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- Elon Musk stated this week that the home price will soon fall, after commercial real estate.
- Redfin CEO said that the decline in demand for commercial property is driving demand for residential properties.
- Glenn Kelman, a Twitter user, tweeted that people who work at home need more room.
Elon Musk, a billionaire investor and real estate developer, said that the price of houses is set to plummet. He also predicted that commercial property prices would "melt down fast" as well.
Redfin's CEO Glenn Kelman, however, countered this in a Tweet of his own posted on Tuesday.
The demand for residential property is driven by the decline in commercial real estate. People who work at home need more room in their homes. Inventory is low, which is affecting sales volume. Home prices rose today for the second consecutive month."
–Glenn Kelman (@glennkelman) May 30, 2023
Musk's initial reference to empty commercial buildings was due to the remote-work boom, and the waning demand for office space.
Kelman said, however, that prices of homes are on the rise as Americans look for more space at home to work.
The S&P CoreLogic Case-Shiller National Home Price Index rose 0.4% on Tuesday compared to February. This is the second consecutive monthly increase.
Case-Shiller data indicates that home prices have declined 2.2% on an annual basis. The West Coast has seen a decline in price, while the East Coast has seen a rise.
The outlook is uncertain for home prices. Zillow claims that home prices are already at their lowest point, but Moody's and Fannie Mae expect further price drops.
Tesla's chief executive's worries are not unique. The Federal Reserve's interest rate increases have caused alarm among economists and other commentators.
Mortgage payments increase as interest rates rise, and homes become less affordable.
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By: prosen@insider.com (Phil Rosen)
Title: Elon Musk said home prices will crater – and it prompted a sharp rebuttal from the CEO of housing giant Redfin
Sourced From: markets.businessinsider.com/news/stocks/elon-musk-housing-home-prices-markets-redfin-tesla-chief-twitter-2023-5
Published Date: Wed, 31 May 2023 14:58:20 +0000
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