{"id":7991,"date":"2023-06-14T18:16:24","date_gmt":"2023-06-14T18:16:24","guid":{"rendered":"https:\/\/imsfund.com\/?p=7991"},"modified":"2023-06-14T18:16:24","modified_gmt":"2023-06-14T18:16:24","slug":"barbara-corcoran-unlike-elon-musk-says-home-prices-will-go-through-the-roof","status":"publish","type":"post","link":"https:\/\/imsfund.com\/index.php\/2023\/06\/14\/barbara-corcoran-unlike-elon-musk-says-home-prices-will-go-through-the-roof\/","title":{"rendered":"Barbara Corcoran, Unlike Elon Musk, Says Home Prices Will \u201cGo Through The Roof\u201d"},"content":{"rendered":"<p> <br \/>\n<\/p>\n<div :class=\"{ 'hidden': $store.proContent.showFullPrompt() }\">\n<section class=\"px-4 relative border border-slate-200 mobile-toc lg:hidden\" x-data=\"{open:false}\">\n<button class=\"flex items-center gap-4 my-2 border-none w-full\"><br \/>\n<svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"h-6 w-6\" fill=\"none\" viewbox=\"0 0 24 24\" stroke=\"currentColor\" stroke-width=\"2\"><path stroke-linecap=\"round\" stroke-linejoin=\"round\" d=\"M4 8h16M4 16h16\"\/><\/svg><\/p>\n<h2 class=\"font-semibold text-slate-800 text-base m-0 js-toc-ignore\">In this article<\/h2>\n<p><\/button><\/p>\n<\/section>\n<p><span data-preserver-spaces=\"true\">Another famous name is weighing in on the housing market. A few weeks ago, it was\u00a0<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/elon-musk-says-home-prices-will-drop\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Elon Musk<\/span><\/a><span data-preserver-spaces=\"true\">\u00a0claiming that home values would plummet as commercial real estate faced headwinds. Now, it\u2019s <a href=\"https:\/\/www.youtube.com\/watch?v=P_v-O0t2NP4\" target=\"_blank\" rel=\"noreferrer noopener\">Barbara Corcoran<\/a>\u2014albeit a more experienced source when it comes to real estate\u2014touting the opposite.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">The statements came in a recent interview Corcoran did with Fox Business\u2019s Liz Claman. \u201cThere\u2019s no relationship between the commercial and the residential,\u201d Corcoran told her. \u201cThe residential is starting to rebound, but the commercial is in trouble.\u201d<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">\u201cSo Elon\u2019s wrong?\u201d Claman asked.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">\u201cOf course he\u2019s wrong,\u201d Corcoran said. \u201cYet again.\u201d<\/span><\/p>\n<h2><span data-preserver-spaces=\"true\">An Interest Rate Bottleneck<\/span><\/h2>\n<p><span data-preserver-spaces=\"true\">According to Corcoran, what\u2019s keeping prices from rising much now is a \u201cbottleneck\u201d caused by higher mortgage rates, which now sit at 6.71%, according to Freddie Mac.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Average rates have climbed nearly 150 basis points in just the last year and over 400 since rates were at their lowest\u2014a mere 2.65% in early 2021.<\/span><\/p>\n<figure class=\"wp-block-image size-full\"><picture decoding=\"async\" loading=\"lazy\" class=\"wp-image-153989 sp-no-webp\" title=\"Barbara Corcoran, Unlike Elon Musk, Says Home Prices Will \u201cGo Through The Roof\u201d 2\"><source srcset=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2023\/06\/chart-1.webp 1200w,https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2023\/06\/chart-1-300x158.webp 300w,https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2023\/06\/chart-1-1024x538.webp 1024w,https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2023\/06\/chart-1-768x403.webp 768w\" sizes=\"(max-width: 1200px) 100vw, 1200px\" type=\"image\/webp\"><source srcset=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2023\/06\/chart-1.jpg 1200w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2023\/06\/chart-1-300x158.jpg 300w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2023\/06\/chart-1-1024x538.jpg 1024w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2023\/06\/chart-1-768x403.jpg 768w\" sizes=\"(max-width: 1200px) 100vw, 1200px\" type=\"image\/jpeg\"><img src=\"https:\/\/bpimg.twic.pics\/https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2023\/06\/chart-1.jpg?twic=v1\/cover=1200:630\/max=1000\" decoding=\"async\" loading=\"lazy\" class=\"wp-image-153989 sp-no-webp\" title=\"Barbara Corcoran, Unlike Elon Musk, Says Home Prices Will \u201cGo Through The Roof\u201d 2\" alt=\"U.S. Weekly Average Mortgage Rates (2020-2023) - Freddie Mac\" height=\"630\" width=\"1200\" srcset=\"https:\/\/bpimg.twic.pics\/https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2023\/06\/chart-1.jpg?twic=v1\/cover=1200:630\/resize=1200\/max=1000 1200w, https:\/\/bpimg.twic.pics\/https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2023\/06\/chart-1.jpg?twic=v1\/cover=1200:630\/resize=300\/max=1000 