Barbara Corcoran believes the real estate market is on the cusp of a significant change. She asserts that mortgage rates dropping into the 5% range will spark a vigorous market response. Currently, these rates linger at 6.96%.
Corcoran, a well-known real estate expert, foresees a drop in mortgage rates to the 5% range within the next year. She remains optimistic, highlighting, “Anything with a 5% in front of it is going to make this market go ballistic.” Her insights come at a time when existing home sales showed a notable increase of 3.4% from the previous month.
There are more housing options available, reportedly increasing by 25%. This, combined with buyers becoming accustomed to the current rates, has sustained market activity. Corcoran stated on Fox Business, “The buyers themselves have gotten accustomed to the rates being what they are and they just got tired of waiting.”
Real estate dynamics are evolving, with first-time buyers facing unique challenges. The National Association of Realtors recently reported the median age of first-time buyers rose to 38, reflecting the impact of higher interest rates. Meanwhile, repeat buyers continue to dominate due to their ability to make larger down payments.
Corcoran expressed her hopes for more favorable conditions, saying, “I say my prayers at night and pray for lower interest rates.” Despite the challenges, nearly a third of repeat home buyers have purchased homes with all cash, demonstrating resilience and adaptability in the market.
Overall, the real estate market’s future remains compelling as it navigates fluctuating interest rates and shifting buyer demographics. Corcoran’s predictions bring hope that a decrease in rates could invigorate the market to new heights.
Barbara Corcoran‘s predictions could be pivotal for the real estate market. Her conviction that lower rates will revitalize the market is a beacon of hope for many potential buyers and sellers.
Source: Entrepreneur – Instagram
