The U.S. housing market is now tilting in favor of buyers, who are pushing back against the high home prices that sellers are demanding, according to Compass cofounder and CEO Robert Reffkin.
He told CNBC on Wednesday that 30% of the inventory on the market has seen a price drop, which is more than anytime in last 10 years. Meanwhile, the market has seen 16% more inventory.
“It is a different environment. We are now seeing more sellers than buyers,” he said.
Reffkin said there have been more price cuts in the South, which had seen steep increases earlier as Americans left more expensive states during the pandemic.
Florida’s housing market has also been hit by a spike in home insurances costs, which have soared 40% year over year and are weighing on asking prices, he explained.
“Sellers bringing their homes on the market during this period need to be aware of how buyers are pushing back,” Reffkin said. “If your home is well priced in this environment, it will sell quickly. But if it’s not, it will sit on the market. Then you’re going to have to have a price drop. Then buyers will see they get a price drop. The sharks come out, and it will hurt you even more.”
www.aol.com/finance/buyers-gaining-upper-hand-housing-182034512.html
Per Rick Palacios Jr., of Research at John Burns Research and their recent survey:
“Consumers need mortgage rates to start with a 5 before they dive back into the housing market. We’ve been asking this question for a few years, and the responses haven’t shifted much.”