Barbara Corcoran, a well-known real estate mogul and star of the hit TV show „Shark Tank,“ recently made some bold predictions about the future of the housing market. According to Corcoran, mortgage rates are set to hit a „magic number,“ which could lead to a surge in housing prices. In this article, we will explore Corcoran’s predictions and provide some tips on how you can prepare for these potential changes in the market.
Currently, the average 30-year mortgage rate is around 7%, which has deterred many potential buyers from entering the housing market. However, industry experts are forecasting that rates will decrease in the coming months. The Mortgage Bankers Association predicts that rates will end at 6.1% by the end of 2024, while Fannie Mae anticipates a dip to 5.9% during the fourth quarter. Corcoran believes that if rates drop by just one percentage point, it could trigger a buying frenzy and cause housing prices to skyrocket.
In a recent interview on Fox Business‘ „Cavuto: Coast to Coast,“ Corcoran explained, „If rates go down just another percentage point — that’s what I’m hoping for by year-end — prices are going to go through the roof because everyone will come out and buy.“ She emphasized that waiting for rates to decrease further may not necessarily result in savings for buyers, as prices could increase significantly in response to heightened demand.
Corcoran referred to this anticipated decrease in mortgage rates as a „magic number“ that could entice buyers to enter the market. She warned that delaying a home purchase in hopes of lower rates could backfire, leading to higher prices in the long run. According to data from Redfin, the median U.S. home-sale price reached a record high of $397,482 in July, reflecting a 4.7% year-over-year increase.
For those who are not yet ready to buy a home but still want to invest in real estate, there are alternative options available. Platforms like Arrived and Ark7 offer opportunities to invest in shares of vacation homes, rental properties, and residential units with relatively low barriers to entry. These platforms allow investors to earn passive income without the responsibilities of property management.
Additionally, investing in commercial real estate through firms like First National Realty Partners (FNRP) can provide exposure to high-quality properties leased by major brands. FNRP specializes in necessity-based commercial real estate, which tends to perform well even during economic downturns. Accredited investors can benefit from passive income streams while FNRP handles the deal-making process.
As the Federal Reserve is expected to introduce cuts to the federal funds rate in the near future, it is crucial for prospective buyers to prepare for potential changes in the housing market. Seeking advice from financial professionals, such as brokers or financial advisors, can help individuals navigate the evolving landscape of real estate investments. Platforms like Advisor.com can connect individuals with experienced financial advisors who can assist in developing a plan to achieve homeownership or retirement goals.
In conclusion, Barbara Corcoran’s predictions about mortgage rates and housing prices serve as a reminder for individuals to stay informed and proactive in their real estate decisions. By staying ahead of market trends and seeking guidance from experts, buyers can position themselves for success in a dynamic and competitive housing market.