‘Million Dollar Listing’ star on housing market, mortgage rates drop


LIZ: OKAY. ARE YOU IN THE MARKET TO BUY A HOUSE? THIS WEEK THE AVERAGE FIXED RATE FOR A 30-YEAR MORTGAGE CAME IN AT 3.75%. NOW THAT IS A SLIGHT GAIN FROM LAST WEEK, BUT MORE THAN A FULL PERCENTAGE POINT BELOW THE 4.68% FROM JUST A YEAR AGO. SEEMS LIKE A BUYER’S MARKET, BUT THE ANSWER MAY NOT BE SO CLEAR. LET’S GET TO THE STAR OF THE HIT BRAVO TV SHOW “MILLION DOLLAR LISTING LOS ANGELES”. HE’S THE REAL ESTATE AGENT WITH 2 BILLION DOLLARS IN SALES UNDER HIS BELT. JOSH FLAGG JOINS US NOW IN A FOX BUSINESS EXCLUSIVE. YOU LOOK SO L.A., JOSH. THANKS FOR JOINING US.>>THANK YOU. LIZ: LET’S GET TO THIS QUESTION OF WHETHER — IT SEEMS LIKE AN OBVIOUS BUYER’S MARKET BECAUSE THE 30-YEAR FIXED RATE IS SO UNBELIEVABLY LOW, AND, YOU KNOW, THE FEDERAL RESERVE MAY MEET NEXT WEEK AND DECIDE TO CUT RATES AGAIN.>>WELL, HERE’S THE THING, AND I WROTE AN ARTICLE ON THIS, WHICH ACTUALLY A LOT OF REALTORS THOUGHT WAS REALLY FASCINATING BECAUSE THEY DIDN’T THINK ABOUT THIS BEFORE, BUT LET’S HYPOTHETICALLY SAY YOU BUY A HOUSE RIGHT NOW, YOU ARE AT A LOW INTEREST RATE. MAKES SENSE. BUYER’S MARKET. LET’S DO IT. IF THE PRICES ARE DROPPING OVER THE NEXT FEW YEARS, POTENTIALLY THE INTEREST RATES ARE GOING TO GO UP, WOULDN’T YOU RATHER BUY A HOUSE FOR A MUCH LOWER PRICE AND TWO YEARS FROM NOW AND PAY HIGHER INTEREST RATE OR WOULD YOU WANT TO PAY TOP DOLLAR STILL AT A LOWER INTEREST RATES? LIZ: I DON’T KNOW, THAT’S WAY TOO COMPLICATED TO ME. I LOOK AT RATES AND SAY YOU SHOULD BUY NOW. YOU WOULD GET A FAIRLY PRICED HOUSE AT THE LOW INTEREST RATES. THE PROBLEM IS INVENTORIES, WE SAW NEW HOME SALES DAY MONTH OVER MONTH DOWN ABOUT 7/10 OF A PERCENT. OBVIOUSLY THAT’S BECAUSE THERE’S A REAL LACK OF INVENTORY WHAT ARE YOU SEEING ON, LET’S SAY, MIDDLE OF THE ROAD HOMES, NOT THE FANCY PANTS STUFF FOR THE STARS?>>OKAY, NOT THE FANCY PANTS STUFF FOR THE STARS. YOU KNOW, I CAN’T TELL YOU ABOUT INVENTORY, YOU KNOW, IN THE MIDDLE OF THE COUNTRY RIGHT NOW, WHAT’S GOING ON THERE. I CAN TELL YOU ABOUT INVENTORY, REGARDLESS OF PIECE, INVENTORY IN LOS ANGELES. THERE IS A LITTLE INVENTORY, BUT THERE IS A A LOT OF INVENTORY IN CERTAIN SECTORS. FOR INSTANCE, THE MODERN WHITE BOX, WHICH ALL THESE DEVELOPERS HAVE BEEN BUILDING FOR, YOU KNOW, THREE OR FOUR YEARS, THAT’S FLOODED RIGHT NOW. THAT MARKET IS FLOODED WITH THESE MODERN WHITE BOXES AND WHEN YOU HAVE SO MANY OF THEM AND THEY ALL LOOK THE SAME, YOU HAVE A PROBLEM, AND BECAUSE OF THAT THE PRICES ARE DROPPING. YOU HAVE THE MEGA HOUSES — LET’S SAY 40 MILLION, 30 MILLION, WHATEVER, IF THEY ARE SELLING AT 20 MILLION, THEN THE 20 MILLION DOLLARS HOUSES ARE NOW SELLING AT 10. AND THE 10 — IT’S CYCLICAL — WILL SELL FOR 