FoxBusiness.com:
Real estate expert Sam DeBianchi weighs in amid ‘tricky’ market to close out 2022, gives predictions for 2023
Real estate has proved to be a “tricky” market to navigate, but one industry expert argues mortgage rates trending downward at the close of 2022 will be the “game changer” heading into 2023.
“One thing that I really will say that’s the game changer in real estate are mortgage rates,” DeBianchi Real Estate’s Sam DeBianchi, who starred on Million Dollar Listing Miami’s only season, said on “Mornings with Maria” Tuesday.
The U.S. Census Bureau reported a 5.8% increase in new home sales in November, and DeBianchi says this may only increase in 2023 as the current mortgage rates prompt buyers to look for new homes rather than renting or purchasing fixer-uppers.
“Rates have really transformed the buying landscape because now buyers don’t want the fixer-upper, they don’t want to come out of pocket. They’re saying, ‘well, if I’m going to have to pay 6%, then I want everything to that.’ And that’s really the focus.”
DeBicanchi Real Estate’s Sam DeBianchi argues mortgage rates are the “game changer” in the “tricky” housing market heading into 2023. (FOX Business)
The October S&P Case-Shiller report released Tuesday morning showed home prices declined across the country for the fourth consecutive month, lending to the increase in home sales.
“As the Federal Reserve continues to move interest rates higher, mortgage financing continues to be a headwind for home prices,” Craig J. Lazzara, Managing Director at S&P DJI, said in the report. “Given the continuing prospects for a challenging macroeconomic environment, prices may well continue to weaken.”
DeBianchi echoed this analysis, arguing that while home prices may see a decrease, mortgage rates are still a bigger factor for buyers.
Debianchi referred to many homeowners as being “over-leveraged,” which she explained will eventually cause more properties and homes to hit the market and dramatically expand the inventory for buyers.
“So there’s money to be made. Don’t get greedy. But I do think that there are quite a few over-leveraged people and we’re going to see those properties hit the market. Is it going to be a crash? No, but at least we’ll have that many more homes and opportunities for people to buy.”
National Association of Home Builders CEO Jerry Howard argues a less hawkish stance from the Federal Reserve and declining mortgage rates will ‘help’ markets and home construction.
While the end of 2022 saw a significant increase in the purchases of new homes, there was a drop-off of 7.7% in November for existing home sales.
READ MORE at FoxBusiness.com
