Barbara Corcoran argues good time to buy and invest in Real Estate...do you agree?

[AJ Wong]

I was watching a Barbara Corcoran podcast and the host was asking her; why it's a good time to buy a home when interest rates are high? 

Her response was something along the lines of wait until mortgage rates are in the 5%'s and home valuations could increase by as much as 10%..

When/if that happens, her argument is that sellers will be willing to relinquish their 2-3-4% rates causing inventory to increase and buyers will flood the market. 

I'm in this camp. Comparing the volume of qualified and 'active' buyers this time of year with last, if there is any impetus to act, they will likely be competing with one another for a small uptick in available inventory. 

Prime properties have still seen strong buyer activity (assumedly everywhere) regardless of recent interest rates, but average on market times are longer and buyer(s) typically have a captive seller audience to present their offer. 

If buyer activity accelerates in the Spring, there will be less room for buyer(s) to negotiate, albeit at lower rates of interest. Do you date the rate or marry the property? 

Sometimes you have to create the deal, a lower price and strong seller concession can move the needle on a prospective investment and timing is always essential. I've posted recently about the extremely low inventory or Coastal STR's and Multi Family properties in Oregon.

In reviewing my Coastal Sales activity for 2023 about 70% of transaction closed between June-October of last year. Several clients were in contract (or actively shopping) just prior to peak season and avoided heavy competition on the limited inventory. 

What do you expect from 2024? Is your area seasonal, what do you anticipate if the FED cuts interest rates in the April/May or June meeting? 

[Russell Brazil]

After 21 years of real estate I can say, there is no good time or bad time to invest in real estate. When the market's hot...you'll pay more for a property. When the market is cold, you have to overcome the fear to invest. And when it comes to buy and hold, time cures all mistakes.