Barbara Corcoran Thinks Home Prices Are Going To Skyrocket – And Our CEO Agrees!

You may have seen a recent article with Shark Tank host Barbara Corcoran with a headline similar to "Home Prices Are Going To Go Boom – AGAIN!" We have, too!

This all stems from her interview with Fox Business, where Corcoran shares, "the minute those interest rates come down, all hell's going to break loose, and the prices are going to go through the roof." She continues to suggest that, during this time, home prices will most likely go up 20% and our market will return to how it was back in 2021.

Sounds crazy, right? Which is why we brought this interview to the very person we knew could shine some light on it – real estate trendsetter, two-time best-selling author, and CEO, Chris Masiello.

You can watch the full interview with Chris on our YouTube channel below!

As the CEO of a top New England Brokerage within The Masiello Group, Chris offers weekly interviews to share insights into the market with his team and community. In this week's episode, he explains that Corcoran is echoing the same thing he (and many others in the industry) have been saying for weeks – pointing to previous interviews we've shared as a company.

"It's, again, a different way of saying it, but similar to what we've been talking about," said Chris, "You date the rate, but you marry the house... but when you buy your house, that price for your house is a fixed number, that doesn't change."

"And so, the story is really about the inventory. We still have an inventory shortage in comparison to the population. And in the last 15 years, new home construction has been off [by] almost 50%."

Since the start of 2023, Chris has advocated that the market we're facing today is truly a market unlike what we have seen in the past – the main factor being the lack of housing with appreciating prices.

"We've been saying this here, you know, for months, but the one thing about this [that stands out] is that these are all new dynamics...We've never really seen this before,[this type of inventory] with multiple stack generational demographic groups layered, all orbiting the housing market at the same time."

Incoming Appreciation

Chris Masiello explained that the incoming appreciation spike is simply a natural balance between supply and demand. "What is going to happen is [lower interest rates] will automatically bring more buyers into the market... but they're going to be competing for still the same small number of units that are available."

Comparing now to what is to come, Chris explained, "Depends where you are [today], but 3-5% appreciation rate, that's pretty reasonable... [but soon] you're going to have more people in the market competing for the smaller number of houses and it's going to go right back up to that 20% rate."

When pressed on the timeline for when we can expect interest rates to begin dropping, Chris shared that we'll probably see this shift start around the middle of 2024.

What Does That Mean For Me?

Chris encouraged those currently in, or interested in entering, the market to look at their situation this way, "You're really leaning into the shortage of the inventory. And you're picking your property up now with almost built-in equity down the road." Chris shared this advice, "It's almost like buying a flip...[but] you're not going to flip, you're going to live in it."

"If you can afford to forget about interest rates, forget about w1ait and buy now. What it's really allowing you to do is make contact with the future...you're making contact today with a profit-making event for your family three or four years down the road."

Final Thoughts

Today's market is nothing like we've ever seen. It has become clear that years of trends have created an environment that real estate tycoons, financial advisors, and agents alike are learning from daily.

As buyers/sellers/investors in the market, it's our responsibility (to ourselves and our loved ones) to recognize the moving trends and take advantage of what is to come. In this instance, and after talking with Chris Masiello the idea of an appreciation boom feels obvious rather than speculation. And that if you're able to do so, taking action is the responsible next step.

Of course, for most of us, action in the real estate world isn't as easy as buying a gallon of milk. That is why Chris and many others in the industry, as well as others such as investors, financial advisors, and those in the financial sector, encourage using a real estate agent to help along the way. They're experts at what they do, and their job is to help you navigate the current market.

The biggest takeaway, a pro tip from Chris himself – it costs nothing but your time to meet with an agent. It's crucial that you and your agent are on the same page, and reaching out for their opinion shouldn't feel like a binding contract. The ball is in your court to vet and choose which agent you want to work with. That is one of the reasons why agents at Better Homes and Gardens Real Estate The Masiello Group are given so many tools to help them aid their clients.

If you're interested in starting your real estate journey today, let us know, and we can pair you with one of our agents in your area! Simply fill out this form and we'll be in touch.