Home sellers may have to ‘take a hit’ as rates rise, real estate experts say

Real estate insiders warn of a frozen market as Fed raises rates for first time in three years

American homeowners expecting peak-market valuations are confronting a changing real estate landscape following the Federal Reserve’s latest interest rate decision.

Rising borrowing costs are shrinking the pool of qualified buyers, signaling a potential wave of price reductions for sellers seeking to close deals before year-end, real estate insiders told Fox News Digital.

“Sellers have… very high expectations. And it takes a while for sellers’ expectations to come down. And that’s the reality,” DaGrosa Capital Partners founder and chairman Joe DaGrosa told Fox News Digital. “With respect to buyers, I think a lot of people are going to have to wait it out. And wait and see a better situation on the mortgage front… [there’s] going to be some pressure. So I think it’s going to be tough on buyers and it’s going to be tough on sellers.”

https://www.foxbusiness.com/real-estate/home-sellers-take-hit-rates-rise-real-estate-experts-say