Barbara Corcoran reveals what will make real estate 'go ballistic' in 2025
Published On Nov 22, 2024, 10:01 AM
Barbara Corcoran believes the U.S. real estate market could see significant growth if mortgage rates drop to 5%. Currently, rates are around 6.84% and have been fluctuating. Corcoran pointed out a concerning trend: the number of first-time home buyers is at a historic low of 24%, while cash buyers have reached a record high of 27%. Despite high rates, existing home sales saw an increase of 3.4% in October. Corcoran emphasizes the need for more first-time buyers to stimulate the market.
Stock Forecasts
XHB
Positive
If mortgage rates indeed fall to 5%, it could trigger a surge in demand for homes as more buyers would be encouraged to enter the market. This could positively affect real estate stocks and ETFs as activity picks up.
VNQ
Negative
Should the rates not decrease and instead continue their current trend or increase, it could lead to a stagnation in the housing market, adversely affecting related stocks and ETFs.
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