Luxury realtor Katrina Campins claimed on Wednesday that “the stock market will be an indicator of what will happen.” In the real estate market.. “
The founders of Campins Company emphasized that customers are affected by the stock market that has “flowed into the real estate market.”
Markets have experienced volatility in recent months amid uncertain economic conditions. Inflation is at its highest level in 40 years And because the Federal Reserve is increasing rates as a way to curb price spikes.
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“Some people claim that the stock market isn’t doing well enough to invest in real estate, but overall, it’s also having a psychological impact on cash buyers,” Campins said.Kavout: From coast to coast.. “
“Sometimes my clients will say,’Well, I can still find a cash buyer.’ Yes, but they are stock market-influenced and even psychological. Liquidity may be low as the portfolio is not functioning well due to the impact of rising interest rates. “
Campins also pointed out that rising interest rates are causing the real estate market to slow down.
The interest rate sensitive housing market has begun to cool significantly in recent months. Federal Reserve The fastest pace of policy tightening in 30 years. Policy makers have already approved a 75 basis point rate hike in June and will approve another rate hike of that magnitude by the end of July.
Following the rate hike 30 year fixed mortgage – Most popular among new homeowners – rose to nearly 6% in June, but has since eased. According to recent data from mortgage lender Freddie Mac, the average interest rate on a 30-year fixed rate mortgage for the week leading up to July 14 was around 5.51%.
Real estate professionals said existing home sales in the U.S. fell to a two-year low in June as rising mortgage rates and constant rises in home prices delayed activity by driving future homebuyers out of the market. It provided insights the same day it became clear.
According to new data released by the National Association of Real Estate Agents, sales of pre-owned homes in June fell 5.4% from the previous month to an annual rate of 5.12 million, the lowest level since June 2020. Sales have declined for the fifth straight month. On an annual basis, home sales plummeted 14.2% in June.
The Sales slowdown The median home prices across the country soared in June, setting a new record of $ 416,000. This is a 13.4% year-on-year increase from the $ 408,400 revised in May.
Campins said “the supply is very low.”
“Some buyers have withdrawn from the market and sellers are waiting for them to come back,” she added. Current market conditions..
“What we’re starting to see is that despite rising interest rates, some people are now looking at ARM or floating rate mortgages, which we’ve seen in recent years. It’s very different from what you have, “she explained. “That is, you basically get ARM for 5-7 years, during which the rate doesn’t change and then adjusts.”
“The reason is that the old saying is,’You marry a house and date the rate.’ So if you still find a home you love in this market, you can always refinance it later, “she continued.
According to a report released Wednesday, there were about 1.26 million homes for sale at the end of June, up 2.4% from a year ago. This is the first annual profit in three years. At current sales paces, it takes about three months to run out of existing home inventories, up from 2.6 months a year ago. Experts consider the 6-7 month pace to be a healthy level.
“Some markets are doing better than others,” Campins added. “Inventory is starting to grow, which is good for buyers because the market supply is very low.”
Megan Henney of FOX Business contributed to this report.