{"id":1805971,"date":"2023-01-15T06:05:18","date_gmt":"2023-01-15T11:05:18","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1805971"},"modified":"2023-01-15T06:06:40","modified_gmt":"2023-01-15T11:06:40","slug":"expert-warns-u-s-real-estate-market-in-big-trouble","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/expert-warns-u-s-real-estate-market-in-big-trouble\/","title":{"rendered":"Expert Warns U.S. Real Estate Market in &#8220;Big Trouble&#8221;"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"float:left\"><div class=\"counts mashsbcount\">18<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fexpert-warns-u-s-real-estate-market-in-big-trouble%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1805971&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47-->\n<p>As the Federal Reserve continues its hawkish market reset \u2013 which has contributed to a rise in interest and mortgage rates \u2013 <a href=\"https:\/\/www.foxbusiness.com\/real-estate\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:real estate experts\" class=\"link\">real estate experts<\/a> Alarms are being raised &#8220;big trouble&#8221; The U.S. market has much to look forward to.<\/p>\n<p>&#8220;When you have a rise and increase in interest rates like we&#8217;ve had, that is a big problem for housing. Interest rates are like the mother&#8217;s milk of housing,&#8221; Pulte Capital CEO Bill Pulte told FOX Business\u2019 Maria Bartiromo Thursday. &#8220;And if you cut it off, you&#8217;re in big trouble. And when you&#8217;ve had these massive increases in interest rates, it just puts a lot of things to a stop.&#8221;<\/p>\n<p>&#8220;It&#8217;s a tale of two cities. I hate to relate it to politics, but the more red states, places like Florida, Texas, the office buildings are pretty busy. Business is booming. There&#8217;s more demand and supply,&#8221; Thor Equities CEO Joe Sitt said later on &#8220;<a href=\"https:\/\/www.foxbusiness.com\/shows\/varney-co\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:Varney &#038; Co.\" class=\"link\">Varney &#038; Co.<\/a>&#8221; &#8220;It&#8217;s more, I hate to say it, markets like ours here in New York, Chicago, San Francisco is a ghost town. San Francisco&#8217;s been destroyed.&#8221;<\/p>\n<p>One of the nation\u2019s largest homebuilders, KB Home, <a href=\"https:\/\/www.businesswire.com\/news\/home\/20230110006009\/en\/KB-Home-Reports-2022-Fourth-Quarter-and-Full-Year-Results\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:released its Q4 report\" class=\"link\">Released its Q4 Report<\/a> Wednesday showed further signs of housing weakness. The report shows that KB Home had a 68% cancellation rate for new construction projects.<\/p>\n<p><a href=\"https:\/\/www.foxbusiness.com\/real-estate\/us-real-estate-monumental-opportunity-solve-housing-crisis-2023-expert\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:U.S. REAL ESTATE HAS \u2018MONUMENTAL OPPORTUNITY\u2019 TO SOLVE HOUSING CRISIS IN 2023: EXPERT\" class=\"link\"><strong>U.S. REAL Estate HAS \u2018MONUMENTAL OPPORTUNITY\u2019 EXPERT &#8211; HOUSING CRISIS IN 2023<\/strong><\/a><\/p>\n<p>Rates for mortgages also <a href=\"https:\/\/www.foxbusiness.com\/personal-finance\/mortgage-rates-higher-start-2023-freddie-mac\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:increased last week\" class=\"link\">Last week, the number of people who applied for it was up<\/a>The 30-year rate rose to 6.48%, while the 15-year mortgage was at 5.73%. This is an increase from the 5.68% week before. According to the Mortgage Bankers Association, (MBA), higher mortgage rates continue to challenge homebuyer affordability.<\/p>\n<figure class=\"caas-figure\">\n<div class=\"caas-figure-with-pb\">\n<div>\n<div class=\"caas-img-container caas-img-loader\"><img class=\"caas-img caas-lazy has-preview\" alt=\"For sale sign in front of homes\" data-src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2023\/01\/15124f951f84caf99c6edec77bb38af3\" src   style=\"display:none\"><noscript><img decoding=\"async\" alt=\"For sale sign in front of homes\" src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2023\/01\/15124f951f84caf99c6edec77bb38af3\" class=\"caas-img\" \/><\/noscript><\/div>\n<\/div>\n<\/div>\n<p><figcaption class=\"caption-collapse\">The U.S. has a strong housing market &#8220;big trouble&#8221; Bill Pulte, Pulte Capital CEO, said that the future was bright. &#8220;Mornings with Maria&#8221; Thursday, January 12, 2023<\/figcaption><\/p>\n<\/figure>\n<p><a href=\"https:\/\/foxbusiness.onelink.me\/Zkcx\/7ux7xf3k\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:READ ON THE FOX BUSINESS APP\" class=\"link\"><strong>READ ON FOX BUSINESS APP<\/strong><\/a><\/p>\n<p>Jerome Powell, Fed Chair warned Tuesday that higher interest rates would slow the economy. <a href=\"https:\/\/www.foxbusiness.com\/economy\/jerome-powell-warns-feds-inflation-fight-could-spark-political-opposition\" rel=\"nofollow noopener\" target=\"_blank\" not class=\"link\">&#8220;are not popular&#8221; The short-term<\/a>It could even lead to political opposition.