Mauricio Umansky, a real estate mogul, and TV personality, has commented that the ultra-wealthy home market is down, and people are experiencing a housing recession.
MarketWatch reported that the luxury real estate market is affected by the slide down in the housing market. Luxury real estate is taking a hit because of high mortgage interest rates. It also has a slow flow of new listings.
Mauricio Umansky, who is a Los Angeles-based real estate entrepreneur, said that the housing market is at the present in a recession. However, the market’s recovery can begin once the prices drop, and the inventory builds.
The sliding number of homes in the market frustrates many buyers. And in New York City, economic uncertainty caused a slump in real estate activity. Also, sellers do not want to give up the ultra-low mortgage rates they secured during the pandemic.
As covered by Mauricio Umansky, the downslide in the housing market did not spare the super-rich. The luxury real estate in ritzy suburbs such as Beverly Hills and Manhattan has felt the heat.
Mauricio Umansky, CEO of The Agency, spoke on launching his new book, The Dealmaker. He said the real estate market is slow, and we are in a housing recession.
The biggest frustration of buyers is the few numbers of homes in the market. Zillow covered 22.3 percent fewer new listings in the market in March than last year.
In N.Y. City, the real estate market shivered from the 1st half of 2023. This data is according to the Coldwell Banker Warburg report. Activity has dipped on the back of economic insecurity. In the first 2 months of 2023, few listings were sold at the high end of the housing market. This refers to homes that are priced at dollars 10 million and more.
Mauricio Umansky specializes in selling homes for over $20 million. He said that some of the reasons his buyers are facing trouble with a few listings are that sellers are unwilling to give up ultra-low mortgage rates.
He said that everybody is scared of the rates. That is the reason why everyone is seeing a downslide in transactions. Another problem is that not only that the buyers are being scared of the rates, but it is the sellers that do not want to ignore ultra-low mortgage rates.
The rates are rising above 6 percent. And many broader regulatory forces are at play in Los Angeles that are also now complicating the situation for buyers and sellers.
In recent times, the city of Los Angeles has imposed a “mansion tax” also on homes that are sold for dollars 10 million or above. The new tax is 0.5 percent of the sale price for homes sold between dollars 10 million and 20 million. And 1 percent for homes that are sold above $20 million.
Umansky remains optimistic despite several challenges. He said that they have started to see inventory build a bit. This is good because once they see inventory build, they see costs drop. They will start seeing a recovery in the market.
The super-rich is not immune to the several effects of the slowdown of the housing markets. The luxury real estate sector took a hit. The low inventory of homes for sale is a huge frustration that home buyers face today.