Latest news with #BerkshireHathawayHomeServices
Miami Herald
10-08-2025
- Business
- Miami Herald
Warren Buffett's Berkshire Hathaway predicts major mortgage rate changes for 2026
The housing market has faced persistent headwinds over the past few years. When skyrocketing inflation and recession fears doubled mortgage rates from 3.5% to nearly 7% in 2022, it marked an end to the Covid-era housing boom. Years later, mortgage rates have remained stubbornly high while home prices surge, keeping the housing market gridlocked. Purchasing a home has become unattainable for many first-time homebuyers, while high rates and low demand have discouraged sellers from listing their homes. Don't miss the move: SIGN UP for TheStreet's FREE daily newsletter Although it may take longer than expected to recover, many housing experts now believe that mortgage rates will decline next year, leading to a modest market recovery in 2026. Berkshire Hathaway HomeServices recently released its real estate market forecast for Q4 2025, and the firm expects the housing market to soften. However, the market will likely face the same changes through the remainder of 2025. Many homebuyers have stayed on the sidelines, waiting for housing market conditions to improve before buying a home. Elevated mortgage rates, the rising cost of living, and saving for a down payment have continued to delay homeownership for many potential buyers. As a result, housing sales have been muted this year - even during the typically busy spring and summer seasons. Although mortgage rates are unlikely to fall notably this year, Berkshire Hathaway HomeServices expects overall market conditions to improve modestly next year. More on homebuying: The White House will take surprising approach to curb mortgage ratesHousing expert reveals surprising ways to reduce your mortgage rateDave Ramsey predicts major mortgage rate changes are coming soonWarren Buffett's Berkshire Hathaway sounds the alarm on the 2025 housing market "While forecasts suggest a softening housing market, most economists believe that home prices are unlikely to fall dramatically," the Berkshire Hathaway HomeServices blog noted. "Instead, they expect prices to continue rising - just at a slower pace. Slightly lower rates might encourage buyers to act, especially if more sellers list homes to beat any potential price correction. That could increase inventory and put downward pressure on prices." Related: White House advisor clashes with Fed on mortgage rates, housing market Despite initial projections of mortgage rates inching toward 6% in 2025, rates will still hover between 6.5% and 7% by the end of this year. While there is hope for improvement in 2026, it will likely be moderate. "As for the forecast for Q4 2025, most housing experts agree that meaningful relief may not arrive until 2026 or later, as mortgage interest rates are unlikely to decline significantly." Lack of affordable housing inventory has plagued the market for years, feeding into the current market gridlock. Homebuyers are competing for a limited number of houses within an affordable range, pricing out many Americans in the process. However, conditions are improving, as Redfin recorded sustained inventory growth in May, with sellers outnumbering buyers by nearly 500,000. "Lack of supply was among the reasons why housing is so expensive, so with more homes for sale, will housing prices come down? There's a good chance they will, but not uniformly across the U.S.," the blog continued. While the projected slowed home price growth will likely stimulate the housing market, it may produce lopsided growth. "Still, a major issue remains: the lack of affordable homes, especially for first-time and lower-income buyers. According to NAR, in Q1 2025 only 1 in 5 listings were affordable to households earning $75,000 - compared to half of all listings before the pandemic. To restore affordability, the U.S. would need to add over 400,000 listings priced at $255,000 or below - and even that may fall short of what's needed." There is clear demand for mid-range, affordable homes, but tariff-fueled price hikes on building materials may make it difficult to achieve. Related: Warren Buffett's Berkshire Hathaway predicts major housing market shift soon The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Miami Herald
20-07-2025
- Business
- Miami Herald
Warren Buffett's Berkshire Hathaway predicts major housing market shift soon
