Charlottesville, VA (CVILLE RIGHT NOW) – Real estate expert Michael Guthrie, president emeritus of Howard Hanna Roy Wheeler Realty and host of Real Estate Matters, joined Morning News to discuss the ongoing challenges in the housing market, particularly interest rates and economic uncertainty.

Guthrie compared the unpredictability of interest rates to an irregular heartbeat, emphasizing the market’s volatility. “The heart just keeps on skipping a beat, it’s not a regular heartbeat, which is creating uncertainty in the marketplace,” he said. 

Guthrie highlighted that while interest rates briefly dipped below 7% last week, they crept back up following inflation concerns. He noted that broader economic uncertainty, including potential job cuts at the Federal Executive Institute, is causing hesitation among buyers and sellers. “If people were thinking about buying a house or putting their house on the market, are also thinking, ‘Whoa, whoa, whoa. I’m going to wait and see how this all plays out,” he explained. 

Despite these concerns, Guthrie pointed out that some buyers are adapting to higher rates and moving forward with purchases. “There are people that are that are getting comfortable, not happy but comfortable with 7% or a little bit, you know high sixes or whatever,” he said. He shared an example of a recent home listing that received two offers and sold at full price within days, proving that well-priced homes in good condition are still in demand. As he wrapped up, Guthrie emphasized the long-term benefits of homeownership, encouraging those who can afford it to take advantage of the market. 

Listen here for the full conversation: