Hot property market ‘probably can’t sustain itself’, estate agent warns

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As 30-year mortgage rates hit three-year highs, you might think it’s safe to assume buyer demand has cooled, but a real estate agent is sounding the alarm over the market overheating.

“You would have thought it would slow down, but literally people were waiting around the block for four hours,” Redfin agent Ian Rubinstein told FOX Business’ Connell McShane of a recent listing in Woodmere, New York. York, which had 15 offers by the end of the day.

“Being in the real estate business, I want it to last forever. But be rational? This cannot sustain itself,” warned Rubinstein.

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The next few weeks are critical for the housing market, with some buyers rushing to strike a deal before the Federal Reserve continues its rate hikes. But if demand and house prices remain high alongside soaring mortgage rates, experts warn of a housing bubble.

A Redfin economist remains hopeful that this can be avoided.

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“I expect the market to be considerably cooler in a month or two. It will take some time for home buyers and sellers to react,” said Redfin chief economist Daryl Fairweather. “Given that mortgage rates are up and the Fed is going to keep raising interest rates, I just don’t think the conditions are right for this to turn into a big bubble worth worrying about. “

Recent redfin Data Thursday even showed that 12% of sellers had lowered their asking price over the past month, with Fairweather noting that California markets were just beginning to calm down after the storm.

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