First-time homebuyers have struggled with the housing market over the last few years, as affordability worsened and the supply of available homes dwindled. The majority of those shut out from the housing market have been younger buyers, preventing Gen Z and Millennials from reaching a key financial milestone. However, Baby Boomers have faced a more predictable and buyer-friendly housing market - with the exception of the 2008 subprime mortgage crisis. Don't miss the move: SIGN UP for TheStreet's FREE daily newsletter Now that the majority of Baby Boomers are approaching retirement and considering selling their homes to relocate, experts note it could up-end the housing market. Though high mortgage rates and stagnant housing activity have impacted older generations, younger generations have borne the brunt of the increasingly expensive housing market. Berkshire Hathaway HomeServices predicts that retired homeowners looking to downsize will compete with first-time homebuyers for smaller and more affordable homes. Affordability is the main barrier to homeownership for younger homebuyers, but many note that if mortgage rates dipped below 6%, it would improve conditions enough for them to buy a home. Although housing inventory levels are improving, many sellers are still holding off on listing their home until mortgage rates drop further, keeping the market in a holding pattern. "They [Baby Boomers] accumulated significant equity from staying in their homes and paying down their mortgages and benefiting from escalating home prices over the course of 13 to 16 years," The Berkshire Hathaway HomeServices blog wrote. "Just in the last five years, nationwide home prices have risen 47%. Yet, many boomers who remain in their homes have little financial motive to sell in a higher interest rate environment." More on homebuying: The White House will take surprising approach to curb mortgage ratesHousing expert reveals surprising ways to reduce your mortgage rateDave Ramsey predicts major mortgage rate changes are coming soonWarren Buffett's Berkshire Hathaway sounds the alarm on the 2025 housing market However, experts anticipate that when Baby Boomers finally decide to relocate for retirement and sell their homes en masse, Berkshire Hathaway HomeServices believes it will worsen the housing affordability crisis for younger generations. "As Boomers sell their homes and purchase smaller homes with cash, they are inadvertently making it harder for first-time and lower-income homebuyers to compete." Millennials and Gen Z will need to compete for homes with senior Baby Boomers, Gen Xers approaching retirement, and even institutional investors like Blackstone, which owns upwards of 60,000 residential single-family homes in its portfolio. "Along with institutional and foreign housing investors who intend to buy and hold or rent out the homes they purchase, Boomers are contributing to higher home prices by reducing inventories of smaller, newer, and/or more affordable inventory." As Baby Boomers age, they are expected to leave behind homes that many prospective buyers won't be able to afford. This could shake the already tenuous housing market, as demand among older and younger homebuyers shifts toward smaller and affordable homes. Berkshire Hathaway HomeServices notes that as Baby Boomers enter their golden years, they will no longer be able to manage large, expensive homes. Related: Bank of America predicts major housing market changes are coming soon "What boomers will leave behind as they vacate their homes, whether for alternative lifestyles such as assisted living, long-term care homes, and multigenerational living, or through loss of life, is a growing inventory of unoccupied homes and homes for sale," the blog continued. As affordability deteriorates and expensive home listings sit idle, housing experts worry that widespread surplus could implode market pricing. "Between 13.1 and 14.6 million boomers will abandon homeownership from 2026-2036, raising housing industry fears that such a large inventory of homes could lead to price collapses." Related: Veteran fund manager unveils eye-popping S&P 500 forecast The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
New York Post
17-07-2025
- Entertainment
- New York Post
Michael Scott's home from 'The Office' has found a buyer
That's what she sold! A condominium made famous by 'The Office' is poised to welcome a new owner after hitting the market for the first time in nearly 20 years. Listed for $710,000 in April, the three-bedroom, three-bath unit in Reseda, California, went into pending sale status on July 1, The Post has learned. While final closing details have yet to be disclosed, the seller's agents confirmed that the home is under contract at full asking price and that they are continuing to accept backup offers. Though the mockumentary sitcom was set in Scranton, Pennsylvania, exterior shots of the character Michael Scott's condo, played by Steve Carell, were filmed at 126 Kellum Court in the Kellum Court complex, a gated community in suburban Los Angeles. 9 The real-life condo that doubled as Michael Scott's home in 'The Office' — and the setting of the show's most memorably awkward dinner party — is under contract, nearly two decades after its last sale. Berkshire Hathaway HomeServices 9 Michael Scott and Dwight Schrute, played by Steve Carell and Rainn Wilson stand in front of the condo. The property featured prominently in several episodes of the NBC series, including 'Fun Run,' 'Dream Team,' and fan-favorite 'Dinner Party,' the latter of which Variety once ranked as the greatest episode of the entire series. According to director Paul Feig, who discussed the set choice during an appearance on the 'Office Ladies' podcast, the condo was selected for its 'flow' and 'openness' — qualities that ultimately made it an ideal location for one of the show's most uncomfortably hilarious scenes. Romeo and Susan Guevara of Berkshire Hathaway HomeServices held the listing. 