While big players like Blackstone, KKR and Bain Capital are buying in, Fernando de Leon, founder of Leon Capital Group, said he is sitting out.

Mortgage rates moved higher after the Fed cut interest rates last week. That caused demand to drop for both home buying and refinancing.

Zillow shares fell more than 11% on Monday as investors grew concerned that Google could be testing real estate listings on its search page.

Weaker prices mean homeowners are starting to lose equity after several years of huge gains.

Home prices have not gone negative since mid-2023, a year after the Federal Reserve first brought rates up from zero, and mortgage rates moved sharply higher.