At GOBankingRates, we recently wrote about Barbara Corcoran’s prediction that housing prices will “will go through the roof.” She had said during a Fox Business Interview that although we are facing a bottleneck, it will not last forever and house prices will rise as soon as mortgage rates to tear down.
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We asked real estate experts from across the country to comment on these predictions and provide some information about what they expect from the real estate market next year. Here’s what they had to say.
What predictions did Barbara Corcoran make?
Often referred to as the Queen of New York Real Estate, Barbara Corcoran made a fortune in the industry. The real estate mogul won the title after building the biggest residential property in the Big Apple.
The founder of the Corcoran Group now stars and executive produces the hit ABC TV show Shark Tank and is known for her practical advice and smart investments. She is regularly asked to provide insight into the property market and has an enviable track record of being spot on with her predictions.
Barbarian was recently interviewed by Fox Business about her opinion on the real estate market. During the interview, she noted that there is no relationship between the commercial market, which is in recession, and the residential market, which she sees as recovering.
Corcoran expects that the minute interest rates fall, “all hell will break loose and prices will skyrocket.” She predicts that housing prices could rise by 20% when the rate is reduced.
She explains, however, that this can vary significantly depending on the region – especially given the high prices in coastal areas over recent years.
See more information: Barbara Corcoran Says, ‘Forget Florida,’ Move Here for Cheap Homes
Is Barbara Corcoran right?
Andreis Bergeron, founding member of Awning.coman Airbnb management company, said “Barbara Corcoran’s insights into the real estate market are always worth considering, given her extensive experience and success in the sector.
“It suggests that housing prices will soar,” he continued, “which is a possibility supported by current low inventory levels and high demand in many areas. However, real estate markets are deeply local and such forecasts can vary significantly by region and city.”
Why the market may vary by region
Bergeron added: “In some of the markets where Awning.com manages properties, we have noticed that while central urban areas are experiencing a plateau in prices, suburban regions are seeing an increase, possibly driven by the continued trend towards remote work. Anecdotal evidence from our operations supports the idea that certain less dense areas could indeed see the kind of growth that Ms. Corcoran predicts.
“Furthermore, from a data-driven perspective, our analysis often reveals patterns that are not immediately obvious without in-depth analysis of specific metrics such as rental yields, occupancy rates and indicators of local economic growth,” he explained. “These insights are crucial to understanding the nuances by which macro forecasts can work in specific locations.”
Why Corcoran’s advice is ‘sound’
Brett Johnson, owner of New Age Home Buyers, said: “When interest rates fall, it typically stimulates an increase in demand for housing. Lower rates make mortgages more affordable, attracting buyers to enter the market.”
The Colorado real estate investor and licensed agent explained, “Throughout my career, I’ve noticed that even a slight reduction in interest rates can trigger an increase in home purchases. Buyers who were hesitant before suddenly find themselves with purchasing power, which leads to increased competition and higher prices.”
He added, “Furthermore, in Colorado’s real estate landscape, where demand often outstrips supply, any drop in interest rates could amplify bidding wars, pushing prices higher.”
“However,” he said, “it is important to recognize that while lower interest rates can push prices up, they do not always guarantee growth. Market conditions, economic factors and local dynamics all play a role. Therefore, while I agree with Barbara Corcoran’s point of view, a thorough analysis and understanding of the market is crucial for both investors and homebuyers.”
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This article originally appeared on GOBankingRates. with: Is Barbara Corcoran right about the housing market?