9 Though the series was set in Scranton, Pennsylvania, the actual property sits in a gated LA complex once home to Johnny Depp and M. Night Shyamalan, according to the listing. Berkshire Hathaway HomeServices 9 Michael Scott buys a condo in the second season, episode 3 of 'The Office.' 9 The living room. Berkshire Hathaway HomeServices The Guevaras told The Post that open-house attendees were quick to make the on-screen connection. 'There were a few that visited the first open house [after they] saw the entry on the MLS state the home's claim to fame was that it was the venue for the dinner episode of 'The Office',' they told The Post. 'Then they recognized the place.' The 1,458-square-foot home, described in the listing as a 'very clean, well kept, turn-key home,' includes direct access to a two-car garage and a private patio. HOA fees of $550 per month cover yard maintenance, controlled gate access and earthquake insurance — standard fare in a region that sees regular seismic activity. 9 The 'Dinner Party' episode was aired during the fourth season. ©NBC/Courtesy Everett Collection While the show's producers took viewers to northeastern Pennsylvania, the real-life setting lies an hour northwest of downtown Los Angeles, in a 36-unit development that has attracted some notable names. According to the listing, past neighbors have included Johnny Depp and director M. Night Shyamalan. The Guevaras noted that the home's pop-culture cachet has helped drive interest. 'The seller mentioned to me that one of the homeowners bought one of the houses specifically because of 'The Office,' being in the same complex as the famous house.' 9 The kitchen. Berkshire Hathaway HomeServices 9 Agents say buyers recognized the condo from its cameo, with at least one homeowner in the complex having moved there specifically for its connection to 'The Office.' ©NBC/Courtesy Everett Collection 9 One of three bedrooms. Berkshire Hathaway HomeServices The unit last sold in 2005 — coinciding with the US premiere of 'The Office' — for approximately $490,000. The current asking price of $710,000 falls within Zillow's estimated value range of $656,477 to $736,000. In 2022, a nearly identical unit in the same complex sold for about $755,000, The Post previously reported.
Miami Herald
29-06-2025
- Business
- Miami Herald
Warren Buffett's Berkshire Hathaway predicts mortgage rate changes will stir housing market
Homebuyers have navigated an unpredictable housing market over the past few year, experiencing rising home prices and stubborn mortgage rates. Many young Americans have chosen to delay homeownership until affordability improves, and some have given up on the idea entirely. Despite Covid-related uncertainty during 2020 and 2021, mortgage rates hit historical lows below 3%, prompting many buyers to take advantage of a more accessible housing market. The early pandemic housing boom raised housing prices and was followed by intensified inflation in 2022, which pushed housing costs up even further. Don't miss the move: SIGN UP for TheStreet's FREE daily newsletter Now, as mortgage rates continue edging closer to 7%, expectations for a strong summer market rebound have cooled. Homebuyers value affordable housing options now more than ever, especially as mortgage rates fluctuate. While the outlook for the rest of the year is uncertain, experts suggest that homebuyers will remain hesitant, despite increased bargaining power. Berkshire Hathaway HomeServices highlights that homebuyer demand will continue to shift as mortgage rates fluctuate. The one constant is that buyers are seeking affordable housing options as the cost of living rises - and are willing to hold out until the outlook improves. Consumer prices have yet to come down after inflation surged in 2022, making it more difficult for Americans to make ends meet while saving for major financial milestones. The majority of aspiring homebuyers note that saving for a down payment is a significant barrier to homeownership. To secure a more affordable home, 29% would be willing to downsize, and 24% would be willing to move out of state. However, despite predictions from Redfin that housing prices will drop by the end of 2025, many find that rising costs and stagnating wages will keep the real cost of homeownership unmanageable. More on homebuying: The White House will take surprising approach to curb mortgage ratesHousing expert reveals surprising ways to reduce your mortgage rateDave Ramsey predicts major mortgage rate changes are coming soonWarren Buffett's Berkshire Hathaway sounds the alarm on the 2025 housing market The Berkshire Hathaway HomeServices blog notes that affordability is becoming increasingly important for first time buyers, as homeownership becomes more unattainable. "For most homebuyers, choosing a home comes down to affordability - which may mean compromising on location, size, age, or amenities. Many first-time buyers opt for smaller homes in more affordable markets but still expect them to be in good condition and free from major repair needs." A clear trend has emerged in the wake