<\/p>\n<p>&#8220;Price stability is the bedrock of a healthy economy and provides the public with immeasurable benefits over time,&#8221; In remarks prepared to be delivered at a conference hosted by Sweden&#8217;s central banking, Powell stated Tuesday. &#8220;But restoring price stability when inflation is high can require measures that are not popular in the short term as we raise interest rates to slow the economy.&#8221;<\/p>\n<p>&#8220;It\u2019s going to be tough,&#8221; Pulte spoke about the real estate market. &#8220;The [KB Home] cancelation rate&#8230; was through the roof, something like 68%, which is just enormous. Usually, that number is around 10, at most 20%. So I think we&#8217;ve got a tough road ahead this year, and I think you&#8217;ll start to see that in earnings toward the back half of this year and frankly, into next year. I think the earnings are going to continue to deteriorate.&#8221;<\/p>\n<p>Property investor Sitt claimed it\u2019s &#8220;going to take some time&#8221; For metropolitan areas to experience a rebound in commercial and personal housing markets.<\/p>\n<p>&#8220;I think the cities are going to wake up and try to react,&#8221; Sitt said. &#8220;I would say San Francisco rents are probably down somewhere in the neighborhood of about 35%. No exaggeration. It&#8217;s dramatic what&#8217;s going on in that marketplace.&#8221;<\/p>\n<p>Real estate investments go where the money is &#8220;feels comfortable,&#8221; Sitt predicts that Sunbelt state volatility will be lower this year because of a prediction by Sitt. <a href=\"https:\/\/www.foxbusiness.com\/category\/jobs\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:manufacturing job boom\" class=\"link\">Boom in manufacturing jobs<\/a>.<\/p>\n<p><a href=\"https:\/\/www.foxbusiness.com\/apps-products\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:GET FOX BUSINESS ON THE GO BY CLICKING HERE\" class=\"link\"><strong>GET FOX BUSINESS ON THE GO BY CLICKING HERE<\/strong><\/a><\/p>\n<p>&#8220;I hate, again, relating to politics, but from a global place, the autocratic countries are doing the best. Singapore, Dubai, Monaco. Some people joke Florida and Texas is part of that,&#8221; The CEO of Thor Equities stated this. &#8220;The world order is changing, particularly because of some of the conflict with China. So you&#8217;ve got this tremendous onshoring wave, and so all of the Southeast now is going to get their next economic benefit. I call it the battery belt, that battery belt market of all those jobs that are going to create for manufacturing, is going to have ripple effects there.&#8221;<\/p>\n<p>Pulte countered that his firm has yet find promising opportunities this year in the real-estate sector. <a href=\"https:\/\/www.foxbusiness.com\/personal-finance\/federal-reserve-raises-interest-rates-lower-december\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:rising rate pressure\" class=\"link\">Rate pressure is increasing<\/a>.<\/p>\n<p>&#8220;Not yet. It&#8217;s going to be pretty interesting,&#8221; Pulte said. &#8220;The M&#038;A [mergers and acquisitions] environment in housing and building products is something to keep an eye on over the next six, 12, 18 months. It&#8217;s not time yet.&#8221;<\/p>\n<p><a href=\"https:\/\/foxbusiness.com\/\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:READ MORE FROM FOX BUSINESS\" class=\"link\"><strong>READ MORE FROM FOX Business<\/strong><\/a><\/p>\n<p><em>FOX Business\u2019 Megan Henney and Nora Colomer contributed to this report.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>As the Federal Reserve continues its hawkish market reset \u2013 which has contributed to a rise in interest and mortgage rates \u2013 real estate experts Alarms are being raised &#8220;big trouble&#8221; The U.S. market has much to look forward to. &#8220;When you have a rise and increase in interest rates like we&#8217;ve had, that is &hellip;<\/p>\n","protected":false},"author":1,"featured_media":1805974,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[547],"tags":[9027,5458,8567,4214,4545,5001,3819,9873,7238,3633],"class_list":["post-1805971","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-bongino-report","tag-big","tag-bongino","tag-estate","tag-expert","tag-market","tag-real","tag-report","tag-trouble","tag-u-s","tag-warns"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1805971","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1805971"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1805971\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/1805974"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1805971"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1805971"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1805971"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}