Epic Real Estate Investing - Shark Tank's Barbara Corcoran: Housing market is getting scary... | 1446

Episode Date: March 21, 2025

In this episode, we delve into Barbara Corcoran's recent revelations on the housing market's biggest hurdle: uncertainty and a fundamental supply crisis. Despite 7 million homes short, historical low-interest rates are causing a 'lock-in effect,' making homeowners reluctant to sell. This situation is creating an affordability crisis, with the price of starter homes soaring and first-time homebuyers decreasing to a record low. The episode also highlights the importance of technology and off-market property strategies in real estate investing. A case study of Marcus shows how employing tech solutions like Deal Machine can help manage investing tasks more efficiently, ultimately allowing investors to work smarter in this tumultuous market. Marcus “go to” tech: https://www.dealmachine.com/epic Learn more about your ad choices. Visit megaphone.fm/adchoices

This is Terio Media. Hey, strap in. It's time for the epic real estate investing show. We'll be your guides as we navigate the housing market, the landscape of creative financing strategies, and everything you need to swap that office chair for a beach chair. If you're looking for some one-on-one help, meet us at rei-aise.com. Let's go, let's go, let's go, let's go, let's go, let's go.

Let's go. If you're waiting for home prices to crash before buying, that could be an issue. Barbara Corcoran just revealed on Fox News what she calls the housing market's biggest problem. There's great uncertainty, and uncertainty is bad for business. Uncertainly makes people pause, which is a problem. This uncertainty isn't just about market jitters. We're looking at a fundamental supply crisis, 7 million homes short, to be exact. And it's creating a domino effect throughout the entire housing ecosystem.

Even suppliers are stockpiling lumber, afraid of what's coming next. But here's what's fascinating. But more than two-thirds of America have 4% interest rates. Why would you sell your house? Why would you move if you have 4% rate? That's really the blanket holding. So people are holding on. What's even more interesting is that Corcoran specifically noted that anything with a 5% in

front of it is going to make this market go ballistic. That's a clear threshold to watch for. And she didn't stop there. She predicted that if rates drop by just one percentage point, prices are going to go through the roof. We're talking potential increases of another 8 or 10%. That's huge for anyone timing their entry into this market. Think of like a pressure cooker. We've got millions of buyers waiting on the sidelines. They're watching the rates while homeowners are holding onto their properties with their low mortgage rates. So with all that pent-up demand is just sitting there

waiting for this pressure release of lower rates. When that happens, boom, the market explodes with activity and prices surge. But in the meantime, we're dealing with what's called the interest rate lock-in effect. Now, it's not an official term, but here's what it means. When two-thirds of homeowners are sitting on historically low rates, they're essentially locked in place, meaning their mortgage payment would essentially double if they were to sell and buy a comparable home. What we're actually facing isn't just a housing crisis. It's an affordability crisis. With starter homes now costing over $1 million in 237 American cities, first-time homebuyers, they've dropped to their lowest levels in history, just 24% of purchases. And the demographics tell the story. The median age of first-time

home buyers has jumped to 38, up from 35 just a few years ago. People are having to wait longer and longer to afford their first home. And get this, while the typical starter home nationwide is currently worth about $196,000, that number keeps climbing beyond the reach for many would-be buyers. The data confirms this. Home prices are still up 4.2% from last year, but that's actually the slowest monthly increase since December of 21. The market isn't crashing. It's just changing. And this is exactly why waiting for prices to crash is such a risky move. The fundamentals simply don't support a crash, just a transformation in how the market functions. Now, it's not all doom and gloom. There are some bright spots worth mentioning. More homes are coming on the market. Price cuts are on the rise,

and buyers now have a few more days to weigh their options before making a decision. The market is showing signs of balance. Meanwhile, cash buyers have hit an all-time high. 27% of purchases. That's a massive shift and who's actually buying property right now. While traditional housing crises involve collapsing prices and market dysfunction, today's challenge is different. We're seeing a growing disconnect between home costs and buyer purchasing power. For investors, this means three things. First, you need to look where others aren't looking. Off-market properties have become gold mines when traditional listings are scarce. Second, technology isn't just helpful anymore. It's essential. The investors winning right now are using AI and

automation to find deals others miss. And third, speed matters more than ever. With cash buyers ready to pounce, you can't afford to spend days analyzing each potential deal. In this market, the right tools can be the difference between finding that hidden gem or missing out completely. It's about working smarter, not harder. And this is exactly what caught Marcus, a private client of mind's attention. While others saw obstacles, he recognized something crucial. When traditional, Additional buyers step back and homeowners stay put, off-market properties become gold mines for investors who know where to look. But here's where it gets interesting. Marcus realized that with cash buyers at an all-time high, 27% of purchases, the old way of finding deals wasn't going to cut it

anymore. Like many, he's balancing a full-time job with his real estate ambitions. At first, everything seemed manageable. He'd spend his evening searching for properties, making calls and building lists. That's when things started unravel, though. Marcus found himself spending less and less time with his family, missing his daughter's volleyball games, which he loves so much, working late into the night trying to find off-market deals, following up with potential sellers, all while good opportunities just kept slipping away. And I remember him telling me, I'm missing my daughter growing up just to stare at spreadsheets and make cold call. Look, I've been there. We've all been there. That feeling of being trapped between our dreams and our responsibilities.

But here's the thing. While the market challenges Barbara talked about aren't going away, the way we handle them can change. For Marcus, everything shifted when he started using technology to do the heavy lifting. Instead of spending hours manually searching for properties, he could literally turn his drive time into dollars. Now, there's a ton of really good tech out there that can make your workload much easier. And I use a few of them, but my go-to tool is the brand-new deal machine app. And here's why I mention it.

Marcus now spends evenings with the family while the system automatically builds his list and follows up with sellers. The AI assistant even helps with those awkward cold calls, you know, the ones that we all love so much. In this uncertain market that Barbara described, you've got to work smarter, not harder, got to work smarter. Whether you use deal machine or not, that's entirely up to you. Like I said, there's a bunch of really helpful tech out there right now. But if you use the link below, you do get seven days of free access and $30 of follow-up credit. But honestly, the most important thing is finding a system that gives you your life back while still helping you reach your investment goals. If you'd like some help with that, let me know.

Otherwise, I will see you next time. Take care. And that wraps up the epic show. If you found this episode valuable, who else do you know that might too? There's a really good chance you know someone else who would. And when their name comes to mind, please share it with them. And ask them to click the subscribe button when they get here and I'll take great care of them.

God loves you and so do I. Health, peace, blessings, and success to you. I'm Matt Terrio. Living the dream. Yeah, yeah, we got the cash flow. You didn't know home world. This podcast is a part of the C-suite radio network. For more top business podcasts, visit c-sweetradio.com.