300w, https:\/\/bpimg.twic.pics\/https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2023\/06\/chart-1.jpg?twic=v1\/cover=1200:630\/resize=1024\/max=1000 1024w, https:\/\/bpimg.twic.pics\/https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2023\/06\/chart-1.jpg?twic=v1\/cover=1200:630\/resize=768\/max=1000 768w, \" sizes=\"auto, (max-width: 1200px) 100vw, 1200px\"\/><\/source><\/source><\/picture><figcaption class=\"wp-element-caption\"><em>U.S. Weekly Average Mortgage Rates (2020-2023) \u2013 <a href=\"https:\/\/www.freddiemac.com\/pmms\" target=\"_blank\" rel=\"noreferrer noopener\">Freddie Mac<\/a><\/em><\/figcaption><\/figure>\n<p><span data-preserver-spaces=\"true\">The rising rates have put what many in the industry call \u201cgolden handcuffs\u201d on today\u2019s homeowners, discouraging them from listing their homes and buying new ones. (That would require trading an ultra-low interest rate for today\u2019s much higher one). According to Redfin, about 85% of mortgage homeowners currently have a rate of 5% or lower.\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">\u201cSellers don\u2019t want to move from their apartment or their home because they don\u2019t want to take on higher interest rates, and buyers are too afraid because they are getting less house. In fact, they\u2019re getting half the house they would have two years ago,\u201d Corcoran said. \u201cSo you\u2019ve got a standoff going on.\u201d<\/span><\/p>\n<h2><span data-preserver-spaces=\"true\">Higher Home Prices Could Be Down the Pike<\/span><\/h2>\n<p><span data-preserver-spaces=\"true\">Corcoran\u2019s right: Buyers have definitely pulled back since rates jumped. Applications to purchase a home are now 27% below last year\u2019s levels, according to the Mortgage Bankers Association, and home prices have stopped their steep upward climb as a result. The median sale price clocks in at $407,415, per Redfin\u2019s latest numbers, up from $382,000 in January but down 4% from a year ago.<\/span><\/p>\n<figure class=\"wp-block-image size-full\"><picture decoding=\"async\" loading=\"lazy\" class=\"wp-image-153990 sp-no-webp\" title=\"Barbara Corcoran, Unlike Elon Musk, Says Home Prices Will \u201cGo Through The Roof\u201d 3\"><source srcset=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2023\/06\/Screenshot-2023-06-14-at-1.33.23-PM.webp 938w,https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2023\/06\/Screenshot-2023-06-14-at-1.33.23-PM-300x228.webp 300w,https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2023\/06\/Screenshot-2023-06-14-at-1.33.23-PM-768x585.webp 768w\" sizes=\"(max-width: 938px) 100vw, 938px\" type=\"image\/webp\"><source srcset=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2023\/06\/Screenshot-2023-06-14-at-1.33.23-PM.jpg 938w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2023\/06\/Screenshot-2023-06-14-at-1.33.23-PM-300x228.jpg 300w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2023\/06\/Screenshot-2023-06-14-at-1.33.23-PM-768x585.jpg 768w\" sizes=\"(max-width: 938px) 100vw, 938px\" type=\"image\/jpeg\"><img src=\"https:\/\/bpimg.twic.pics\/https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2023\/06\/Screenshot-2023-06-14-at-1.33.23-PM.jpg?twic=v1\/cover=938:714\/max=1000\" decoding=\"async\" loading=\"lazy\" class=\"wp-image-153990 sp-no-webp\" title=\"Barbara Corcoran, Unlike Elon Musk, Says Home Prices Will \u201cGo Through The Roof\u201d 3\" alt=\"Screenshot 2023 06 14 at 1.33.23 PM\" height=\"714\" width=\"938\" srcset=\"https:\/\/bpimg.twic.pics\/https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2023\/06\/Screenshot-2023-06-14-at-1.33.23-PM.jpg?twic=v1\/cover=938:714\/resize=938\/max=1000 938w, https:\/\/bpimg.twic.pics\/https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2023\/06\/Screenshot-2023-06-14-at-1.33.23-PM.jpg?twic=v1\/cover=938:714\/resize=300\/max=1000 300w, https:\/\/bpimg.twic.pics\/https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2023\/06\/Screenshot-2023-06-14-at-1.33.23-PM.jpg?twic=v1\/cover=938:714\/resize=768\/max=1000 768w, \" sizes=\"auto, (max-width: 938px) 100vw, 938px\"\/><\/source><\/source><\/picture><figcaption class=\"wp-element-caption\"><em>U.S. National Median Sales Price (2020-2023) \u2013 <a href=\"http:\/\/redfin.com\" target=\"_blank\" rel=\"noreferrer noopener\">Redfin<\/a><\/em><\/figcaption><\/figure>\n<p><span data-preserver-spaces=\"true\">Things will change once rates turn a corner, though, Corcoran told Claman. \u201cThe minute those interest rates come down, all hell\u2019s going to break loose. Prices are going to go through the roof,\u201d she said.\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Many industry players expect rates will indeed fall later this year. MBA predicts rates will drop to 5.6% by the end of 2023 and 4.8% by the close of 2024. Fannie Mae\u2019s latest forecast calls for 6% and 5.4% rates, respectively.