Okay.
Speaker 2Be open to different strategies, you know, beyond just the final sale price.
Speaker 1Right, think outside the box, exactly and finally S.
Speaker 2S is for stage for success.
Speaker 1Staging. We hear a lot about staging. Does it really make that much of a difference?
Speaker 2Oh, she says, it makes huge difference.
Speaker 1Huge difference Okay.
Speaker 2You know, presenting your home in the best possible light it really influences how buyers see it and what they're willing to offer.
Speaker 1So make it look good.
Speaker 2Make it shine.
Speaker 1Okay, so if you're thinking about selling in 2025.
Speaker 2Late February, early March.
Speaker 1Late February, early March, and start working on your plans now.
Speaker 2Get those plans in motion.
Speaker 1Price strategically, light it up. Ask an agent negotiate creatively. Stage for success.
Speaker 2Great advice.
Speaker 1So we've covered a lot today.
Speaker 2We have.
Speaker 1What are the big takeaways you think our listeners should really remember about the 2025 real estate market, based on what Stephanie shared.
Speaker 2So the key things to keep in mind are mortgage rates. We're expecting them to ease a bit, but don't expect them to go back to those record lows. Ok, it's safer to plan for those high sixes.
Speaker 1High sixes.
Speaker 2Yeah, Then you know, if they go lower, you're pleasantly surprised.
Speaker 1That's right.
Speaker 2As for inventory, you know it's still a little tight because of those homeowners that are locked into those lower rates, but we're seeing signs of a gradual shift towards a more balanced market.
Speaker 1Okay, slow and steady.
Speaker 2Exactly. And for buyers, you know, being financially prepared, exploring those assistance options, knowing your needs, those are all super important.
Speaker 1And for seller.
Speaker 2Strategic timing, you know, late winter, early spring, and then that careful preparation using the Planet Tech framework that's going to be key.
Speaker 1All right, so really good advice for both sides.
Speaker 2Yeah, lots to think about.
Speaker 1So, as you process all of this, you know you're thinking about these trends and mortgage rates and inventory Right and the advice for both buyers and sellers. Here's a final thought for you.
Speaker 2Okay, you know what's the most empowering step you feel like you can take, based on this information regarding your housing goals this year, that's a great question.
Speaker 1Are you actively planning to buy? Are you thinking about selling or do you just want to? You know, understand the real estate landscape a little better? Whatever your goal is, take a moment and think about that. One actionable step you can take right now.
Speaker 2Yeah, step you can take today.
Speaker 1To move forward with confidence and a clear plan.
Speaker 2With knowledge is power right.
Speaker 1That's right, that's right and that's what we try to do here on the Deep Dive.
Speaker 2Absolutely Give you the information you need to make the best decisions.
Speaker 1So thanks for joining us.
Speaker 2And happy house hunting.
Speaker 1Or selling.
Speaker 2Or just being informed.
Speaker 1All right, we'll see you next time on the Deep Dive.
Speaker 2Take care.
