Wealth Building Through Real Estate

December 15, 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." I'm Dusty, your guide through the exciting—and sometimes unpredictable—world of real estate. Today, we'll journey through the latest trends, talk numbers, and discuss strategies to help you build lasting wealth. So, let's jump in.

First, let's take a look at the current market panorama. As we approached December 2025, new listings for U.S. homes have seen their sharpest annual decline in over two years. With a 1.7% drop in listings and a 4.1% slide in pending home sales, homes are taking longer to sell—about a week more compared to late 2024. Despite these trends, tight inventory has nudged median sale prices up by 2% year-over-year, even as demand appears to soften.

Mortgage rates have been a mix of relief and constraint. We've seen a slight dip—down to 6.19% for a 30-year fixed mortgage, offering a bit of breathing room for potential buyers. These lower rates are sparking interest in adjustable-rate mortgages and refinancings, pushing mortgage applications to their highest in three years.

The forecast for 2026 hints at a steady ride. We expect average mortgage rates around 6.3%, paired with modest home price growth. And with rising household incomes, housing costs should drop below 30% of income, potentially widening access to homeownership. Plus, a projected 9% rise in inventory could ease those supply constraints, giving buyers more wiggle room.

On the investor front, their presence remains strong. Investors accounted for nearly one-third of single-family home purchases this year, holding steady at about 85,000 homes per month. Medium-sized investors have increased their market share, while small investors remain the largest group. Cities like Dallas, Houston, and Atlanta have been hotspots for investor activity, yet regional dynamics vary.

Speaking of regional differences, we've seen varied price trends across the U.S. While cities like New York and Chicago saw price gains, San Diego, Seattle, and Austin faced declines. Local supply and demand intricacies continue to shape these outcomes.

Looking ahead to 2026, several U.S. metros offer promising opportunities for investors and homebuyers alike. Cities such as Charleston, Charlotte, and Columbus are expected to outperform national averages in home sales and price appreciation. With strong job growth, migration patterns, and appealing interest rates, these areas present welcoming horizons for long-term investments.

As we wrap up today's discussion, it's worth noting the importance of aligning investments with market shifts, particularly in metros poised for growth. By staying informed about the latest inventory trends, mortgage rate changes, and regional price movements, investors can strategically position themselves for success.

Thank you for tuning into "Wealth Building Through Real Estate." Remember, when the dust settles, only the truth remains. Until next time, I'm Dusty, wishing you insightful investing and prosperous gains.

## Market Inventory and Listings

New listings of U.S. homes for sale continued their seasonal moderation in the four weeks ending December 7, 2025, falling 1.7% year-over-year—the steepest annual decline in over two years. Pending home sales likewise slid 4.1% compared to the same period last year, marking the sharpest ten-month drop, and the typical home under contract now takes 51 days to sell—about one week longer than in late 2024. Despite this supply contraction, median sale prices climbed 2% year-over-year, buoyed by inventory tightness even as buyer demand softens. Mortgage rates have eased slightly to their lowest levels in more than a year but remain above 6%, continuing to constrain many prospective buyers. ([worldpropertyjournal.com](https://www.worldpropertyjournal.com/real-estate-news/united-states/seattle/real-estate-news-home-listings-data-december-2025-redfin-december-2025-housing-report-josh-felder-2025-housing-inventory-data-14627.php))

This pullback in new listings underscores a growing caution among potential sellers. According to Redfin, some homeowners are choosing to “sit tight” into 2026 to gauge how mortgage rates, equity markets, and trade policies evolve. As a result, the housing market is navigating elevated selling costs and economic uncertainty heading into the new year, even as buyers weigh affordability challenges against historically elevated home prices. ([worldpropertyjournal.com](https://www.worldpropertyjournal.com/real-estate-news/united-states/seattle/real-estate-news-home-listings-data-december-2025-redfin-december-2025-housing-report-josh-felder-2025-housing-inventory-data-14627.php))

## Affordability and Mortgage Rates

Mortgage rates have shown modest relief in early December, providing a slight boost to affordability. For the week ending December 4, the average 30-year fixed mortgage rate dipped to 6.19%, down from 6.23% the previous week and 50 basis points lower than a year ago. Similarly, 15-year fixed rates averaged 5.44%, improving from 5.51% and nearly 60 basis points below last December’s levels. This softer rate environment has driven mortgage purchase applications to their highest levels in three years, particularly for adjustable-rate mortgages and refinancings. ([linkedin.com](https://www.linkedin.com/pulse/daily-dose-real-estate-december-8-tim-rood-gxdpe?utm_source=openai))

