Should you listen to Corcoran’s advice and jump up the property ladder?
the main points
- Home prices are currently high in many parts of the country.
- Some potential home buyers are waiting to buy in the hope of lower prices.
- Financial expert Barbara Corcoran thinks this is a bad idea.
Home prices have risen in many parts of the country, with costs rising due to lower inventory and higher demand due to competitive mortgage rates. As a result of higher prices, some potential home buyers may put off buying a property in the hope that the seller’s market will not be sustainable and will end up getting a better deal if they wait.
If you are among the many people who delay buying a home because you are hoping for lower prices, shark tank Superstar and financial expert Barbara Corcoran has some advice you might want to hear.
Corcoran doesn’t think it’s wise to put off buying a home
While Corcoran acknowledges that some potential homeowners may have no choice but to delay their purchase due to a lack of available housing stock, she also made it clear that if you have the option to buy, you should do so despite the high prices in the current real estate market.
“I don’t think it’s wise to wait,” Corcoran said in an interview with CNN. She made the comment despite the fact that she had “spent nearly 50 years in real estate” and “never experienced a price rise nationally at that kind of price”.
There are some big reasons for her to point out that she thinks it’s a good idea to buy a home now rather than delay. Their justifications for urging a home purchase even in a competitive market include:
- Prices may stay high for some time: She believes home buyers should not be put off by the hopes of falling prices because that is not likely to happen for several years. In fact, you think prices are likely to go up, which means that a delay could mean paying a much larger amount for a property at a later time.
- Her belief that prices are not in a bubble: If house prices are in a bubble, they will likely collapse quickly and provide an opportunity for buyers to get a good deal. But she does not think that is the case. “We don’t really have a bubble, what we have is an unusual market that just ended on the individual demand of people who want to live there,” she said.
- Mortgage rates are on the rise:You may wait until next year, but you will definitely pay more, in my opinion. And you will pay more [to borrow] Owner. I warned that your expenses will really go up.”
- Rents are also rising: Corcoran noted that for those who decide to wait, they will likely face higher rental costs in the meantime, so it’s not as if they’ll actually end up saving money. “There is no safe haven to go to and feel like you can wait for a while. The landlord is raising rents, and all the perks on the rental front are gone. All you have to do is wish you had bought yesterday.”
All of these reasons are good, and they may just convince you that buying a home now is a good financial move. This advice is sound. If you’re in a financial position to buy, delaying could end up being a huge mistake, so consider making 2022 the year you’re buying.
Historic opportunity to save thousands from your mortgage
Chances are that interest rates will not remain at multi-decade lows for much longer. That’s why taking action today is so important, whether you want to refinance and lower your mortgage payments or you’re ready to start the process of buying a new home.
Ascent’s mortgage expert recommends this company find a low rate – and in fact used it himself to return (twice!). Click here to learn more and see your price. Although this does not affect our opinions of the products, we do receive compensation from partners whose offerings appear here. We are always by your side. See The Ascent advertiser’s full disclosure here.