Red-hot housing market can’t ‘possibly sustain itself,’ real estate agent warns
Real estate experts look to avoid housing bubble if prices, demand remain high
FOX Business’ Connell McShane speaks to Redfin real estate agent Ian Rubinstein about the competitive market amid highest 30-year mortgage rates in three years.
With 30-year mortgage rates reaching a three-year-high, you’d think it’s safe to assume homebuyers’ demand has cooled off – but one real estate agent is sounding the alarm over the market overheating.
"One would have thought that that would slow down, but literally people were waiting around the block for four hours," Redfin agent Ian Rubinstein told FOX Business’ Connell McShane about a recent listing in Woodmere, New York, which had 15 offers by the end of day.
"Being in the real estate business, I want this to go on forever. But being rational? It can't possibly sustain itself," Rubinstein cautioned.
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The next few weeks are critical for the housing market, with some buyers rushing to secure a deal before the Federal Reserve continues its rate hikes. But if demand and home prices remain high alongside surging mortgage rates, experts warn of a housing bubble.
One Redfin economist remains hopeful that it can be avoided.
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Barron’s associate editor Andrew Bary weighs in on the real estate market and provides an outlook for home-improvement stocks.
"I expect the market to be significantly cooler in a month or two. It'll take some time for home buyers and sellers to react," Redfin chief economist Daryl Fairweather explained. "Since mortgage rates are up and the Fed is going to keep raising interest rates, I just don't think the conditions are there for this to turn into a big bubble worth worrying about."
Recent Redfin data out Thursday even showed that 12% of sellers have lowered their ask price over the last month, with Fairweather noting markets in California are just now starting to calm from the storm.