Industry forecasts suggest these lower borrowing costs will support a more balanced market in 2026. Realtor.com’s 2026 national housing forecast projects average mortgage rates of 6.3% alongside modest home price growth of 2.2%. With household incomes expected to outpace inflation, borrowers’ share of income devoted to housing costs is forecast to fall below 30%—its lowest level since 2022—potentially broadening access to homeownership. At the same time, for-sale inventory is projected to rise nearly 9% year-over-year, easing supply constraints and giving buyers more opportunities to shop. ([blog.coldwellbanker.com](https://blog.coldwellbanker.com/re-market-pulse-week-of-december-8-2025/?utm_source=openai))

## Investor Activity Dynamics

Investors have maintained a significant presence in the single-family market throughout 2025, accounting for nearly one-third of all purchases. According to Cotality, investors represented 29% of single-family home purchases in June—down slightly from a 32% peak in January but still above the 25% share recorded in June 2024. Although absolute investor volumes have held steady at roughly 85,000 homes per month (comparable to 2024 levels), the investor share has risen as owner-occupant activity remains muted by affordability pressures. Medium-sized investors (owning 10–99 properties) saw their market share climb from 6% to 10% year-over-year, while small investors (<10 homes) remain the largest cohort at 14% of purchases. ([worldpropertyjournal.com](https://www.worldpropertyjournal.com/real-estate-news/united-states/irvine/real-estate-news-2025-investor-home-buyer-data-cotality-2025-investor-home-buyer-report-thom-malone-wall-street-buyers-of-homes-in-2025-14623.php))

Regional patterns reveal Dallas, Houston, Atlanta, Phoenix, and Los Angeles as the top five metros by total investor purchases in the first half of 2025. However, when evaluated by investor share rather than volume, only Atlanta and Los Angeles feature in both top-five lists, illustrating how robust owner-occupant demand in certain markets can dilute investor impact. Seasonally, investor participation tends to rise in winter months—suggesting that their share is likely to stay between 25% and 30% through the end of 2025—absent major shifts in interest rates or macroeconomic conditions. ([worldpropertyjournal.com](https://www.worldpropertyjournal.com/real-estate-news/united-states/irvine/real-estate-news-2025-investor-home-buyer-data-cotality-2025-investor-home-buyer-report-thom-malone-wall-street-buyers-of-homes-in-2025-14623.php))

## Regional Price Trends

National inventory levels have returned to roughly pre-pandemic norms, topping one million active listings. Yet housing affordability and price trajectories differ markedly by region. As of December 1, 2025, Zillow data shows:

- New York City: Median home price of $799,900, up 3.1% year-over-year
- Chicago: $308,300, up 1.8%
- San Diego: $979,900, down 4.2%
- Seattle: $841,000, down 2.0%
- Austin: $497,600, down 6.7%

These divergent trends reflect local demand-supply dynamics, with high-cost West Coast markets experiencing mild corrections even as Sun Belt and Northeast metros maintain modest growth. For long-term wealth building, markets with stable, moderate appreciation—paired with strong job growth and favorable migration patterns—may offer the best combination of capital protection and yield. ([agentup.com](https://www.agentup.com/learn/december-2025-real-estate-update?utm_source=openai))

## Long-Term Wealth Opportunities

Looking beyond the week’s data, the National Association of Realtors identifies ten U.S. metropolitan areas poised for strong buyer opportunities in 2026. Markets such as Charleston, S.C.; Charlotte, N.C.-S.C.; Columbus, Ohio; Indianapolis, Ind.; Jacksonville, Fla.; Minneapolis-St. Paul, Minn.-Wis.; Raleigh, N.C.; Richmond, Va.; Salt Lake City, Utah; and Spokane, Wash. stand out for their combination of:

1. Above-average millennial household shares
2. Robust household income and job growth
3. Sensitivity to lower interest rates
4. Favorable migration and listings-to-income alignment
5. Growth in building permits and mortgage originations

These markets are projected to outperform national averages in existing-home sales (+14%), price appreciation (+4%), and mortgage rates trending toward 6% in 2026. For investors and homeowners seeking long-term equity gains, targeting properties in these “hot-spot” metros could align capital preservation with rental demand driven by workforce and demographic trends. ([worldpropertyjournal.com](https://www.worldpropertyjournal.com/real-estate-news/united-states/jacksonville/real-estate-news-top-housing-markets-for-2026-national-association-of-realtors-2026-predictions-nar-housing-hot-spots-for-2026-the-markets-poised-for--14625.php))

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By closely monitoring weekly inventory shifts, mortgage rate movements, investor participation, and regional price differentials—and aligning acquisitions with metros forecasted for long-term growth—real estate investors and homeowners can better position their portfolios for wealth accumulation over the next decade.

Wealth Building Through Real Estate