Celebrity real estate agent gives reality check on housing: 'We are not going to see prices go down'

One celeb property representative made a dismal forecast about the health of the U.S. real estate market on Wednesday.

” I do not understand we will see costs boil down,” The Firm creator and CEO Mauricio Umanksy informed FOX Organization’ Stuart Varney throughout an interview on “Varney & & Co.”

” The federal government has actually been attempting to reduce prices, as part of the inflation, however the truth is that we have an extremely low stock of real estate today … till we can begin seeing a greater stock of real estate, we’re not visiting costs decrease,” he included.

HOME COSTS SIMPLY SMASHED ANOTHER RECORD HIGH IN JUNE

Umanksy’s remarks begin the heels of current information released by S&P CoreLogic Case-Shiller index that revealed home costs reached a brand-new record high in June. What’s more, purchasers are dealing with high home loan rates. Federal Reserve Chairman Jerome Powell signified the “time has actually come” to start the long waited for start to the rate cut cycle throughout a Jackson Hole speech last month.

” We have a lot of owners that are being in their homes, resting on low rate of interest,” Umansky kept in mind. “Till those rate of interest boil down, we’re not visiting them … and till we do not see an increase and a higher supply, we’re not visiting costs decrease.”

Umansky likewise kept in mind that even when the Fed decreases rate of interest, bottled-up need for real estate will keep costs pumped up.

Moving to the 2024 governmental election, Umanksy stated Vice President Kamala Harris’ strategy to offer newbie property buyers $25,000 in deposit help will not “do anything great.”

In his viewpoint, the Trump administration “did some fantastic things,” consisting of reducing rate of interest and putting cash into the economy.

” Suddenly … [we] began to raise rate of interest significantly in order to produce, in order to manage inflation. However we didn’t depend on all of these individuals simply refraining from doing anything,” he described.

” It’s a brand-new world, it’s a brand-new method of doing things, and we have actually got to take a look at brand-new methods. We can’t simply return to the old methods of managing inflation and managing supply and need,” he included.

FOX Organization’ Megan Henney likewise added to this report.