Barbara Corcoran Says Now Is 'a Great Time to Get a Good Deal' on Real Estate—Here's Why

Barbara Corcoran, the iconic real estate mogul and Shark Tank investor, has long been a voice of wisdom in the housing market. In 2025, she’s advising buyers to act now—despite elevated mortgage rates—to secure deals in a market marked by uncertainty and imbalance. Here’s why the timing might be ripe for strategic investors.

The Inventory Dilemma: Why Sellers Are Holding Back

Corcoran highlights a critical flaw in the housing market: 7 million homes are missing from inventory, leaving buyers scrambling. The root cause? Sellers are clinging to their 4% mortgages—locked in during the post-pandemic rate plunge—and refusing to list homes at today’s 6.9% mortgage rates. This creates a gridlock: buyers want to move up, but sellers won’t budge.

The data shows rates nearly doubled between 2021 and 2022, pricing many out of the market. Now, with rates stabilizing around 6.8%, sellers remain hesitant. “Why would you sell your house?” Corcoran asks. “You’ve got a 4% rate—it’s a blanket holding people back.”

Strategic Buying Opportunities

The shortage has created negotiation leverage for buyers. Corcoran advises targeting homes with prolonged days on the market (DOM)—properties listed for six months or more. Over 54.5% of listings in late 2024 remained unsold for over 60 days, signaling seller desperation. Buyers can also sidestep peak seasons: avoid spring and summer bidding wars by shopping in winter, when demand slows.

Additionally, Corcoran recommends seeking homes with separate entrances—ideal for converting into rental units. This strategy, she argues, can offset mortgage costs while capitalizing on the rental market’s 237 U.S. cities where starter homes exceed $1 million.

The Midwest Advantage: Climate Resilience and Affordability

While Texas and Florida grapple with over-supplied markets and climate risks, the Midwest is thriving. Cities like Toledo, Ohio (median price: $235,000) and Rockford, Illinois offer 63.7% price growth since 2020—with 1.5% of homes at severe climate risk—making them safer bets.

The data reveals Toledo’s steady rise versus Miami’s volatile swings, driven by hurricane risks and overbuilding. Corcoran calls the Midwest “the sweet spot” for buyers seeking affordability and stability.

Risks and Considerations

Despite the opportunities, economic uncertainty looms large. Tariffs on construction materials (e.g., lumber) threaten to reignite inflation, while a potential recession could further dampen demand. Corcoran warns that a 1% drop in mortgage rates could trigger an 8–10% price surge, as buyers rush to capitalize on lower borrowing costs.

The national rate of 4.2% masks regional divides: Toledo’s 6.6% unemployment highlights risks in manufacturing hubs, while tech-driven markets like Salt Lake City face overvaluation.

Conclusion: Act Now, but Stay Strategic

Corcoran’s advice hinges on acting while the market remains gridlocked. Key takeaways:
1. Target inventory gaps: Focus on regions with climate resilience and low DOM listings.
2. Avoid peak seasons: Negotiate harder in off-peak months.
3. Diversify income: Rental-friendly homes buffer against price volatility.

The data backs her stance: with 2% annual price growth forecasted in 2025—down from 4.5% in 2024—the window for deals is narrow. Yet, the 7 million home shortage and stubborn seller psychology mean buyers who act decisively now may secure assets at a discount—before rates dip and prices rebound.

As Corcoran puts it: “The market isn’t crashing—it’s just evolving. And the best deals are for those willing to look where others won’t.”