Real estate industry

Real estate industry ‘desperate’ for more inventory: Corcoran CEO

Pamela Liebman, president and chief executive of The Corcoran Group, said on Wednesday that the real estate industry was “desperate” for more inventory and that if more homes became available it would “really help everyone.” .

She also noted that currently rental prices are “beyond sticker shock” in popular markets, especially New York.

“Good luck finding an apartment. [in New York City] and if you find one, you’re going to pay through the nose,” Liebman told “Mornings with Maria” on Wednesday. “It’s really hard for someone looking now.”

Liebman noted that currently “there is very little inventory” and higher mortgage rates as well as rental rates.

ASKING RENTS REACH A RECORD LEVEL IN APRIL, SOME AREAS ARE GOING FOR A 30% INCREASE IN PRICES

She also pointed out that once the inventory is available again, it will “really help everyone in different ways, because there are too many people fighting for too few places to live right now.” .

Liebman provided the insight the day after it was revealed that sales of new single-family homes in the United States fell far more than expected last month to the lowest level in two years, as rising construction costs, home prices, interest rates and supply chain issues continue to plague the industry.

The latest data from the US Census Bureau shows the pace of new home sales fell 16.6% in April from the previous month to a seasonally adjusted rate of 591,000. Analysts polled by Refinitiv had expected a 1.7 drop. %.

The decline is 26.9% lower than a year ago, and the smallest since April 2020. This is the fourth consecutive month of decline in new home sales.

Liebman noted that the markets are “quite bifurcated now.”

“If you look at the sales under $400,000, that’s where we really took the biggest hit,” she told host Maria Bartiromo.

Pamela Liebman, CEO of the Corcoran Group, reveals the next real estate hotspots. (iStock/iStock)

“If you look at sales above 400,000, you’ve actually had an increase, so unfortunately those mortgage rates are hurting the people the most that you really don’t want to hurt, [which are] these first-time buyers.

Liebman pointed out that mortgage prices and rates are up and “affordability is down.”

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The Census Bureau reported that the median sale price for new homes hit $450,600 last month. With interest rates up 5%, the rising cost of property is squeezing more potential buyers out of the market.

Liebman noted Wednesday that the pandemic and the shift to working from home “definitely helped ‘the real estate boom’ because why not sit in a nice warm state, pay less tax and enjoy the lifestyle” .

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“Right now we’re seeing strength across the board, except where affordability has become too big of a factor,” she added.

Liebman also revealed the next real estate hotspots on Wednesday.

“I think people are looking to buy in areas that are very close to other areas that have really skyrocketed in price and they’re trying to find the next big thing,” she said.

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Breck Dumas of FOX Business contributed to this report.


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