Wealth Building Through Real Estate

November 10, 2025 • Finance

Hosted by Dusty

About This Episode

Generated finance podcast with host Dusty based on prompt: Weekly Residential Real Estate updates with focus on long term wealth via real estate.

Transcript

Welcome to "Wealth Building Through Real Estate," where we dive into the latest trends and insights that can help you navigate the real estate market successfully. I'm Dusty, your host, ready to unpack this week's developments. Let's dive right in.

Kicking things off with mortgage rates, as of November 6, the average 30-year fixed-rate mortgage sits at 6.22%, up slightly from last week. The 15-year fixed rate saw a similar uptick, reaching 5.50%. These rates are still among the lowest we've seen this year, offering some relief to buyers and encouraging refinancing activity despite ongoing affordability challenges.

Looking at inventory dynamics, we've observed a 1.3% decline in national active single-family inventory. This is part of the seasonal slowdown, but it's still 16.5% higher than last year. However, we're 6.2% below the same period in 2019, which keeps pressure on home prices. Builders have accumulated completed homes at levels not seen since 2009, pushing them to offer incentives to buyers.

Now, let's talk about homebuilders and their financial health. PulteGroup reported a Q3 net income of $586 million, fueled by home sale revenues of $4.2 billion across over 7,500 closings. Despite a drop in gross margins, they've managed to keep production robust. Lennar delivered more than 21,500 homes with a significant number of new orders, although market incentives are trimming their margins.

D.R. Horton, the largest U.S. builder by volume, reported a Q3 net income of $1 billion, a 24% decrease from last year. Despite exceeding delivery guidance, their margins have tightened due to aggressive buyer incentives. They're also focusing on shareholder returns, having repurchased millions of shares this quarter.

Shifting gears to the REIT and stock performance scene, Equity Residential shares fell 1.79% on November 6. This was a steeper decline than some peers, amid a broader market dip led by the S&P 500. D.R. Horton's stock also declined by 2.70% amid sector pressure, reflecting a cautious investor sentiment in the multifamily space.

Regionally, Connecticut saw a 3% rise in home sales last month, with median sale prices climbing to $425,000. The limited new listings and homeowners’ reluctance to move have kept supply tight, thus driving prices up. Nationally, the FHFA House Price Index noted a 0.4% rise in U.S. single-family home prices as of August, with year-over-year growth continuing.

So, what does this mean for future strategies? With mortgage rates near their lows and builders offering incentives like buydowns, buyers have an edge. The winter months, typically quieter, could be an ideal time to purchase or sell. It's all about patience and choosing the right moment and market to unlock long-term equity gains.

That's all for this week's insight into the residential real estate market. I hope you found it valuable and that it helps you make informed decisions in your real estate endeavors. Remember, when the dust settles, only the truth remains. Until next time, keep building your wealth wisely.

## Weekly Residential Real Estate Market Update (Nov 3–9, 2025)

### Mortgage Rates and Financing Conditions
As of November 6, 2025, the average 30-year fixed-rate mortgage (FRM) stood at 6.22%, up from 6.17% the prior week, while the 15-year FRM averaged 5.50%, up from 5.41% the week of October 30. These rates remain near their 2025 lows, offering a modest reprieve for buyers and supporting refinancing activity in a market still grappling with affordability challenges ([freddiemac.com](https://www.freddiemac.com/pmms/pmms_archives?utm_source=openai)).

### Inventory Dynamics
National active single-family inventory declined 1.3% week-over-week as of November 3, reflecting the seasonal pullback typical of the fall market, yet remains 16.5% above last year’s level and 6.2% below the same week in 2019. This tighter supply compared to pre-pandemic years continues to underpin home prices, even as builders accumulate unsold completed homes at levels not seen since 2009, pressuring margins and prompting incentives ([calculatedriskblog.com](https://www.calculatedriskblog.com/2025/11/housing-november-3rd-weekly-update.html?utm_source=openai)).

