Jason Oppenheim, founder of The Oppenheim Group and star of Selling the OC, addressed the challenges facing the real estate market amid high interest rates in a recent interview with Inman.
Oppenheim indicated that the current market is experiencing pressure due to elevated rates, which he described as making “real estate the sacrificial lamb of high interest rates.”
Speaking to Inman on November 11, he said,
“I don’t understand [the Fed], they’re too wonky and too nerdy, and they lack all common sense.”
The interview, conducted ahead of the Selling the OC Season 4 premiere, also explored the status of listings and buyer activity in Newport Beach and Los Angeles.
Oppenheim discussed trends in the Newport Beach market, noting that it had experienced a period of growth but may have peaked about a year ago.
He said that interest rates should be reduced by 150 basis points from current levels and described real estate as the "sacrificial lamb" of high rates.
According to Oppenheim, the market is adjusting as buyers step back due to uncertainty. Alex Hall, a returning cast member, explained:
“I think we’re already starting to see the price reductions, even where we are, and I feel like we also start to see the trends later than the rest of the country, because we’re such prime, prime real estate.”
Listings in Newport Beach are staying on the market longer, and sellers are making more frequent price reductions.
These developments align with Oppenheim’s forecast that the market requires lower interest rates to stabilize.
Interest rates set by the Federal Reserve were a major topic during Oppenheim’s interview. He criticized the Fed’s approach, saying,
“Always way too late … everyone with common sense knew that they needed to raise rates when people were getting, you know, 2 percent loans. You saw the price of assets going crazy.”
He added that the "truth" is the Federal Reserve needs to lower interest rates by about 150 basis points for the market to stabilize.
The current friction in the market is attributed to buyers and sellers being unable to transact efficiently due to high rates.
Oppenheim emphasized that a reduction in rates could create a “more frictionless environment” for both buyers and sellers.
Oppenheim also shared guidance for agents navigating the current climate. He explained that for many agents, the past two or three years have been challenging and advised them to “wait it out.”
He added that this period is when agents focus on building a database and clientele, which will provide rewards in a few years once interest rates are lower.
He discussed the differences between markets, citing Los Angeles specifically, saying:
“Right now, there’s too much friction. There’s too many locked-up sellers and buyers that just can’t afford to buy. So that’s what I’m looking forward to, is just a more frictionless environment. And Los Angeles, they’ve got to get rid of mansion tax or fix it.”
These statements highlight Oppenheim’s focus on structural challenges and regulatory factors affecting transaction activity in the high-end property markets where The Oppenheim Group operates.
Stay tuned for more updates.
TOPICS: Selling the OC Season 4, Netflix, Selling the OC, Jason Oppenheim, Selling the OC Jason Oppenheim, The Oppenheim Group
