Industry News

Some housing markets in for short-lived correction

Future-Proof: Navigate Threats, Seize Opportunities at ICNY 2018 | Jan 22-26 at the Marriott Marquis, Times Square, New York

MIAMI -- The housing market in some parts of the country has slipped into a short correction that's not expected to be as severe as past downturns but strong enough to challenge the real estate industry to rethink business practices. "Realtors are in for a very tough road," said Richard DeKaser, senior vice president and chief economist for National City Corp. "They make money on transactions, and we will see a 25 percent decline over the next 12-month period with all kinds of pricing pressure coming," he said during a panel discussion at Inman News' Connect High Net conference this week in Miami. Lenders, on the other hand, have one silver lining, he said. Mortgage volumes will be down, but many consumers migrated from the traditional 30-year fixed-rate mortgage to adjustable and other newer loan products during boom years, and they will create some refinance business for lenders in the next few years. John Tuccillo, founder of John Tuccillo & Associates and former chief economis...