The party’s over for America’s housing market, but this real-estate CEO believes it will recover

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The housing market has hit some turbulence but it’s nothing that can’t work itself out, one real-estate veteran says.

The pandemic home-buying frenzy came to a screeching halt when the U.S. Federal Reserve raised interest rates last June. Rates have since doubled, remaining firmly above 6%. After home sales plunged, the housing sector has recovered somewhat, but it is now facing a shortage of homes for sale, leading the market into a bidding frenzy once again.

“Housing has just switched from where it was like a full-on party with champagne to a more austere market,” Freedman said. “And that’s to be expected. Rates have doubled inflation, bank collapses, all these things going on. It’s a little bit of a turbulent market right now.” With higher rates and home prices, “the market is now a disciplinarian. It used to be like ‘Weekend at Bernie’s’ and everybody was just buying, taking risks,” Freedman said. “Today, people are much more cautious and everything is a lot more expensive.”

“You want to work with a mortgage professional that can help you to understand where you are with what your credit is, what you can afford, what monthly makes sense based on your assets and liabilities,” Freedman said.

 

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