Fox News real estate contributor Katrina Campins argues that “something needs to happen in the housing market” as supply challenges create obstacles for the industry.
2025 marks a Reappearance in the list of houses According to Mauricio Umansky, founder and CEO of the agency, and sales in the US real estate market after years of stagnation.
Although there is some uncertainty in the real estate market, such as when and how much interest rates will come down, Umansky said we will eventually see some movement.
Umansky, also known for her appearances on The Real Housewives of Beverly Hills, has a global real estate agency with more than 130 offices in 12 countries. It has just released its fifth annual Red Book, a comprehensive wealth report that includes an in-depth assessment of the luxury real estate market and future expectations for the rapidly changing industry.
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If it weren't for the pandemic, which caused significant changes in the residential and commercial real estate market, Umansky believes we would “already start to see a Big price fix”
Usually when you have very low deals, like we saw in the '90s, prices start to come down and “buyers start to come back into the market because now it's a value play,” he said. But due to the lack of supply in the industry, the prices had not decreased to this extent.
Agency CEO Mauricio Umansky and President Rene Hawk Austin stand outside one of their offices. (agency)
Sellers who started at record-low mortgage rates of 3 percent or less during the pandemic have been reluctant to sell, further limiting supply and leaving few options for eager buyers. But high interest rates prevented even high net worth deals.
According to the agency, 66.67 percent of agents reported that interest rates directly affect the expensive market. Umansky explained that while many wealthier clients prefer to pay in cash, they often choose to borrow against their real estate portfolio to put their capital to work for them and generate returns.
A year and a half ago, he recalls telling salespeople to be patient “because there are no fish in the ocean.” He said there are buyers today, though, looking for value, and emphasized how it remains a buyer's market.
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In 2025, “there will definitely be an increase in transaction volume. Everything will move to the right,” Umansky said.
He said the company believes there will be an increase in supply and a rate cut, although the exact rate will depend on broader economic factors.
A For Sale sign is displayed outside a home for sale on August 16, 2024 in Los Angeles, California. (Photo by Patrick T. Fallon/AFP) (Photo by Patrick T. Fallon/AFP via Getty Images) / Getty Images)
According to this report, the stock of the warehouse from January to November 2024 has increased by 66.67% compared to the same period of the previous year. It is expected that these factors, along with increasing confidence in the economy, will bring more people into the market.
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Historically in New York, the market freezes from mid-September to the end of November during election years, according to Mike Birella, agent for the New York agency.
“Regardless of who wins, 50 percent of the people are upset and people think the world is going to end, and then in January or February everything goes back to normal and usually in March we'll see the market come back.”
Contractors work on a home under construction on Tuesday, June 14, 2022 in Antioch, California, United States. (Photo: David Paul Morris/Bloomberg via Getty Images/Getty Images)
Umansky predicted that prices are expected to decline in the luxury real estate market, particularly in terms of final sale prices.
While asking prices may not be falling, Umansky explained that the difference between the bid and ask prices is shrinking. Sellers are increasingly accepting offers that are much closer to the asking price than their original price.
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Given that it's a buyer's market, sellers in 2025 “need to listen to the market” and make sure they understand the current value of their home, according to Umansky.
If they're not willing to sell at a certain price, Umansky advised, they should take their homes off the market entirely to avoid accumulating days on the market and getting stale.
“If you're not selling, you need to look at your price,” he said.