The Corcoran Group founder and Shark Tank star Barbara Corcoran speaks with Yahoo Finance's Allie Canal on the state of the housing market, whether it's a good time to buy a home, and Tesla CEO Elon Musk's latest antics.
DAVE BRIGGS: Yet another sign of a cooling real estate market. Data shows pending home sales sliding for a sixth straight month in April as mortgage rates continue to creep up. Yahoo Finance's Allie Canal caught up with "Shark Tank" investor and founder of the Corcoran Group Real Estate, Barbara Corcoran, to discuss what she's seeing in the market. Allie, what did she tell you?
ALEXANDRA CANAL: That's right, Dave. I finally had a chance to sit down with Babs, my favorite shark from "Shark Tank." And she had a lot to say when it came to the real estate market. You mentioned that we got a slew of economic data out this week, mortgage rates dropping for the second straight week, but still above that sky high 5% level. And those high borrowing costs are beginning to take a toll on purchases. So I asked Barbara, are we entering a bubble of sorts? Is this bubble about to burst? Here's what she had to say.
BARBARA CORCORAN: I don't believe so, although you can't predict the future, but my own feeling in all the years of real estate is that the market is overinflated, granted, ask any new homebuyer whether they think they're paying the right price for a house. It just keeps running away and getting higher and higher. But the demand is so much far exceeding how many houses are out to go around. No, I think we're going to have a needed softening in the market, meaning prices aren't going to go up as fast, if you could call that a softening.
But it's good in a way because, I mean, I don't want prices to come down. They're not going to. But it gives more people an opportunity to catch up with the market, catch up with themselves, maybe buy their first house. So I see it as a tempering is kind of good. Nobody likes high interest rates. It costs you more to buy a house, but it's going to keep things a little bit more normal. And I'm really looking forward to that, yeah.
ALEXANDRA CANAL: And to that point, what's your advice to new homebuyers? Should they wait it out, wait till prices drop, or do you think this is going to be around for some time?
BARBARA CORCORAN: No, nothing but waiting, because prices will-- my opinion-- prices do continue to go up. And you pay more for the house because interest rates are going up. I think in real estate, most middle class people have the greatest wealth from their home when they're ready to retire. And I think you have to get in the game. You have to get in with whatever house you can possibly buy, so you have a chip to play in the game and trade up and trade up and trade up. And that becomes a retirement fund.
So, no, I think the sooner, the better. You really can't sharpshoot a real estate market. You can kind of get close, but what you have to do is answer your family's needs. And people just like to own where they live, hang a picture on their wall, not the landlord's wall. There's somewhat psychic gain also in owning. So no, for so many reasons. I mean, I wish I could buy everybody in America a house, not to repeat that, because I can't afford it. But everybody should have their house. I just think it still is the American dream.
ALEXANDRA CANAL: And to that point, do you have certain cities or markets that you have an eye on when it comes to this boom that we're seeing in the real estate market?
BARBARA CORCORAN: Well, the boom has been in every city. In the South, it's been a greater boom than certainly in the East and the West. But there isn't a single market that I would point to, saying it has a much better chance, because the one thing when you buy into a market that's the highest market, it comes down the fastest, too, or it simmers down the fastest. So I think you should buy where you most want to live. I think that's a great guide as to where you should buy. You don't approach buying a home like an investor. It's not about that. It's about buying a home for your family. That's really where your head should be at.
ALEXANDRA CANAL: Some interesting advice there. Get in the game, don't sharpshoot the market, and don't approach home buying like an investor. Got to love Barbara Corcoran.
SEANA SMITH: We always do, Allie. And I know we have heard Barbara talk about Elon Musk in the past. Now he's been in the news. There's been so much going on with the Twitter deal. And also, he's been so vocal on Twitter, as he always is. What are her feelings just about him and what we've learned about him and learned about some of his approaches to things over the last several weeks?
ALEXANDRA CANAL: Yeah, so I really wanted to get her take on Musk because Barbara previously sung his praises during an interview with Yahoo Finance. Not too long ago, January 2020, she called him a winner. Said, any great leader is a little rough around the edges, has a strong opinion. But today, she has a much different take. Here's what she said.
BARBARA CORCORAN: Well, I'd like to zip in a Ziploc bag and try to get his ego stuffed inside and calm him down. He's a bit much lately. I liked him better who he was than who he is lately. It's kind of like, way a little bit out of hand. So I'm hoping he could simmer down. He needs a good woman to put him in his place.
ALEXANDRA CANAL: So that's her take, a good woman to put Elon Musk in his place. Of course, there's been a lot of drama when it comes to his $44 billion Twitter takeover deal. Just last night, a new lawsuit was filed by Twitter investors who alleged that he manipulated the market to drive down Twitter's stock. He also did not timely disclose his stake in the company under SEC law. So there's been a lot of questions about whether or not this deal will actually go through, let alone at that $44 billion price tag. So a lot to watch with Musk, but he's losing a fan right now in Barbara.
SEANA SMITH: And you never want to do that. And I totally agree with what Barbara was saying. She just needs to get-- he needs to get--
DAVE BRIGGS: A good woman?
SEANA SMITH: A good woman, but more so, his ego just needs to be checked right now.
DAVE BRIGGS: No question, but a good woman can do that.
SEANA SMITH: A good woman can do that. I don't know.
DAVE BRIGGS: Strong woman.
SEANA SMITH: Elon Musk, you might want to listen to Barbara Corcoran.
DAVE BRIGGS: Barbara.
SEANA SMITH: She normally knows what she's talking about.
DAVE BRIGGS: I like it.
SEANA SMITH: All right, Allie Canal, thanks so much for bringing us that.