Barbara Corcoran: The rise in housing prices will be insane. Here's when.

If you are planning to buy a house, you are likely in a difficult position. While it may seem logical to wait for mortgage interest rates to drop, if you wait too long, you might face rising home prices.

The real estate market of 2023: 10 most overvalued real estate markets in the USA — 5 of them are in Florida.

Also: 3 things you should do when your savings reach $50,000. In a recent interview with Fox Business, real estate expert and star of the show "Shark Tank," Barbara Corcoran, shared her predictions regarding the expected rise in housing prices and other issues. Find out why prices are falling in these cities.

A decrease in interest rates will lead to an increase in housing prices. As Corcoran stated, we are currently witnessing a "bottleneck" in the real estate market, but this won't last forever. "Sellers don't want to move from their apartments or houses because they don't want to take on loans at higher interest rates," she said, "and buyers are too afraid to purchase because they are getting less house for their money. So, there is a standoff. But the situation is changing."

Corcoran believes that there will be a significant shift in the real estate market as soon as interest rates drop. "Once these interest rates fall, everything will go against the current and prices will skyrocket," she said. "Right now, sellers are holding their ground. But they won't stay put if interest rates drop by two points. That will be a signal for everyone to go out and go crazy, and home prices will likely rise by 20%." She added, "We could see another market related to COVID."

Housing prices and market trends will continue to vary significantly across different geographical areas.

Although a recent report showed that housing prices have decreased for the first time in 11 years, Corcoran noted that this does not apply to the entire United States. "On the coast, prices are falling because homes are simply unaffordable," she said. "But if you look at the Southwest, prices are going up.

Another area where prices will continue to rise is South Florida. "Housing prices in South Florida are still increasing, and it's one of the hottest markets," said Corcoran. "People love Florida and are willing to pay any amount. I don't understand it - it's not my preference - but things are going very well."

There is no need to expect a major crash in the real estate market.

Although we are facing an unpredictable real estate market, Corcoran believes that we will not see a catastrophic collapse of the real estate market like what happened in 2008 due to the subprime mortgage crisis. "People have their hard-earned money in the market - no one is over-leveraging," she said. "It doesn't make sense to compare now with what it was before."

The commercial real estate market will recover very slowly (if it recovers at all). Corcoran views the residential and commercial real estate markets as separate segments, and therefore the recovery of one does not mean the recovery of the other. She believes it may take a long time before commercial real estate recovers. "Right now, no one believes that [commercial real estate] will get better," Corcoran said. "People are staying home. In our best offices in Manhattan, occupancy is at 50%, and in most major cities, even in secondary cities, the vacancy rate is 20%. No one wants to take risks. I don't see the situation changing. I think it will be a bloody mess for some time before things get better."