of constantly fluctuating mortgage rates: homebuyer demand will rise and fall with housing market swings. The Berkshire Hathaway HomeServices underscores that, "With sky-high home prices, tariff-induced inflation fears and mortgage interest rates escalating, along with recent stock market losses, homebuyers are more cautious." Related: Warren Buffett's Berkshire Hathaway expects housing market price changes soon Unpredictable mortgage rates aren't helping restore confidence in the housing market - any progress made in enthusiasm and housing sales is often diminished as rates start to creep back toward 7%. Citing concerns from the National Association of Realtors, the blog explains that mortgage rates changes, economic uncertainty, and general housing market pessimism will become key factors in shaping market activity. "Chief Economist Lawrence Yun commented that homebuyers are acutely sensitive to even minor fluctuations in mortgage rates. Homebuyers may add an interesting see-saw effect to summer housing sales, as they jump in or pull back on economic news." Related: Veteran fund manager unveils eye-popping S&P 500 forecast The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Miami Herald
14-06-2025
- Business
- Miami Herald
Warren Buffett's Berkshire Hathaway expects housing market price changes soon
Homebuyers have faced a turbulent housing market over the past few years. Rising home prices and elevated mortgage rates have forced many Americans to reconsider or postpone homeownership until conditions become more affordable. In 2020 and 2021, home prices skyrocketed as moving patterns shifted from cities and homebuyers began to take advantage of record-low mortgage rates below 3%. After the initial Covid-era housing boom, surging inflation in 2022 exacerbated housing prices that were already on the rise. Don't miss the move: SIGN UP for TheStreet's FREE daily newsletter As mortgage rates inch back toward 7%, homebuyers have tempered their expectations for a strong 2025 housing market rebound, but rising home inventory may be enough to lure them back to the market. Though the outlook for the second half of the year is uncertain, many experts believe that homebuyers will have more options and negotiating power as listings take longer to sell. Berkshire Hathaway Home Services believes there may be a shift in the housing market, offering advice for how buyers and sellers can navigate prices in the midst of continued market swings. Image source: Shutterstock Years of rising mortgage rates have created a housing market stalemate where sellers became hesitant to list their homes, creating a supply shortage and increasing competition among homebuyers. Many first-time homebuyers have been collateral damage, forced to delay or rethink homeownership entirely. Eventually, buyer demand has weakened enough to the point that housing inventory reached a surplus of over 500,000 homes, the highest level since 2013. Now, housing conditions have completely shifted, creating a buyer's market for the first time in years. For sellers to keep their listings competitive, Berkshire Hathaway Home Services suggests they may need to implement price reductions. More on homebuying: The White House will take surprising approach to curb mortgage ratesHousing expert reveals surprising ways to reduce your mortgage rateDave Ramsey predicts major mortgage rate changes are coming soonWarren Buffett's Berkshire Hathaway sounds the alarm on the 2025 housing market The blog recommends that sellers examine home prices in their area and look at home sales trends over the past few months. "Accept the current market. Ask for an updated comparative market analysis with detailed sales trends over the last three months. Are home sales slowing or accelerating? Are home prices rising or falling? Price your home slightly under the trends." found that home listings spent an average of 51 days on the market in May, up from 45 days in May 2024 but on par for the pre-Covid housing market. However, the number of unsold homes is up 21% from last year, marking a considerable change in sales trends. In March, which is typically the onset of renewed buyer demand during the spring housing market, 23% of home listings received a price reduction. Now, as housing inventory rises, sellers are losing the upper hand and may need to lower their pricing expectations. Related: Fannie Mae predicts major mortgage rate changes are coming soon The Berkshire Hathaway Home Services blog wrote that, "A price reduction should send the right message to the marketplace - that your home is well worth its asking price." It also suggests that sellers may need to put in more effort to draw in buyers and close sales. "Pay for professional staging and photography to showcase your home to better advantage online. Highlight the charms and special features of your home as well as the neighborhood." While this may not be the shift sellers were hoping for, a more favorable environment for buyers may be enough to motivate housing activity and undo the current gridlock. Related: Veteran fund manager unveils eye-popping S&P 500 forecast The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
