The latest bold-face real estate name to tout the housing market’s recovery is Barbara Corcoran, the founder of Corcoran Group and a host on “Shark Tank.” But unlike some of her predecessors, she appeared on CNBC’s “Fast Money” yesterday evening armed with specific data (see video above).
Corcoran said there are bidding wars on one-quarter of all homes on the market, and that though the recovery is still uneven, about three-quarters of all towns in America are experiencing price appreciation.
But the number one thing keeping the country from a more robust housing recovery is low appraisals. Fearful of repeating past mistakes, appraisers are severely undervaluing properties. That’s “jinxing one of three deals in the market,” Corcoran said.
“It’s almost ironic what happened,” Corcoran said of the low appraisals and tight lending standards holding back deals. “The legislation came out too late and the market was already turning the corner, and now it’s in the way.”
Corcoran concluded that the improved housing market could spell doom for landlords, even though that notion has been rejected by other analysts.
“We had a [rental market] bonanza. Landlords are smiling,” she said. “But that’s going to change the minute everybody realizes that they better get it now before they pay more tomorrow.” [CNBC] — Adam Fusfeld