Home prices have been rising in many parts of the country, with costs driven up by low inventory and high demand due to competitive mortgage rates. As a result of high prices, some would-be home buyers may be putting off the purchase of a property in hopes that the seller’s market won’t be sustainable and they’ll end up getting a better deal if they wait.
If you’re one of the many people delaying buying a home because you’re hoping for a price decline, Shark Tank star and finance expert Barbara Corcoran has some words of advice that you may need to hear.
Corcoran doesn’t think putting off a home purchase is wise
Although Corcoran has acknowledged that some would-be homeowners may have no choice but to delay their purchase due to a lack of available housing inventory, she also made 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 is wise to wait,” Corcoran said in a CNN interview. She made this comment despite the fact that she “spent almost 50 years in the real estate business” and has “never seen prices nationally go up at this kind of a rate.”
There are a few big reasons why she indicated that she thinks it’s a good idea to buy a home now rather than delaying. Her justifications for urging a home purchase even in a competitive market include:
- The likelihood that prices will stay high for a while: She believes home buyers shouldn’t delay in the hopes of prices falling because that’s not likely to happen for several years. In fact, she thinks prices are more likely to appreciate, which means delaying could mean paying substantially more for a property later on.
- Her belief that prices aren’t in a bubble: If home prices were in a bubble, then it’s likely they’d come crashing down quickly and provide an opportunity for buyers 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 bonkers based on individual demand of the people who want to live there,” she said.
- Mortgage rates are rising: “You might wait till next year, but you’re going …….