By John McCorry and Tom Keene | Bloomberg
Barbara Corcoran, the real estate agent many Americans might dream of having, says home prices are climbing so fast that ordinary people can’t afford one and that’s unfair.
“Most people are priced out of the market,” said the co-founder of her eponymously named venture partnership in an interview on Bloomberg TV’s Surveillance Wednesday. “It just seems unfair to feel like you have to be a pro investor bidding up the prices.”
Corcoran is best known as a panelist and executive producer of “Shark Tank,” ABC’s reality show where professional investors assess small-business ventures. In 1973, she started the Corcoran Group real-estate brokerage in New York, which became one of the largest residential real estate companies in the area; she sold it in 2001.
“I’ve never seen an increase like” the pandemic-related surge in U.S. home prices, Corcoran said in the interview.
For example, U.S. home prices surged 19.7% in July, once again posting the biggest jump in more than 30 years, according to a Sept. 28 tally of the S&P CoreLogic Case-Shiller index of property values. This followed an 18.7% jump in June, and was the 14th straight month of accelerating price increases.
“The market has been going absolutely bonkers with no end in sight,” Corcoran said. “Everything is being sold in bidding wars. I’m just hoping that the prices cool down a bit because so many people are left out of the market.”
She doesn’t see ballooning home prices causing the same sort of financial chaos kicked off by a mortgage crisis more than a decade ago.
“It is not the same kind of market. Today’s market is fueled by individual buyers who want a better place to live,” Corcoran said. “When we had that dropoff, it was fueled by investors, house flippers, poor mortgages. It was a false market, with a false bottom, and it fell. We’re not going to have that now.”
Source: Orange County Register