Former Bravo star and “Million Dollar Listing” agent Kirsten Jordan is facing a challenging housing market unlike anything seen before. She discussed this on “Cavuto: Coast to Coast” with host Neil Cavuto.
“We haven’t seen this in our lifetime. The last time we had a decade with rates under 5% was the 1950s,” Jordan said. She warned that high mortgage rates and a housing shortage are pushing home prices even higher.
A report from Fitch Ratings revealed that by the end of 2023, homes were overvalued by 11.1% in about 90% of U.S. metro areas. Mortgage rates recently increased to over 7%, with 30-year fixed-rate mortgages at 6.875% and 15-year at 6.125%.
Jordan doesn’t foresee 20 years of double-digit interest rates like in the ’70s and ’80s. She predicts a slight correction in home prices, creating a buying opportunity. However, she noted hat this opportunity hasn’t arrived yet due to a shortage of inventory in prime locations.
“The key is location. Prices remain strong in top U.S. locations with low inventory,” she explained. Remote work and cheap money led to people moving around, but a market correction is expected in the next few quarters.
Jordan estimates that home prices could adjust by 5% to 10% across the U.S. this year. She emphasized that today’s market is different from the past, with higher consumption and debt levels complicating predictions.
“We expect cheap money and overspend. It’s not easy to predict what will happen to housing because it’s tied to everything else,” Jordan concluded.