Home News Real estate prices ‘cooling,’ but ‘not a fire sale’: Expert

Real estate prices ‘cooling,’ but ‘not a fire sale’: Expert

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Dottie Harman, vice chairman of real estate broker Douglas Elliman, said Thursday that home prices are “cooling” but that “it’s not a bargain.”

speak at “Cavuto: Coast to CoastOn Thursday, Harman explained the current “problem” in the real estate market, saying the current global uncertainty and debate over whether the United States is in recession are making prospective homebuyers wait. It pointed out.

Real estate experts also point to “inventory shortages,” with the “normal supply” of inventory being about six and a half months, now about three months.

“When there are more buyers than inventory, you don’t end up in a market where no one buys a property,” Herman told the host. neil caboot.

Home buying competition drops to lowest level in two years

In her 30 years in the real estate industry, she said, “I haven’t seen anything quite like the last two years,” adding, “We’re getting back to a more normal market.”

“This is good for buyers. They can make some concessions, but never a bargain,” she added.

Harman believes that “some price gains” should be expected after that, but doesn’t think the 14-18% year-on-year gains seen recently are likely.

She also referred to mortgages, noting that there are “many different types,” and urged prospective homebuyers to discuss those options with their banks.

Average 30-year fixed-rate mortgage rates fell slightly this week as volatility continues to cool. US housing market.

Much of the recent economic data points to a slowdown in the housing sector after two years of pandemic-fueled demand as the Federal Reserve hikes rates to combat surging inflation. is shown. (iStock/iStock)

In Freddie Mac’s latest primary mortgage market research, released Thursday, Benchmark 30-Year Fixed Rate Home Loan It is now at 5.13%, down from 5.22% last week, but well above the average of 2.86% a year ago.

The average 15-year fixed rate bond also fell to 4.55% from 4.59%. A year ago his 15-year interest rate averaged 2.16%.

Many recent economic data show The housing sector is slowing down After two years of pandemic-fueled demand, Federal Reserve Rate Hike Interest rates to combat rising inflation.

According to data released Thursday by the National Association of Realtors, Sales of existing homes fell July was the sixth consecutive month of 5.9% declines, dropping to the lowest level since May 2020.

As Harman noted, recession fears are also weighing on prospective buyers, who are increasingly reeling from rising house prices and pressure on their wallets from inflation.Cancellation of home sale Soaring to 2-year high last month.

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Harman also cautioned that he doesn’t believe there will be any break in rental prices that are “off the wall.”

“If you can afford it, you should buy it,” she advised.

Breck Dumas and Megan Heney of FOX Business contributed to this report.

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