To hear many pundits tell it, this is a dire time for the housing market. Like the great doom-sayers of old, they like to spin tales of gloom — only instead of the threat of, say, a plague of locusts or toads, they look into their tea leaves and see visions of a housing bubble about to burst or homes gathering dust on the market.
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Well, Barbara Corcoran isn’t in the business of trafficking in fear. She calls it like she sees it, and right now, she’s seeing a boost in home sales. In an interview with Fox News host Neil Cavuto, Corcoran shared that she’s not at all surprised to see that home sales up by about 3.4%.
Her lack of surprise is — well, it’s a little bit surprising. However, once you explore why Corcoran thinks home sales aren’t as doomed as many other experts predict, it all makes sense.
Buyers Are Tired of Waiting Around
That statistic may seem like a bit of a shock, partly due to how inconsistent mortgage rates have been. But Corcoran believes the general attitude among buyers is one of eagerness — eager to get off the sidelines and not lose out on the chance to have the key to their dream home in-hand.
Ironically, the fact that rates have been inconsistent over the past several years has contributed to buyers’ willingness to stop playing the waiting game. While Corcoran predicted that if mortgage rates got down to 5%, the market would “go ballistic” with excited buyers, she said a lot of them simply don’t expect that to happen anytime soon.
“Rates have been bouncing around for a while now … so people are confused, they don’t have big expectations, they’re no longer waiting for a tremendous rate drop. But if that happens, God, it would be incredible for the market,” she said.
There Are More Homes on the Market
If there’s one thing that gets buyers revved up to start their home buying journey, it’s having plenty of options. And right now, sellers are getting less shy about putting those “for sale” signs in their front yards. In her interview with Cavuto, Corcoran acknowledged that the presence of more homes on the market has contributed to the increase in homebuying.
Earlier in 2024, there was a slowdown in the number of houses on the market, according to an explainer from John L. Scott Real Estate, which supports Corcoran’s belief that increased home sales aren’t surprising. The volume of buyers has ticked up in the fall after a lackluster spring and summer — and no, it’s not because of a desire for cozy kitchens to sip all things pumpkin spice. Homeowners were slow to list their properties due to fears about market volatility, high mortgage rates and personal circumstances.
However, by fall, those homeowners sensed they were losing their last chance to sell their homes by the end of the year, leading to an influx of available properties. With it came greater excitement among buyers hoping to find their dream homes before the end of the year.
Buyers Might Find it Easier To Negotiate With Sellers
With many sellers eager to avoid carrying added costs into the new year — or simply exhausted and frustrated at the prospect of their homes languishing on the market (especially if they listed earlier in the year) — they might be more inclined to negotiate with prospective buyers.
Everything from price to closing costs, and even home repairs, could be up for discussion, giving buyers a distinct advantage in the deal. These favorable conditions can also help turn prospective buyers into new homeowners.
The Rent is Too Darn High
Another reason buyers are eager to become homeowners is that being a renter is simply too expensive these days. As rental prices increase around the country, more people are figuring it’s better to invest in a property of their own. They might not be wrong, at least based on a headline from the U.S. Census Bureau: Cost of Rent and Utilities Rose Faster Than Home Values in 2023.
The U.S. Census also shared findings that Americans saw the largest annual real increase in rental costs since at least 2011.
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The Bottom Line: A Changing Market Creates Opportunity
For Corcoran, the rising home sales figures are just one more sign that the market is evolving — and buyers are finding ways to navigate the ups and downs. With more homes available, eager buyers ready to act, and the potential for deals with motivated sellers, the housing market may not be as grim as some predict. As more buyers take the plunge, especially first-time homebuyers, 2025 could bring even more excitement to the market.
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This article originally appeared on GOBankingRates.com: Barbara Corcoran: ‘Not Surprised’ Home Sales Are Up 3.4% — Here’s Why
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