"It's all bad news" — When Shark Tank star Barbara Corcoran discussed the housing market’s latest challenges

Barbara Corcoran, real estate investor and Shark Tank star, shared her insights on the housing market during a Good Morning America interview on February 7, 2025. When asked about the Federal Reserve's decision to keep interest rates steady, she explained that many homeowners would likely hold onto their current low mortgage rates rather than sell their properties. Corcoran stated:

"There's going to be a shortage of houses on the market and prices are going to go up, so it's all bad news."

The Shark Tank investor's interview covered key topics such as whether it is better to rent or buy, the impact of rising mortgage rates, and concerns over home insurance policies.

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Shark Tank's Barbara Corcoran analyzed the current housing market's biggest challenges

The effect of interest rates on the housing market

The Federal Reserve's decision not to raise interest rates has significantly impacted homes for sale. Shark Tank investor Barbara Corcoran said that most homeowners are unwilling to sell, as they wish to hold on to their lower mortgage rates. This has led to a reduced supply of available homes, increasing prices.

Corcoran added:

"It's a little disappointing because a lot of people thought rates would come down this year, but what it does as an exact effect right now is homeowners are going to hold on to the low interest rates they already have and not put their houses on the market."

With fewer homes for sale, competition among buyers has intensified, making it more challenging for prospective homeowners. This plays into the cost factor and brings about a market standstill, whereby buyers and sellers will not take the initiative.

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Is it better to rent or buy?

Barbara Corcoran addressed the common question for prospective homeowners, which is whether to buy or rent in the current market. She explained that while renting may be more affordable in some cities, purchasing a home provides long-term financial benefits. She noted:

"Rents have gone up 18% in the last five years, and house prices have gone up 54%, so it's cheaper in most towns certainly to rent than to buy."

However, the Shark Tank investor pointed out that homeownership offers additional advantages, stating:

"Buying offers you a lot—it offers you a chit in the game, it offers you depreciation, and it offers you forced savings, which a lot of people discredit, but it's very important."

Even with the benefits of purchasing, affordability is still an issue. Corcoran found many cities where renting is the better value, such as San Francisco, Seattle, Salt Lake City, and New York City. Some cities that were found to be cities where purchasing is more affordable include New Orleans, Chicago, Pittsburgh, Miami, and Memphis.

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Home insurance challenges and market risks

Besides issues of affordability, Corcoran addressed the problem of home insurance, especially in risk-prone locations like California. She underscored the rising problem of homeowners finding it difficult to obtain or keep insurance coverage. She stated:

"The big insurance companies have gone up and asked for a 25% raise, and a lot of people are not willing to give it, but they need the money to insure."

The Shark Tank investor advised homeowners to be proactive in managing their insurance policies, emphasizing the importance of automatic payments through a bank to avoid lapses. She stated:

"You have to really price out policies because rates vary, and you have to be prepared to constantly move around on insurance companies."

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