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.

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Stock Forecasts

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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.

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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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