Real estate expert from Million Dollar Listing issues dire warning for house prices in 2024

Property expert Kirsten Jordan has warned that house prices in some areas could fall by as much as 10 percent this year.

Jordan, the first female real estate agent to be placed on Bravo’s Million Dollar Listing New York, said some overvalued markets are due for a “correction.”

“This is the opportunity for buyers to enter the market,” the luxury real estate agent said during a Fox Business interview.

It comes as Redfin CEO Glenn Kelman said home prices will fall this summer as homeowners trying to wait out increased mortgage rates realize they can’t wait any longer.

Home prices in former boomtowns are already starting to fall as inventory rises and competition for each home decreases.

“I do believe we will see a slight correction in home prices,” Jordan said. “This is the opportunity for buyers to enter the market.”

She said the area where prices are still very high are the prime locations in the US where inventory has always been lower.

“Luxury hotspots will remain quite strong,” she said.

But it’s the parts of the country that saw “inflated demand driven by really cheap money” when interest rates were low during the pandemic that people should be looking at.

“What we’re going to see is that there’s lagging data about what’s going on in the parts of the country where home prices have really artificially doubled in areas where we don’t know where that demand really came from,” Jordan explained. .

“They were people who moved around the country for a while, when they could work remotely and had access to a lot of cheap money. I think we will see a lagging correction there in the coming quarters.”

Jordan predicted that prices could drop by as much as 5 to 10 percent in some places.

But she argued against any fear of a serious housing crisis similar to those of 2007 and 2008.

‘We absolutely hope that this is not the case. At this point, that remains to be seen, because the last time we had very, very low rates for a decade was a time when people might just buy one nice coat, and have two nice pairs of shoes, and maybe open their refrigerator. and there was only a little bit of food in there because they didn’t consume too much,” she added.

She pointed out that Americans are now at a point where they expect “cheap money,” and they are spending too much and consuming too much.

She said it’s hard to predict what might happen to the market because it’s so wrapped up in everything else right now, including credit card debt.

While she said she thinks higher mortgage rates will stick around for a while, she doesn’t think we’ll see “20 years of double-digit interest rates like we did in the 1970s and 1980s.”

The average 30-year mortgage rate is currently 6.99 percent, according to the latest data from government-backed lender Freddie Mac.

As Redfin’s CEO said in an interview earlier this month, there are signs that the housing market is starting to become more affordable in certain areas.

Homes in major metro areas including Florida and Texas are already seeing “major price reductions,” Kelman said in an interview with financial expert David Lin.

The real estate company boss said the reason prices are falling is because homeowners are giving up waiting for a drop in mortgage rates before selling.

Tampa is one of the cooling housing markets on the west coast of Florida, according to Redfin

As more people decide to put their homes on the market, inventory grows, causing prices to begin to fall, he said.

New data from the real estate brokerage earlier this month showed that housing markets on Florida’s west coast are cooling faster than anywhere else in the US.

New construction is soaring – bringing the number of homes to pre-pandemic levels – meaning there is less competition for every home.

In addition, rising insurance costs and a sharp increase in the number of natural disasters discourage people from settling in the area.

A cooling housing market usually occurs when there are more sellers than buyers. Prices are falling and homes are being sold slowly – and below asking price – while inventory levels are rising.

The opposite happened in Florida during the pandemic, when it became one of America’s hottest markets – but there now appears to be a reversal. It gives hope to those looking to buy, but is a huge blow to those who have bought in recent years.

North Port’s housing market is cooling the fastest, followed by Tampa and Cape Coral, the analysis found it.