Banks are cashing in while homebuyers struggle—Here’s why

Banks have the upper hand in the real estate market.

Transcript

00:00So the balance is definitely tilted towards the banks because rates are high and there's

00:03significant profits being made across the banking sector right now.

00:08The mortgage, and we use mortgages all day long, the mortgage is a product.

00:15It's a product that in cities like New York City, if you have a mortgage recording tax

00:20here, I have to have that conversation with people who've never bought a place in New

00:23York City before and come and say, listen, this is what your average home price is going

00:27to be.

00:28Let's also talk about closing costs.

00:29In New York City, you also pay a tax on your ability to get a mortgage.

00:35So that in part fuels cities.

00:37Should they use that revenue wisely?

00:38A lot of them do not, but it is a product.

00:43And so buyers today, I think, have some more kind of opportunity to buy homes at the right

00:50prices today than they have over the past couple of years.

00:52You're seeing some price increase, but you're seeing a lot of negotiability on listings

00:56now than we've seen over the past 24 months.

00:59I think sellers, if you're priced right, you can still sell quickly.

01:02Nationally, I think the average days on market right now is just under 10 days.

01:07Some markets it's one, some markets it's seven.

01:10Some markets, urban markets, if you're overpriced, you can still put your house on the market

01:13and never find a buyer.

01:14But I think the banks are the ones who are reaping the rewards today, and I'm looking

01:17forward to that moving back to the customers.