Pamela Liebman, president and CEO of The Corcoran Group, argued on Wednesday that the real estate industry is “desperate” for more inventory and if more homes become available, it “will really help everybody.”
She also noted that currently rental prices are “beyond a sticker shock” in popular markets, particularly in New York City.
“Good luck finding an apartment [in New York City] and if you find one, you are going to pay through the nose,” Liebman told “Mornings with Maria” on Wednesday. “It’s really tough for somebody now looking.”
Liebman noted that currently “there is very little inventory” and higher mortgage rates as well as rental rates.
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She also pointed out that once more inventory becomes available it “will really help everybody in a lot of different ways because there are too many people fighting for too few places to live right now.”
Liebman provided the insight the day after it was revealed sales of new single-family houses in the U.S. dropped significantly more than expected last month to the lowest level in two years as rising construction costs, home prices, interest rates and supply chain woes continue to batter the industry.
The U.S. Census Bureau’s latest data shows the pace of new home sales fell by 16.6% in April from the month before at a seasonally adjusted rate of 591,000. Analysts surveyed by Refinitiv anticipated a dip of 1.7%.
The drop is 26.9% lower than a year ago, and the lowest since April 2020. This is the fourth straight month new home sales have declined.
Liebman noted that markets are “quite bifurcated now.”
“If you look at the sales below $400,000, that’s where we really took the biggest hit,” she told host Maria Bartiromo.
“If you look at sales above 400,000, you actually had an increase so, unfortunately, these mortgage rates are hurting the people you really don’t want to get hurt the most, [which are] these first-time home buyers.
Liebman stressed that prices and mortgage rates are up and “affordability is down.”
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The Census Bureau reported that the median sales price of new homes hit $450,600 last month. With interest rates now upward of 5%, the rising cost of homeownership is pricing more would-be buyers out of the market.
Liebman noted on Wednesday that the pandemic and the shift to working from home “certainly helped” the real estate boom “because why not sit in a nice, warm state, pay less taxes and enjoy the lifestyle.”
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“Right now we’re seeing strength really across the board except where the affordability has become just too big of a factor,” she added.
Liebman also revealed the next real estate hot spots on Wednesday.
“I think people are looking to buy in areas very close to other areas that have really exploded in price and they try to find the next big thing,” she said.
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FOX Business’ Breck Dumas contributed to this report.