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Those are just forecasts, but if they ring true, it could spur a jump in demand, which the housing market\u2019s ill-prepared to meet. Housing inventory is currently near all-time lows, and according to Realtor.com, the market\u2019s already 6.5 million short of demand. Lower interest rates would only add fuel to the fire.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">As Corcoran put it, \u201cIt\u2019s going to be a signal for everybody to come back out and buy like crazy. We could have COVID all over again.\u201d<\/span><\/p>\n<div id=\"hero-block_62df1a82bfc88\" class=\"first:mt-0 hero-block py-4    has-background has-slate-200-background-color has-text-color has-theme-gold-color\">\n<div class=\"gap-10 lg:gap-20 flex flex-wrap lg:flex-nowrap max-w-screen-xl mx-auto px-4 relative lg:items-center \">\n<div class=\"relative z-30 lg:w-1\/2 \">\n<main class=\"py-4\"><\/p>\n<p class=\"has-slate-800-color has-text-color has-large-font-size\" style=\"font-style:normal;font-weight:800\">Find an Agent in Minutes<\/p>\n<p class=\"my-3 md:my-5 lg:my-8 has-slate-900-color has-text-color\" style=\"font-size:18px\">Match with an investor-friendly agent who can help you find, analyze, and close your next deal.<\/p>\n<p><\/main>\n<\/div>\n<div class=\"lg:w-1\/2 first:mt-0 relative h-full lg:flex lg:items-center\">\n<picture decoding=\"async\" class=\"object-cover w-full relative z-20 my-0  rounded-md hidden lg:block sp-no-webp\" title=\"Barbara Corcoran, Unlike Elon Musk, Says Home Prices Will \u201cGo Through The Roof\u201d 4\"><source srcset=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2022\/08\/Agent-Finder-Block-2.webp \" type=\"image\/webp\"><source srcset=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2022\/08\/Agent-Finder-Block-2.png\" type=\"image\/png\"><img src=\"https:\/\/bpimg.twic.pics\/https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2022\/08\/Agent-Finder-Block-2.png\" decoding=\"async\" class=\"object-cover w-full relative z-20 my-0  rounded-md hidden lg:block sp-no-webp\" title=\"Barbara Corcoran, Unlike Elon Musk, Says Home Prices Will \u201cGo Through The Roof\u201d 4\" alt=\"find an investment-friendly real estate agent\" srcset=\"https:\/\/bpimg.twic.pics\/https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2022\/08\/Agent-Finder-Block-2.png?twic=v1\/resize=\/max=1000 , \"\/><\/source><\/source><\/picture>\n<\/div>\n<\/div>\n<\/div>\n<p class=\"italic\"><b>Note By BiggerPockets:<\/b> These are opinions written by the author and do not necessarily represent the opinions of BiggerPockets.<\/p>\n<\/div>\n<p><br \/>\n<br \/><a href=\"https:\/\/www.biggerpockets.com\/blog\/corcoran-says-prices-will-go-through-the-roof\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>In this article Another famous name is weighing in on the housing market. A few weeks ago, it was\u00a0Elon Musk\u00a0claiming that home values would plummet as commercial real estate faced headwinds. Now, it\u2019s Barbara Corcoran\u2014albeit a more experienced source when it comes to real estate\u2014touting the opposite. The statements came in a recent interview Corcoran [&hellip;]<\/p>\n","protected":false},"author":5,"featured_media":7992,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"fifu_image_url":"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2023\/06\/arrow-pointing-up-1024x517.jpg","fifu_image_alt":"","footnotes":""},"categories":[9],"tags":[],"class_list":["post-7991","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog"],"_links":{"self":[{"href":"https:\/\/imsfund.com\/index.php\/wp-json\/wp\/v2\/posts\/7991","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/imsfund.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/imsfund.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/imsfund.com\/index.php\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/imsfund.com\/index.php\/wp-json\/wp\/v2\/comments?post=7991"}],"version-history":[{"count":1,"href":"https:\/\/imsfund.com\/index.php\/wp-json\/wp\/v2\/posts\/7991\/revisions"}],"predecessor-version":[{"id":7993,"href":"https:\/\/imsfund.com\/index.php\/wp-json\/wp\/v2\/posts\/7991\/revisions\/7993"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/imsfund.com\/index.php\/wp-json\/wp\/v2\/media\/7992"}],"wp:attachment":[{"href":"https:\/\/imsfund.com\/index.php\/wp-json\/wp\/v2\/media?parent=7991"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/imsfund.com\/index.php\/wp-json\/wp\/v2\/categories?post=7991"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/imsfund.com\/index.php\/wp-json\/wp\/v2\/tags?post=7991"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}