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Should you listen to Corcoran’s advice and jump on the property ladder?

Key points

  • House prices are currently high in many parts of the country.
  • Some potential buyers wait to buy in the hope that the prices will drop.
  • Finance guru Barbara Corcoran thinks it’s a bad idea.

Home prices have increased in many parts of the country, with costs driven by low inventories and strong demand due to competitive mortgage rates. Due to the high prices, some potential buyers may postpone buying a property in the hopes that the sellers’ market will not be viable and that they will end up getting a better deal if they wait.

If you’re one of the many people who put off buying a home because you expect prices to drop, Shark aquarium Star and finance expert Barbara Corcoran has some tips you might need to hear.

Corcoran doesn’t think it’s wise to postpone buying a home

While Corcoran acknowledged that some future homeowners may have no choice but to delay their purchase due to a lack of available home inventory, she also clarified 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 told CNN interview. She made the comment despite having “spent almost 50 years in the real estate business” and “never seen prices rise at such a rate nationwide.”

There are a few big reasons why she has indicated that she thinks it’s a good idea to buy a home now rather than delay. Its justifications for inducing home buying even in a competitive market include:

  • The likelihood that prices will stay high for some time: She thinks homebuyers shouldn’t be long in hoping for lower prices, as that shouldn’t happen for several years. In fact, she thinks prices are more likely to rise, which means delaying could mean paying a lot more for a property down the road.
  • His belief that prices are not in a bubble: If house prices were in a bubble, chances are they would collapse quickly and offer buyers the chance to get a good deal. But she doesn’t think that’s the case. “We don’t really have a bubble, what we have is an unusual market that’s just gone crazy based on the individual demand of people who want to live there,” she said.
  • Mortgage rates are rising: “You could wait until next year, but you’re definitely going to pay more, in my opinion. And you will pay more [to borrow] your money. Your expenses will really increase, ”she warned.
  • Rents are also increasing: Corcoran pointed out that for those who decide to wait, it is likely that they will face higher rental costs in the meantime, so it’s not as if they will end up saving money. . “There’s no safe haven where you can go and feel like you can wait a bit. Your landlord is raising the rents, the concessions are all gone on the rental front. All you’re going to do is is wish I had bought yesterday. “

All of these are good reasons, and they may just convince you that buying a home now is a good financial decision. This advice is sound. If you are able to buy, delaying could be a big mistake, so consider making 2022 the year of your purchase.

A historic opportunity to potentially save thousands on your mortgage

There is a good chance that interest rates will not stay at multi-decade lows any longer. That’s why it’s crucial to act today, whether you want to refinance and lower your mortgage payments or are ready to pull the trigger to buy a new home.

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