Housing is normalizing, ‘by no means is there a fire sale’: Real estate expert
Douglas Elliman vice chair Dottie Herman discusses whether the existing home sales slide is a warning sign for the economy on ‘Cavuto: Coast to Coast.’
Real Estate brokerage firm Douglas Elliman vice chair Dottie Herman argued on Thursday that home prices are "cooling," but "it is not a fire sale."
Speaking on "Cavuto: Coast to Coast" on Thursday, Herman explained the current "issues" in the real estate market, noting that the current uncertainties in the world and the debate over whether the U.S. is in a recession are causing prospective home buyers to wait.
The real estate expert also pointed to the "shortage of inventory," noting that a "normal supply" of inventory is about six and a half months, but currently there is about three.
"When you have more buyers than you have inventory, you’re not going to fall into a market where nobody buys properties," Herman told host Neil Cavuto.
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She added that in her 30 years in real estate, she has "never seen anything like the last two years," noting that "we are coming back to a more normal market."
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"This is good for the buyers. They will be able to make a few concessions, but by no means is there a fire sale," she added.
Herman then said that she believes "some price growth" should be expected, but not 14 to 18% year-over-year growth that was seen recently.
She also pointed to mortgages, noting there are "a lot of different types" and urged prospective homebuyers to discuss those options with a bank.
The average rate for a 30-year fixed-rate mortgage dipped slightly this week as volatility continues in the cooling U.S. housing market.