The Real Estate Miracle?

by Alex Stenback on March 18, 2011

Barbara Corcoran, near legendary New York Real Estate persona (who famously started her real estate business on a $1000 loan,) weighs in on a topic that we’ve covered a lot around here – That now may just be a very, very good time to buy a home.

Video above (via Business Insider,) but here’s the money quote:

“Because we have a regular real estate miracle happening right now,” says Corcoran. “We not only have record low prices, but we also have cheap money.”

Miracle may be a tad hyperbolic, and Barbara has made a bad call or two, but we are in agreement with the general sentiment for sure.

Low rates and low prices do not coincide very often, so for those ready to become a first time buyer, move up, or invest, ignoring this fact may cost you.

{ 3 comments… read them below or add one }

Jennifer March 18, 2011 at 9:49 am

Here’s a case-in-point for you. The fixer-upper house we bought in 2000 for $95K, fixed up, and sold in 2006 for $180K is now back on the market for $69K! CRAZY.

I agree with you and hope there are some first-time buyers out there who will do right by my old house. :)

Brandon March 18, 2011 at 12:31 pm

I wonder, though, what will happen to values when money is no longer cheap. Perhaps my partial incredulity is conditioned by the run up in the market last decade and its causes. However, what’s more important to home values– employment or cost of capital (or some other factor)? How much can interest rates really rise without significanlty dampening a housing recovery driven by employment recovering to “normal” levels?

Gworthen March 22, 2011 at 2:24 pm

I agree with Brandon. People have gotten so used to the 5 percent mortgage rates. Mortgage rates cannot stay this low forever. We will have to wait and see what happens with demand once rates rise.

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