Existing home sales were up 3.4% month-over-month in October, showing their first year-over-year gain in more than three years.
Corcoran Group founder, Shark Tank investor, and real estate expert Barbara Corcoran says the increase in home sales doesn’t surprise her.
“There are more houses on the market so there are 25% more choices for the buyer coming out into the market and looking,” Corcoran told Fox Business on Thursday. “On top of that, the buyers themselves have gotten accustomed to the rates being what they are and they just got tired of waiting.”
Related: You Have One Month Left to Buy a House, According to Barbara Corcoran. Here’s Why.
As of Friday, mortgage rates are up to 6.96% for 30-year fixed mortgages, a 0.05% increase from last week. Corcoran said that if the rate drops down somewhere in the 5% to 5.99% range, it would have a noticeable effect on the market.
“Anything with a 5% in front of it is going to make this market go ballistic,” Corcoran said. “But right now you’re already seeing the signs of it [lower rates] in the last month.”
Corcoran predicted last month in an interview with Entrepreneur that mortgage rates would go down to the 5% range within the next year.
She said that most potential sellers could be sitting on rates much lower than that, under 3%, so incentivizing them to sell could be difficult.
Related: Barbara Corcoran Says This Is the One Question to Ask Before Selling Your Home
According to a report released by the National Association of Realtors (NAR) earlier this month, first-time buyers were older than ever, with the median age settling at 38 years old this year. The average age of home buyers overall was an all-time high of 56 years old, up from 49 years old last year.
Corcoran told Fox Business that the higher ages are because of higher interest rates, which lock out younger buyers with less home equity.
“I say my prayers at night and pray for lower interest rates,” she said.
The NAR report showed that first-time home buyers made up an all-time low of about 25% of all total home buyers, down from 32% in 2023.
Repeat home buyers dominated sales: They could afford to put down larger down payments, with the median down payment percentage of the group resting at 23%. Nearly a third, 31%, paid for a new home in all cash.
First-time home buyers have had to adjust to these conditions. This year they put down a typical down payment of 9%, the highest percentage since 1997.
Related: Barbara Corcoran Needed to Make Job Cuts. Here’s Why She Fired Her Mom First.