If you’re waiting for interest rates and/or home prices to drop before dipping your toe into the real estate market, you could be making a costly mistake. Barbara Corcoran does believe that interest rates will go down, but she predicts that this will cause home prices to soar.
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“It’s a tough market,” she said while appearing on Forbes’ “Women & Wealth” series. “The only advice I have is get into it as fast as you can.
“A lot of people are sitting on the sidelines waiting for interest rates to come down to the tune of 4%, 3%, maybe even 2%,” Corcoran continued. “Well, those days are over — it’s not going to happen. But when they do come down to 4%, or even 5%, everybody on the sidelines is going to charge the market.”
As demand increases, prices will increase as well.
“If you think you have a problem now finding a house, you’re going to have a bigger problem and you’re going to pay a lot more for the house,” Corcoran said. “I wouldn’t be the least bit surprised, if interest rates come down, that house prices jump up by as much as 10% in a year. So there’s no sense in waiting. There’s nothing better about waiting.“
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The Best Time To Buy Is Always Now
While we are in a “tough” real estate market, Corcoran doesn’t believe in trying to time the market.
“I always believe the best time to get into the real estate market is as quick as you can, the reason being that you need a chip to trade up on,” she told Forbes. “If you’re not in the market for a few years, the market runs away from you. You need to get in fast so that you could trade your studio in for a two-bedroom, trade that in for a three-bedroom or whatever.”
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Corcoran said she learned this lesson the hard way.
“When I was in my late 20s, I got my hands on a studio that I could barely afford — I chickened out,” she said. “I just didn’t have the courage to go forward. But it took me probably five years to catch up to the market again. It ran away from me before I could find another studio.”
That’s why Corcoran now recommends buying real estate as soon as you can afford to.
“It’s crazy to wait on buying something,” she said. “You have to get in as fast as you can.”
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This article originally appeared on GOBankingRates.com: Barbara Corcoran Says Home Prices Will Jump 10% in a Year: ‘Get Into the Market Fast’
