Denver, Colorado – As the housing market continues to fluctuate, real estate expert Barbara Corcoran suggests that now is the ideal time to consider purchasing a home. Despite a slight decrease in mortgage rates, Corcoran warns that waiting for further reductions could lead to increased competition and soaring prices, ultimately diminishing the buyer’s advantage.
According to Freddie Mac, the benchmark 30-year fixed mortgage rate fell to 6.79% last week, down from the peak of 7.79% in October. While lower rates may seem appealing to potential buyers, Corcoran believes that a significant drop in interest rates could trigger a surge in demand, propelling prices to unprecedented levels.
Corcoran, renowned for her role on Shark Tank and as the founder of the Corcoran Group, emphasized the current trend of rising home prices amidst intense competition in the market. With record growth in home prices observed in January, fueled by eager buyers entering the market, bidding wars have become increasingly common, further driving up prices.
The lack of housing inventory has also played a significant role in the market dynamics, with existing home sales in 2023 hitting their lowest point since 2005. The scarcity of available homes has led to a spike in prices, defying expectations and challenging buyers in their search for affordable properties.
While recent data from the National Association of Realtors (NAR) indicates a slight improvement in inventory levels, with new listings increasing in February, the overall supply of homes remains constrained. NAR Chief Economist Lawrence Yun suggests that buyers and sellers are gradually adapting to the new normal of higher mortgage rates, indicating a potential stabilization in the market.
Despite the challenges posed by limited inventory and rising prices, Corcoran advises potential buyers not to delay their homebuying plans. Emphasizing the importance of seizing opportunities in the current market, she recommends taking proactive steps to stand out as a buyer, such as crafting personalized “love letters” to homeowners to express interest in their properties.
With experts like economist Mark Zandi projecting a gradual recovery in the housing market over the coming years, prospective buyers are encouraged to assess their options carefully and act decisively in navigating the evolving real estate landscape. As the market continues to evolve, staying informed and proactive in decision-making can be pivotal in achieving successful outcomes in the homebuying process.