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arbara Corcoran, CEO of the Corcoran Group, believes that interest rates could reach 5% by 2025, which would send the real estate market into overdrive. However, she's concerned about the current state of homebuyers, citing that first-time buyers are at a historic low of 24%, while cash buyers are at an all-time high of 27%. This imbalance is worrying Corcoran, who thinks it's essential to have more first-time buyers in the market.

    Despite rising interest rates, which climbed closer to 7% this week, existing home sales jumped 3.4% in October, according to the National Association of Realtors. However, Corcoran notes that the increase is largely driven by repeat buyers and cash transactions, rather than first-time buyers. She warns that if interest rates continue to rise, it could slow down not only the housing market but also other sectors of the economy.

    Corcoran sees some hope in local markets, particularly in the Midwest, where prices have increased 7% compared to last year. She believes this region has more steam and potential for growth, and is waiting for interest rates to drop to 5%, which she thinks would spark a surge in sales.