5 AND SO ON DOWN TO THE 1 MILLION DOLLARS HOUSES. EVERYTHING AFFECTS EVERYTHING. GOING BACK TO WHAT YOU WERE SAYING ABOUT THE INTEREST RATE THING, THINK ABOUT IT FOR A SECOND. IT IS SIMPLE. WOULD YOU PAY 2 MILLION DOLLARS FOR A HOUSE AT A LOWER INTEREST RATE OR WOULD YOU PAY AT A SLIGHTLY HIGHER INTEREST RATE 1.5 MILLION? THAT’S WHERE — WHY I THINK THAT PEOPLE AREN’T REALLY BUYING RIGHT NOW. THEY ARE WAITING TO SEE WHAT HAPPENS AND MY CLIENTS ALWAYS SAY TO ME, I DON’T UNDERSTAND, WHY DON’T THEY JUST BUY THESE HOUSES, LOW INTEREST RATES? IT IS AFFORDABLE BECAUSE THEY KNOW IT IS GOING TO KEEP GOING DOWN. LIZ: YOUR SELLERS ARE ASKING THAT, I WOULD IMAGINE. HOW CLOSELY DO YOU WATCH POWELL AND COMPANY AT THE FEDERAL RESERVE? WE HAVE THE FED ANNOUNCEMENT NEXT WEEK — IN COUPLE WEEKS, OCTOBER 30TH.>>YOU KNOW, I’M NOT FOCUSED ON THAT. INTEREST RATES ARE GOOD. MY CLIENTELE IS REALLY MORE INTERESTED IN GETTING A DEAL. THEY ARE NOT REALLY AS INTERESTED IF IT’S 3.75 OR 3.8. MOST PEOPLE SHOULDN’T BE THAT CONCERNED WITH IT. YES, OF COURSE, EVERY POINT OR EVERY FRACTION OF A POINT COUNTS, BUT WHAT YOU SHOULD BE CONSIDERING RIGHT NOW IS HOW TO GET THE BEST DEAL ON A HOUSE AND TIMING BECAUSE THAT’S ALWAYS GOING TO BE MUCH MORE IMPORTANT. YOU CAN ALWAYS REFINANCE. WHEN PRICES GO UP, THEY GO DOWN, WHATEVER. OVER TIME, IT WILL HIT THIS AGAIN. I DON’T KNOW WHEN, BUT, YOU KNOW, FOCUS ON THE DEAL, NOT THE INTEREST RATE. LIZ: YOU KNOW WHAT? YOU JUST STATED IT PERFECTLY. RATES WILL PROBABLY GO LOWER, SO YOU WAIT AND GET A BETTER DEAL ON A HOUSE AND MAKE PEOPLE DROP THEIR PRICE. WHAT ARE YOU SEEING WITH YOUR CELEBRITY CLIENTS? ARE THEY VERY SAVVY WHEN IT COMES TO WAITING, OR ARE THEY EAGER TO JUST –>>NO — LIZ: SOME OF THEM ARE SELLING TOO; RIGHT?>>HERE’S THE THING ABOUT CELEBRITY CLIENTS. YOU NEVER DEAL WITH THE CLIENT. YOU DEAL WITH THE BUSINESS MANAGER OR THE ATTORNEY, WHICH IS GOOD AND BAD BECAUSE BUSINESS MANAGERS USUALLY KILL THE DEAL BECAUSE THEY WANT TO SHOW OFF TO THEIR CLIENTS THAT THEY ARE TRYING TO PROTECT THEM. NEVERTHELESS IF YOU CAN MAKE THE DEAL, THE BUSINESS MANAGER IS REALLY ADVISING THEM, LET’S BUY RIGHT NOW, LET’S SELL RIGHT NOW, INTEREST RATES, WHATNOT, BUT AT THE END OF THE DAY, THE CLIENT — HE’S GOING TO ADVISE THAT TO THE CLIENT AND THE CLIENT IS GOING TO SAY I WANT THIS HOUSE. I LOVE THIS HOUSE. PLEASE. THEY ARE GOING TO SAY OKAY, I’M LETTING YOU KNOW THE POTENTIAL OF YOU SHOULD MAYBE WAIT, MAYBE YOU SHOULDN’T WAIT. SO CELEBRITY CLIENTS ARE ALSO A DIFFERENT ANIMAL. I MEAN, THAT’S — YOU SHOULD REALLY FOCUS ON LIKE MY CLIENTS THAT ARE JUST WEALTHY PEOPLE THAT WANT TO BUY HOUSES. THEY ARE JUST KIND OF CHILLING FOR THE MOMENT, NOT DOING ANYTHING BECAUSE THEY ARE WATCHING THE MARKET.