### Homebuilder Earnings and Production
PulteGroup (PHM) reported Q3 2025 net income of $586 million, or $2.96 per share, on home sale revenues of $4.2 billion across 7,529 closings. Gross margin narrowed to 26.2% from 28.8% a year earlier as the builder managed production volumes and buyer incentives. Net new orders in Q3 totaled 6,638 homes, with a backlog of 9,888 homes valued at $6.2 billion, and $300 million of share repurchases completed in the quarter ([pultegroup.com](https://www.pultegroup.com/investor-relations/news/news-details/2025/PulteGroup-Reports-Third-Quarter-2025-Financial-Results/default.aspx?utm_source=openai)). Lennar (LEN) delivered 21,584 homes in Q3, generating net earnings of $591 million ($2.29 per diluted share). The builder recorded 23,004 new orders, a 17.5% home sale gross margin, and SG&A expenses at 8.2% of revenues, highlighting the impact of market incentives on profitability ([newsroom.lennar.com](https://newsroom.lennar.com/2025-09-18-Lennar-Reports-Third-Quarter-2025-Results?utm_source=openai)).

### D.R. Horton’s Third-Quarter Results
D.R. Horton (DHI) reported Q3 fiscal net income of $1.0 billion, or $3.36 per diluted share, down 24% from a year earlier, on revenues of $9.23 billion and 23,160 home closings. The largest U.S. builder by volume exceeded guidance on home deliveries but saw gross margins compress to 21.8% amid elevated buyer incentives. In Q3, the company repurchased 9.7 million shares for $1.2 billion and declared a quarterly dividend of $0.40 per share, underscoring its commitment to shareholder returns despite demand headwinds ([investing.com](https://www.investing.com/news/company-news/dr-horton-reports-18-drop-in-q3-earnings-per-share-93CH-4145319?utm_source=openai)).

### REIT and Stock Performance
Shares of Equity Residential (EQR) declined 1.79% on November 6 to close at $58.70, underperforming broader REIT peers—AvalonBay Communities (-1.41%), UDR Inc. (-1.75%), and Mid-America Apartment Communities (-1.14%)—as the S&P 500 fell 1.12% on the same day. Trading volume for EQR was 2.5 million shares, slightly above its 50-day average, reflecting investor caution in the multifamily sector ([marketwatch.com](https://www.marketwatch.com/data-news/equity-residential-stock-underperforms-thursday-when-compared-to-competitors-898ad820-96e35300b18f?utm_source=openai)). On November 3, D.R. Horton’s stock also underperformed, falling 2.70% to $145.06 amid sector-wide pressure, trading 4.2 million shares against a 50-day average of 3.4 million ([marketwatch.com](https://www.marketwatch.com/data-news/d-r-horton-inc-stock-underperforms-monday-when-compared-to-competitors-4c12329f-0e6fafeba9cc?utm_source=openai)).

### Regional Price Trends
In Connecticut, home sales rose 3% in October 2025 to 3,220 transactions, while the statewide median sale price climbed to $425,000, up from $400,000 a year earlier. Limited new listings and homeowners’ reluctance to give up low-rate mortgages have kept supply tight, with price growth driven by constrained inventory rather than demand spikes ([ctinsider.com](https://www.ctinsider.com/realestate/article/connecticut-home-sales-residential-real-estate-21137725.php?utm_source=openai)). Nationally, the FHFA House Price Index reported that U.S. single-family home prices rose 0.4% in August 2025 and were up 2.3% year-over-year through August, with regional gains ranging from -0.8% in the Pacific to +1.2% in the Middle Atlantic division ([fhfa.gov](https://www.fhfa.gov/reports/house-price-index/2025/10?utm_source=openai)).

### Outlook and Long-Term Wealth Strategies
With mortgage rates hovering near 2025 lows, historically low inventory, and builders offering incentives such as buydowns to 3.99%, prospective buyers hold greater negotiating power. However, broader economic uncertainty and job market concerns are tempering demand. Freddie Mac advises that winter can be an opportune season to buy or sell, as competition slows and motivated sellers emerge, potentially unlocking long-term equity gains for patient investors ([wsj.com](https://www.wsj.com/economy/housing/builders-are-offering-mortgage-rate-discounts-home-buyers-arent-biting-eec17f9e?utm_source=openai)). For long-term wealth, focusing on purchasing during seasonal lulls, securing competitive financing, and targeting markets with balanced supply–demand fundamentals remains key to building equity in residential real estate.

Wealth Building Through Real Estate