Compass CEO Robert Reffkin was interviewed on Bloomberg TV, and discussed how there are more homebuyers than sellers in the market. Read on for the key talking points he touched upon, and what we are experiencing in the real estate market.
Watch Robert's full interview here
- Housing accounts for nearly ½ of the Consumer Price Index jump
- We are seeing an early Spring market surge with high buyer demand
- Buyers are back, with multiple offers
- Open house traffic has increased enormously over the past few weeks
- With little inventory, and a buyers market surge, there is more of a risk that prices will go up than down
- The relationship between higher mortgage rates and rent has been interesting over the past year - we went from all-time low mortgage rates, to 20-year highs in less than 9 months, which moved a lot of buyers into the rental market. With mortgage rates leveling off in the 6% zone and rent prices rising to all time highs, renters are starting to look more at buying again.
- As long as mortgage rates stay in the 6% zone, buyers will tend to stay in the buyers market versus shifting to renting
- 42% of sellers gave seller concessions in December 2022, which is the highest amount of seller concessions to date in the past 10 years. Buyers are re-entering the market hoping for the same seller concessions that we saw at the end of last year.
