With housing data coming at us from every direction, it’s easy for agents — and consumers — to feel overwhelmed. To cut through the noise, I sat down with Mike Simonsen, chief economist at Compass and the founder and former CEO of Altos Research.
In this episode of Corr Values, he breaks down what the data is telling us right now, what to expect in the year ahead, and how agents can use these insights to guide clients with clarity and confidence.
5 data-driven insights to help you lead
Here are some takeaways from our conversation:
1. Headlines are about to flip
The past few years, the national story has been that home prices are up, and sales are down. But Simonsen says that’s about to reverse. Consumers will see a different message about pricing in the headlines, so we as agents need to be prepared to lead the conversation.
Remind clients that the national narrative doesn’t always reflect what’s happening locally, and give context. In Chicago, for example, home price growth is still outpacing most cities across the country.
2. Pay close attention to price reductions
If there’s one stat to focus on with clients, it’s price reductions. Not only is it simple to explain, but Simonsen says it’s a clear indicator of market shifts. If this number climbs when you’re listing a home, it’s a sign of more seller competition — and reason to reevaluate your pricing strategy. Guiding clients to watch this metric helps set expectations and make proactive moves.
3. Lower rates aren’t without trade-offs
If mortgage rates come down to the 5 percent range, Simonsen says we’ll see a notably different housing market. Buyers on the sidelines will jump back in, and sellers holding onto low rates will have more incentive to move. But rates dropping to the 5 percent range would also point to broader economic headwinds. So, while that scenario could unlock more inventory, it wouldn’t come without trade-offs.
4. Higher rates may be healthier long-term
Counterintuitive as it sounds, Simonsen argues that multiple years of higher rates are beneficial for the market in the long term. Why? It helps ease the “lock-in effect” of homeowners sitting on historically low rates. When people buy homes at higher rates, they are more likely to relist.
5. Transparency builds trust
Data is power — in any market. Simonsen says agents often hesitate to share stats when the market softens, but that’s when your role as an advisor becomes all the more important. Your honest perspective builds trust, reinforces your value and helps your clients stay ahead of the curve.
Corr Values is a podcast that uncovers the stories, strategies, and values that fuel real success in real estate. Past guests have included brand strategist Tyler Mount and Million Dollar Listing alum Kirsten Jordan, among others. Episodes are available on YouTube, Spotify, and Apple Podcasts.
Amy Corr is Chief Brokerage Officer for @properties Christie’s International Real Estate.
