What can we expect from real estate in 2024? CNBC’s “Last Call,” hosted by Brian Sullivan, recently welcomed “Shark Tank” star and real estate legend Barbara Corcoran to the show. He appeared on the show and talked about real estate trends.
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Here are some of Corcoran’s top commentary on real estate in 2024, including whether mortgage rates have peaked and whether you should buy a home.
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How do we make sense of a house that has doubled in price?
In the interview, Sullivan mentioned how home prices have doubled in many areas of the United States.
Mr Corcoran said it “makes no sense” to people trying to understand how the values of so many homes could have risen so quickly. Those who bought these homes were lucky to experience both a significant increase in home values and his 3% interest rate.
And even though the ship has set sail with buyers securing homes at 3% or 4% interest rates in 2024, Corcoran said current rates aren’t as big a deal as they seem.
“If you look at the average interest rate in the United States over the past 50 years, it’s been almost 8%. And yet, relatively speaking, people view current interest rates as a lot of money,” Corcoran said. Ta. “They really aren’t. [Interest rates] Simply average. ”
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Have mortgage rates peaked?
Mr. Sullivan said the 10-year Treasury yield could soon fall below 4%, which prompted Mr. Corcoran to ask whether he thought mortgage rates had peaked.
“They’ve reached their peak. Most people believe that,” Corcoran said. “But everyone expects mortgage prices to fall by as much as 6%, and maybe even lower.”
Corcoran said he doesn’t know exactly when interest rates will be lowered, but he understands what the real estate landscape will look like when they happen.
“Everyone will hear that call and start looking for a home again,” she said.
Should you rent or buy in 2024?
When asked whether to rent or buy in 2024, Corcoran recommended buying rather than renting or continuing to rent.
“It’s much better to buy something now if you can,” Corcoran said, adding that it gives you a winning advantage over those who wait for it to come out of the market.
While it may be tempting to continue renting because it’s a little cheaper, Corcoran doesn’t recommend renting over buying.
“If you have a way to raise the cash and get into the market… buy a house.”
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This article originally appeared on GOBankingRates.com: Barbara Corcoran: Why Interest Rates Are “Simply Average” in 2024 Real Estate
