Reluctant Sellers and Shaky Demand, The Current State of America’s Real Estate Market

Sunny skies aren’t shining across America’s real estate market just yet, according to top industry figures. In an exclusive interview on “Mornings with Maria” this Thursday, Barbara Corcoran, founder of the Corcoran Group and renowned “Shark Tank” entrepreneur, summed up the current challenges:

“No one wants to move and there are fewer houses to choose from at higher rates. So it’s difficult for homebuyers.”

Despite a slight dip in mortgage rates—30-year fixed rates have fallen to 6.96% (the lowest level in six weeks) and 15-year fixed loans to 6.21%—Corcoran believes these numbers are not low enough to entice sellers to list their properties. Redfin reported that over half (54.5%) of homes on the market have been listed for more than 60 days, with many potential sellers reluctant to let go of their low-rate mortgages.

“I don’t think prices will shake out at all. I think they’ll hold out hoping interest rates will go down again. And what is it to them? It’s another six months. And a lot of the sellers have very low interest rates they don’t want to give up,” Corcoran added.

The stagnant market follows a period of frantic activity during the pandemic, when soaring demand and low interest rates fueled a housing boom. Today, however, skyrocketing home prices coupled with a tightening affordability crisis have pushed homeownership further out of reach for many Americans.

Adding perspective to the discussion, Ryan Serhant, a prominent real estate broker and television personality, commented:

“While the recent dip in mortgage rates offers a glimmer of hope for buyers, the reality is that property prices are still astronomical compared to wage growth. Buyers are cautious, and sellers aren’t eager to part with their low-rate loans.”

Similarly, Gary Keller, co-founder of Keller Williams, observed:

“The market is in a holding pattern. Sellers cling to historically low interest rates as if they’re priceless, and until that dynamic shifts, we’re likely to see continued stagnation and a delay in real market recovery.”

These remarks illustrate a clear disconnect: even as buyers scramble to find opportunities in a tightening market, sellers are sitting on their assets, waiting for the next dip in interest rates to justify a move. This cautious approach is exacerbating the supply-demand imbalance, keeping home inventory low and maintaining pressure on prices.

As the nation grapples with these challenges, the real estate market’s future remains uncertain. The current environment has left both buyers and sellers in a state of limbo, with potential shifts in interest rates and economic policies poised to tip the scales. For now, however, the market appears to be in a holding pattern, with few willing to make a move in this high-stakes game.

In an era where every percentage point in mortgage rates counts, and with economic pressures mounting, the voices of industry leaders remind us that a robust recovery is still on the horizon—but only when the fundamentals finally align in favor of both buyers and sellers.

Janine Partis
UCW Newswire