Additional Coverage:
- ‘Shark Tank’ investor Barbara Corcoran says young people’s dreams of buying a home are being crushed (newsbreak.com)
Housing Market Challenges for Young Buyers
Barbara Corcoran, a real estate investor on “Shark Tank,” expressed concern about the challenges young people face in buying homes. She noted that first-time buyers are getting older, while cash buyers are outbidding them.
Rising Costs and Competition
High prices, rising mortgage rates, and intense competition are making it difficult for young buyers to enter the housing market. Data shows that the median age of first-time buyers has increased, and cash buyers now make up a record high percentage of purchases.
Mortgage Rates and Inflation
Corcoran believes that the current mortgage rates are still high, and inflation could push them even higher. She emphasized that a significant drop in rates would boost home sales. However, she also warns that a rise in rates would slow down the market and the economy.
Overheating Concerns
Corcoran dismissed concerns about a housing bubble, arguing that the low percentage of investment purchases indicates a healthy market. She believes that the current market is not comparable to the last housing bubble, which was characterized by excessive investment.