30 Replies to “‘Million Dollar Listing’ star on housing market, mortgage rates drop”

  1. Don't forget the real estate tax! If PRICE is low and interest rate may be high, in two years real estate tax could be high then!

  2. Not in SF or California, in general. The demand far exceeds supply as they have failed to keep up new housing stock to accommodate the increased population.

  3. This guy isn't focused on average American homebuyers. The wealthy have options that we do not have, generally speaking, because they have money. But, I do think he is right about letting prices fall, because they have been severely over inflated for too long. Buy low and refi later when interest rates drop makes perfect sense to those who are not millionaires!

  4. Since we all turned into real estate gurus on here let me throw myself in the mix. I think Ideally what this guy has to say is really good investment theory in general. With that being said, real estate investment can have a lot of variables to consider. Location Location Location is one. Goal for the propriety. If your paying the same for rent and will be your primary or only residence then you have to consider monthly rental cost vs purchase. Investment only properties on the other hand you need to buy market low and that's it. Region of the country you're buying on is important. Let's consider supply and demand. Good luck with your future home purchases! The real estate market can make you or break you.

  5. It’s because “mansions” not only are dated but sit on the market for years.

    But if you look at mid range, it transact like hot cakes most of the time due to practical needs.

    As a RE investor I prefer mid range and brand new! Cash in and cash out. When I can cut out the middle hassles, I do.

  6. I wouldn't live in California for anything. I have no desire even to visit California. If I could afford a Million dollar home, It would not be in California.

  7. The guy is an idiot. Housing prices have steadily increased since 1900 to this current day. There are dips but have steadily increased over the decades.

  8. Million Dollar Homes?Do You have Any IDEA how much time it takes UP?Even if you have maids and butlers?Some of You Wealthy Elite are Missing something US average Folk Spend Time ON!Can You guess what that IS?

  9. House gets 3.75% interest rate? What about condo's interest rate?

    Houses comes with antivirus paintings and piercings?

    Dealer in Los Angels for real estate pieces sounds like sales force in CA working on
    CSR,
    CRM,
    SEZ,
    module's. Module is a factory fabricated piece shipped to site where it's easily assembled with less effort's and joined. All real estate's are module's technology with prefabricated walls and shipping to site where the accessories are fitted for use. The main accessories for house are light bulb's. Because house has no light energy only passion.

  10. Jesus where did they find this idiot? They brought the most unequipped and ignorant “realtor” in for his take on multi million dollar homes, how does his nonexistent advice translate to the middle class who stays within the 200-400k range? This flamer didn’t know anything about the housing market outside of his precious California, and listening to him was nothing more than 5 wasted minutes of my life. Next time bring in an ACTUAL realtor who actually knows about the overall market.

  11. Why are they asking million dollar listing stars about rates and the house market when all of their clients are most likely millionaires and billionaires who pay cash for their homes and do not relate to the average person buying anything less than 1 million dollar homes.

  12. 😒WHY! OH WHY! DO YOU INTERVIEW SOMEONE WHO DOES NOT DEAL WITH THE AVERAGE PERSON? the rich who is buying an expensive house doesn’t care or care too much but the average person are those who do most of the buying 😤

Leave a Reply

Your email address will not be published. Required fields are marked *