Real estate entrepreneur and “Shark Tank” star Barbara Corcoran predicts a significant rise in home prices once interest rates drop. She believes that the current “bottleneck” in the real estate market, caused by sellers unwilling to move due to higher interest rates and buyers hesitant to purchase, will break once interest rates decrease.
Surge in Buying Activity Could Spur 20% Rise in Home Prices
Corcoran expects a surge in buying activity and a potential 20% increase in house prices. Despite a recent report indicating the first annual decline in home prices in 11 years, Corcoran notes that this is not the case everywhere, with prices in the Southwest and South Florida still rising.
Corcoran: 2008 Style Housing Crash Not Likely
She does not anticipate a major housing market crash similar to 2008, as homeowners are not overleveraged.
“There’s really no comparison to now compared to what came before,” she said.
The Commercial Real Estate Market
However, she predicts a slow recovery for the commercial real estate market, with high vacancy rates and low confidence in a turnaround.
Read more at Go Banking Rates.