Netflix star and The Agency founder and CEO Mauricio Umansky is eager to see home sales pick up steam this spring, but the celebrity agent is warning that buyers and sellers may still be stuck in a price rut.
“Right now, consumers and sellers are just kind of stuck,” Umansky said on “The Bottom Line” Wednesday. “Even if you’re in a situation where you’ve had a kid, you’ve had two kids, you have the opportunity to grow into something bigger, the high interest rates are just not allowing you to make that move.”
“I just see clients kind of dealing with what they have, kind of hanging in there,” he continued.
Many homeowners across America have been discouraged by a high interest rate environment and not wanting to move, refinance and ultimately pay a more expensive mortgage.
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As of April 17, interest rates on a 30-year fixed-rate mortgage are 7.625%, slightly higher than the previous day, while the 15-year fixed-rate remained unchanged at 6.625%.
Additionally, a string of hotter-than-expected inflation data since the start of the year has diminished the odds of an immediate interest rate cut by the Federal Reserve.
Fed Chair Powell said Tuesday that policymakers will “maintain the current level of restriction for as long as needed” until price pressures are tamed, opening the door to a higher-for-longer stance.
“Because of that, we’re seeing a lack of supply. And as long as you see a lack of supply, prices will stay high,” Umansky explained. “So we’re kind of in this rollercoaster, in this mouse wheel that we just keep going round and round and round because we’re not increasing supply, we’re not lowering pricing.”
“And all of that is happening because we’re not seeing a decrease of interest rates,” the celebrity agent added.
Despite the inflated rates and prices, this week is historically the best time to sell your home, according to Realtor.com.
“The third week of April brings the best combination of housing market factors for sellers,” Realtor.com senior economic research analyst Hannah Jones told FOX Business. “The best week offers higher buyer demand, lower competition [from other sellers], and fewer price reductions than the typical week of the year.”
“The flowers are blooming and the bees are buzzing and everything is going well. But generally speaking, everybody waits till the springtime in order to get their houses on the market,” Umansky pointed out.
“You start seeing a surplus of inventory come onto the market right now. Buyers are starting to make plans for their next school year. So they want to be [moved] into their houses during the summer so that in September, they can start being into the next school year,” he expanded. “The houses also look a lot prettier when you’re seeing the flowers, the gardens, everything is just blooming. Everything is just beautiful.”
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For those who plan to list their homes, the “Buying Beverly Hills” patriarch advises you to take advantage of the spring and summer business.
“That’s when most of the buyers are out,” Umansky said. “Lack of inventory is in your favor, which means it’s time to list your house and get it on the market.”
FOX Business’ Megan Henney contributed to this report.