In a recent interview on Fox News dated March 13, 2025, Barbara Corcoran, a renowned investor from Shark Tank and an expert in the real estate sector, discussed the persistent supply shortages plaguing the U.S. housing market. This ongoing issue makes it increasingly difficult for prospective buyers to find available properties.
Supply Shortages: An Ongoing Challenge in Real Estate
When posed with questions regarding the potential stabilization of home prices, Corcoran clarified that the dilemma extends beyond rising interest rates; the primary concern is the lack of housing inventory. She stated:
“The biggest problem is it’s just not enough housing to go around.”
Corcoran pointed out that homeowners who locked in low-interest mortgages are reluctant to sell, which exacerbates the supply issue. This reluctance is compounded by market uncertainties and the principles of supply and demand. She also provided insights into how buyers can navigate this challenging market.
The Dilemma of Low-Interest Mortgages
Many property owners remain firm in their decision to stay put, having secured favorable interest rates prior to the current hikes. Barbara Corcoran articulated this point effectively, noting:
“More than two-thirds of America have 4% interest rates. Why would you sell your house? Why would you move? You have a 4% rate.”
This mindset contributes significantly to the housing supply constraints, keeping inventory low and consequently pushing prices upward. Although the rate of value appreciation has eased, as Corcoran pointed out:
“A lot of people are excited about the housing prices slowing down, but it’s less than a quarter percent, and that doesn’t provide a lot of relief for people.”
This means that, despite fewer home transactions occurring, competition for the limited available properties remains fierce, thereby maintaining elevated price levels.
Understanding Supply and Demand Dynamics
Corcoran emphasized that the fundamental problems in the housing market arise primarily from imbalanced supply and demand. She remarked:
“It’s always been the same old thing over the years. That doesn’t change. If you have too few houses, people pay more. And if they pay more, the housing prices go up.”
The scarcity of homes for sale forces prospective buyers to compete vigorously for what few options are available, preventing prices from dropping significantly. Even with the fluctuation of mortgage rates, the constraints of supply continue to play a critical role in determining market affordability.
When discussing the potential role of government intervention, Corcoran asserted that the market tends to respond to engagements of supply and demand, often independent of external influences, leading to sustained price increases even amidst rising interest rates.
Market Uncertainty and Buyer Strategies
Beyond the constraints of supply and demand, Corcoran also highlighted the profound impact that market uncertainty holds over both buyers and sellers. She explained:
“I’m hearing from everyone that there’s great uncertainty. And uncertainty is bad for business. Uncertainty makes people pause, which is a problem.”
Though this atmosphere of doubt may decelerate market activity, it does not necessarily equate to a decrease in home pricing. For those navigating this challenging landscape, Corcoran recommended strategies to enhance buyers’ chances of success. She advised leveraging seasonal trends, particularly noting:
“You can shop in the spring market when people are away for spring break. Houses are undersold in that week because nobody’s around to sell those houses.”
Additionally, she mentioned that homes in need of renovation, or fixer-uppers, may provide a more accessible entry point into the market due to ongoing financing opportunities for such properties.
For those interested in more from Barbara Corcoran, tune in to the latest episodes of Shark Tank, airing Fridays at 8 PM ET on ABC, with additional streaming options available on Hulu.