- Home prices in the US could fall as much as 10% in some markets, according to Kirsten Jordan.
- The "Million Dollar Listing" agent said the booming demand seen in some markets during the pandemic is fading.
- Still, mortgage rates are likely to remain elevated for some time.
Prospective homebuyers may soon feel some relief as home prices are headed for a sharp correction in key areas of the US housing market, according to the "Million Dollar Listing" real-estate agent Kirsten Jordan.
"[I] really believe that right now we're going to see a slight correction in prices of homes. This is the opportunity for buyers to get into the market, Jordan said in an interview with Fox Business Network on Wednesday.
The celebrity realtor predicted home prices could fall 5%-10% in parts of the US that are finally starting to normalize after seeing inflated demand during the pandemic.
"It was people moving around the country for a little while when they can work remotely, [and] they had access to a lot of cheap money. I think that's where we're going to see this lagging correction adjustment that will come over the next several quarters," Jordan said.
Home prices are already beginning to drop in key metros like Florida and in Texas, Redfin said in a recent report. Cities in New York, Colorado, Oregon, and other states are also seeing price declines, according to the National Association of Realtors.
Homebuyers have been waiting for prices to come down for the last year, with prospective buyers being pushed out of the market amid the high housing costs and mortgage rates. The 30-year fixed mortgage rate hovered near 7% the last week, according to Freddie Mac.
Housing affordability likely won't significantly improve until mortgage rates cool, which isn't likely soon. Mortgage costs are impacted by real interest rates in the economy, and the Federal Reserve has said it's in no rush to lower interest rates while inflation is above target and the economy is strong.
"We're seeing these rates that have come up, and they're probably going to be there longer than you'd think," Jordan said.
US home prices have climbed so far this year. The median sale price of a home rose to $439,716 in May, according to Redfin data, up 5% in a year.