Former 'Million Dollar Listing Miami' Star Reveals 2023 Real Estate 'Game Changer'

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Real estate has proven to be a “tricky” market to navigate, but one industry expert argues that mortgage rates trending downwards towards the end of 2022 will be the “game changer” in 2023.

“One thing that I would really say is the game changer in real estate is mortgage rates,” Sam DeBianchi of DeBianchi Real Estate, who starred in Miami million dollar listing single season, said in “Mornings with Maria” Tuesday.

“The higher those rates are, the more people want a house. So they want the new house. They want the house with all the bells and whistles. They don’t want the fixers and they want to have everything built into that mortgage.”

HOUSE PRICE RISES SLOW, MAY CONTINUE TO WEAK: CASE-SHILLER

The US Census Bureau reported a 5.8% increase in new home sales in November, and DeBianchi says this can only increase in 2023 as current mortgage rates drive buyers to look for new homes instead of renting or renting. buy repairs.

“Fees have really transformed the buying landscape because now buyers don’t want the fix, they don’t want to break out of pocket. They’re saying, ‘well, if I’m going to have to pay 6% then I want everything for this.’ And that’s really the focus.”

Sam DeBianchi Real Estate Mortgage Rates

Sam DeBianchi of DeBicanchi Real Estate argues that mortgage rates are the “game changer” in the “tricky” real estate market heading into 2023. (FOX Business)

The October S&P Case-Shiller report released Tuesday morning showed that home prices have fallen across the country for the fourth consecutive month, contributing to the surge in home sales.

“As the Federal Reserve continues to raise interest rates, mortgage finance remains a drag on home prices,” said Craig J. Lazzara, managing director of S&P DJI, in the report. “Given the continued outlook from a challenging macroeconomic environment, prices may continue to weaken.”

DeBianchi echoed that analysis, arguing that while home prices may fall, mortgage rates are still an important factor for homebuyers.

“It’s predicted next year that the median price will be $385,800 for an existing home, not a new home, but an existing home. And obviously, as rates go up, a lot of people are left out.”

MORTGAGE RATES CONTINUE DOWN TREND, FALLING FOR SIX WEEK

Despite the recent drop in rates over the past six weeks, year-over-year mortgage rates have seen a dramatic increase over the past year. Last week, the 30-year fixed rate averaged 6.27%, down from 6.31% the week before, but more than double the 2021 30-year FRM rate at 3.05%.

The 15-year fixed-rate mortgage averaged 5.69% up from two weeks ago, when it averaged 5.54%. A year ago, the 15-year FRM averaged 2.30%.

DeBianchi explained that many homebuyers are opting to buy a home to reap the benefits and look to refinance in the future, but low inventory remains an issue.

“It’s supply and demand; inventory is so tight. So there’s still not much to really pull those prices down.”

Still, insisted the real estate expert, people are gravitating towards home ownership.

“What I’m seeing are [sic] that shoppers are saying, ‘you know what? There’s not a lot of stock out there. Rents are still too high. So I’m going to go ahead and buy this house now.'”

Sign for sale in front of building

A For Sale sign in front of a house in Washington, DC, on March 14, 2022. (STEFANI REYNOLDS/AFP via Getty Images/Getty Images)

Debianchi referred to many homeowners as being “over-leveraged”, which she explained will eventually cause more properties and homes to hit the market and drastically expand the inventory for buyers.

“So there’s money to be made. Don’t get greedy. But I think there are some people overleveraged and we’ll see these properties hit the market. Will it crash? No, but at least we’ll have a lot more homes and opportunities for people to buy.”

While the end of 2022 saw a significant increase in new home purchases, there was a 7.7% November drop in existing home sales.

DeBianchi attributes the trend of new home purchases to buyers wanting more bang for their buck, given the inflated price and significantly higher mortgage rates compared to this time last year.

“It’s a tough market. I think with rates coming down, that’s going to change the game.”

Jay Spoehel and Megan Henney of FOX Business contributed to this report.

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