by John McCurry and Tom Keene | bloomberg
Barbara Corcoran, the real estate agent many Americans can dream of, says home prices are climbing so fast that ordinary people can’t afford it and that’s unfair.
“Most people are priced out of the market,” said the co-founder of the venture partnership named after him in an interview Wednesday with Bloomberg TV watchdog. “It feels unfair to feel like you have to be a pro investor bidding prices.”
Corcoran is best known as a panelist and executive producer of ABC’s reality show “Shark Tank”, where professional investors assess small-business ventures. In 1973, he started the Corcoran Group real-estate brokerage in New York, which became one of the largest residential real estate companies in the region; He sold it in 2001.
“I’ve never seen a rise in US home prices like a pandemic-related increase,” Corcoran said in the interview.
For example, according to a September 28 tally of the S&P CoreLogic Case-Shiller index of property values, US home prices rose 19.7% in July, once again the biggest jump in more than 30 years. It jumped 18.7% in June, and was the 14th straight month of price rally.
“The market is completely shutting down, with no end in sight,” Corcoran said. “Everything is being sold in the bidding battle. I’m just hoping the prices go down a little bit because so many people are out of the market. “
She doesn’t see the boom in home prices that caused the same kind of financial chaos from a mortgage crisis more than a decade ago.
“It’s not a one-way market. Today’s market is driven by individual buyers who want a better place to live,” Corcoran said. “When we had that dropoff, it was fueled by investors, house flippers, bad mortgages. It was a false market, with a false bottom, and it fell. Now we won’t have it.”