Former Bravo star and "Million Dollar Listing" agent Kirsten Jordan – and high-grossing brokers just like her – are wrestling with a pessimistic market that’s allegedly never been seen before.
"This is something we actually haven't seen in our lifetime that we can remember. If you think about the last time that we spent a decade with rates that were sub-5%, that was actually the 1950s," Jordan said on "Cavuto: Coast to Coast" Tuesday in response to Neil Cavuto asking how she would define a "housing doomsday."
"They're probably going to be there a little bit longer than we think," she continued, "and we're just gonna have to metabolize them."
An overwhelming majority of homes in the U.S. are overvalued as steep mortgage rates and an ongoing housing shortage push the price of real estate even higher.
RENT PRICES ARE STAGNATING, SUGGESTING HIGH INFLATION MAY STICK AROUND
A new report published by Fitch Ratings found that homes were overvalued by 11.1% at the end of 2023, a trend occurring in about 90% of U.S. metro areas.
Two weeks ago, mortgage rates rose for the first time in nearly a month to just over 7%. Fifteen and 30-year rates were up again from Friday to Monday, with a 30-year fixed-rate mortgage at 6.875% and 15-year at 6.125%.
"I don't think we're going to see 20 years of double-digit interest rates like we did in the 70s and 80s," Jordan argued. "And I really believe that right now we're going to see a slight correction in prices of homes. This is the opportunity for buyers to get into the market."
But that moment hasn’t arrived yet, according to the luxury real estate agent who pointed out an inventory shortage.
"What we know is working is location, location, location. Those are the areas where they're still holding prices very, very strong. We're seeing that there's a lack of inventory in the top locations in the U.S. that never had an issue in the first place," she said.
"It was people moving around the country for a little while when they can work remotely, and they had access to a lot of cheap money," Jordan expanded. "I think that's where we're going to see this lagging correction adjustment that will come over the next several quarters."
Price adjustments could change anywhere from 5 to 10% across America’s real estate markets this year, according to the "Million Dollar Listing" alum.
GET FOX BUSINESS ON THE GO BY CLICKING HERE
"[A housing crash] is yet to be seen because, again, the last time we had a decade of very, very low rates is a time when also people only bought maybe one nice coat, and they had two nice pairs of shoes, and maybe they open their refrigerator and they only had a little bit of food in there because they weren't over consuming," Jordan said.
"We're in a whole different place where we expect cheap money, we overspend, we overconsume. And so there's credit card debt, there's so many layers to this that I don't think it's so easy to say what's going to happen to housing, because it's all wrapped up in everything else."
FOX Business’ Megan Henney contributed to this report.
