“I don’t think it is wise to wait,” Corcoran told CNN anchor and chief business correspondent Christine Romans on Thursday. “Of course, if you can’t find a house, you have to wait. But to make it part of your plan to wait until house prices come down, I don’t envision that happening over the next few years, at least not for the next year.”
But waiting could cost you more, Corcoran said.
Inevitably, the hot housing market has drawn comparisons to the 2006 housing bubble. But Corcoran does not think this is a bubble, because the high prices are not artificially supported by shady lending practices the way that sub-prime lending led to foreclosures during the last housing crisis and there aren’t a lot of flippers in the market.
“We don’t really have a bubble, what we have is an usual market that’s just gone bonkers based on individual demand of the people who want to live there,” she said. “I have never seen a housing market like this. I spent almost 50 years in the real estate business. I’ve never seen prices nationally go up at this kind of a rate.”
The reason for the price increases, she said, is a lopsided market, with overwhelming demand and historically low inventory. “You don’t have enough houses to go around.”
“Mortgages are going up,” she said. “You might wait till next year, but you’re going to definitely pay more, in my opinion. And you’ll pay more [to borrow] your money. Your expenses are really going to ratchet up.”
Corcoran also advised against trying to wait out the market in a rental while saving up to buy a home at some more affordable time in the future.
“There’s no safe haven where you can go and feel like you can wait a while,” she said. “Your landlord is raising the rents, the concessions are all gone on the rental front. All you’re going to do is wish that you had bought yesterday.”
Being a buyer in this market
Still, this is a treacherous market for homebuyers, Corcoran said.
She outlined the speed with which buyers need to make offers for homes that go into contract in a matter of days, the inspections that are often waived in order to be competitive and the high — sometimes all-cash — offers required to beat out the competition.
“But if you’re in the homebuying market and you’ve lost three houses, an unusual emotional thing happens to buyers,” she said. “They go crazy! They are jumping…