Barbara Corcoran On Shark Tank (Image Source – Instagram_@sharktankabc)
Highlights
- Barbara suggests if interest rates on a mortgage hit 5% interest rates the desire to acquire homes might really surge
- Barbara even encourages new home buyers as of now, new home buyersare hitting a record low at 24%
- It might become cheaper in many cities than buying a house currently, but that does not reduce the long-term investment appeal for real estate.
Mortgage rates have been in the range of 6% to 7% for more than two years, and the housing market doesn’t get much tougher for buyers than that. A high price and a low supply are part of the challenges people face in finding a property. There is, however, some advice that could help from real estate guru and “Shark Tank” personality Barbara Corcoran.
Barbara believes that clients can still find good deals if only they think out of the box. “The best way to find value is where others are not looking,” she says. She advises home buyers to focus on homes that have been on the market for a long time, shop during off-season, and consider fixer-uppers. These properties often come with lower prices and less competition.
The Impact Mortgage Rates Have in the Market Recently, Corcoran appeared on Good Morning America’s “The State of Real Estate,” to share insights in how mortgage rates influence the market. She commented that if those rates were able to drop back into the 5% arena, it was going to drive a home buying frenzy. According to Corcoran, when mortgage rates become 5% the market becomes ballistic. Most importantly, first-time buyers form the biggest crisis today.
“Right now, less than 24% of buyers are first-time homeowners. That’s an all-time low,” she pointed out. This is concerning because first-time buyers help drive a healthy real estate market. Without them, demand slows, and home prices stay high due to limited movement in the market.
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Should You Rent or Buy?
She broke down the numbers to help people decide whether to rent or buy. “Rent prices have increased by 19%, while home prices have surged by 54%,” she said. This means that renting is currently the more affordable option for many people. However, Corcoran argues that buying a home is still a smart long-term investment. Home values tend to rise over time making property ownership a good way to build wealth.
Where Are Homes More Affordable?
Cities that Corcoran deems affordable to buy in are Chicago, New Orleans, Miami, Memphis, and Pittsburgh. To her, these cities above are relatively less pricey compared to most other big cities. That is, the best bet in cities such as San Francisco, Seattle, New York City, and Salt Lake City, which are too pricey to buy in, maybe to rent.
The Importance of Home Insurance
She also mentioned the risks of homeownership in states like California and Florida, which have their natural disaster risks. Her neighbor in California lost her insurance because her payment was ten days late. “A lot of homeowners in California don’t even have insurance,” she said. With wildfires and other natural disasters becoming more commonplace, she pointed out the necessity of keeping policies current and making sure one reads the fine print.
Even after these challenges, Corcoran believes that real estate is among the best investments a person could make. In fact, she encourages buyers to take a strategic approach: maybe wait for the mortgage rates to drop, maybe look for underpriced properties, or maybe consider renting temporarily. Her advice is clear: be patient, do your research, and don’t be afraid to explore options others might overlook. Following these strategies allows for smarter decision-making in today’s tricky market.
Entrepreneur, auteur, raconteur. Rob Merlino is a blogger and writer who enjoys the Shark Tank TV show and Hot Dogs. A father of five who freelances in a variety of publications, Rob has a stable of websites including Shark Tank Blog, Hot Dog Stories, Rob Merlino.com and more.
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