Money Guy Show: Episode Summary

Title: Home Prices Are Being SLASHED (What You Need to Know)
Hosts: Brian Preston and Bo Hanson
Release Date: July 2, 2025

Introduction

In this episode of the Money Guy Show, hosts Brian Preston and Bo Hanson delve into the recent trends in the housing market, particularly focusing on the significant reductions in home prices across various markets. The discussion provides listeners with valuable insights into the factors driving these changes and offers actionable advice for potential homebuyers navigating this evolving landscape.

Current State of the Housing Market

Brian Preston opens the conversation by addressing the noticeable decline in home prices in certain markets. He attributes this trend to increasing housing inventory—a shift from the limited supply seen during the post-pandemic period which had previously driven prices upward.

"We shut down all the supply chains. We lost a lot of people that were in the home building process and you saw inventory kind of taking a toll. And you know what happens when you limit the supply of houses available? Prices go up a lot."
— Brian Preston [00:57]

Reby highlights data from the Federal Reserve, indicating a steady rise in active home listings from July 2016 through May of the current year, marking a reversal from the post-pandemic slump.

"Active listings have steadily been increasing. We have more inventory. That's one thing that's potentially affecting home price..."
— Reby [01:26]

Impact on Home Prices

The increase in housing inventory has led to longer market times for properties, resulting in price reductions.

Brian Preston notes that one in five homes have experienced price cuts since April, with 30-32 out of 50 metro areas witnessing month-over-month declines in May.

"One in five homes have actually seen price reductions since April in the month of April."
— Brian Preston [02:58]

Reby adds that this trend is a positive sign for prospective buyers who have been previously sidelined by rapidly escalating prices.

"Maybe now it's getting to a more reasonable level where I can actually act and actually move on."
— Reby [03:44]

Challenges for First-Time Homebuyers

Despite the encouraging signs, significant challenges remain for first-time homebuyers. Notably, the average age for first-time buyers has risen to 38 years old, a new all-time high.

"First time home buyers are now reaching an age of 38."
— Reby [02:01]

Brian Preston expresses concern over this trend, emphasizing the increased difficulty many face in fulfilling their dream of homeownership.

"It seems to get harder and harder."
— Brian Preston [02:01]

High mortgage rates, currently averaging 6.8%, continue to impede affordability, despite being lower than the previous peaks of 7.5% to 8%.

"Now, that's lower than it has been. It has been as high as 7 and a half, 8%, but that's still relatively high."
— Reby [02:28]

Advice for Prospective Homebuyers

The hosts provide comprehensive advice for individuals considering purchasing a home in the current market:

1. Assess Personal Necessity:

   • Reby encourages listeners to evaluate whether they genuinely need a new home, rather than following societal or peer pressures.
     "Just because someone else bought a home or just because that was someone else's trajectory does not mean that that has to be your trajectory."
     — Reby [04:48]

2. Financial Readiness:

   • Reby emphasizes ensuring that saving for a home does not compromise other financial goals, such as retirement savings.
   • Brian Preston underscores the importance of strategic planning, recommending a commitment to living in the home for at least five to seven years to justify the investment.
     "Make sure you have a plan to live there for five to seven years."
     — Brian Preston [04:48]

3. Maintain Affordable Housing Costs:

   • Both hosts advocate for keeping total housing expenses below 25% of gross income to prevent financial strain.

     "Keep your total housing costs less than 25% of your gross income."
     — Reby [05:37]

     "The whole purpose is to make sure you don't end up house rich, life poor."
     — Brian Preston [06:24]

4. Utilize Available Resources:

   • Reby points listeners to tools like the Home Buying Calculator and Home Buying Checklists available at moneyguy.com/resources to aid in decision-making.
     "We have a couple tools out at moneyguy.com resources we want you to check out."
     — Reby [06:56]

Tools and Resources

The hosts highlight several resources designed to assist potential homebuyers:

• Home Buying Calculator: Helps determine how much home one can afford based on individual financial variables.
• Home Buying Checklists: Guides users through essential considerations before making a significant home purchase.

Reby reiterates that homeownership is beneficial for many but not a necessity for building wealth, encouraging listeners to make informed decisions aligned with their personal financial situations.

"Owning a home can be a wonderful thing for you, but it's not a necessity to be able to build wealth or reach financial independence."
— Reby [07:54]

Conclusion

This episode of the Money Guy Show offers a balanced perspective on the current housing market, acknowledging both the optimistic trends of increasing inventory and the persistent challenges faced by homebuyers. Brian Preston and Reby provide practical advice, encouraging listeners to carefully assess their financial readiness and personal needs before embarking on homeownership. By leveraging available tools and maintaining disciplined financial habits, individuals can navigate the market more effectively and make decisions that align with their long-term financial goals.

For more information and access to helpful resources, visit moneyguy.com/resources.

Notable Quotes:

• "We shut down all the supply chains. We lost a lot of people that were in the home building process and you saw inventory kind of taking a toll."
  — Brian Preston [00:57]

• "First time home buyers are now reaching an age of 38."
  — Reby [02:01]

• "Keep your total housing costs less than 25% of your gross income."
  — Reby [05:37]

• "Make sure you have a plan to live there for five to seven years."
  — Brian Preston [04:48]

Disclaimer: The information provided in this summary is for informational purposes only and does not constitute financial advice. Please consult with a financial professional for personalized guidance.