10% home price surge? 💸

Today’s top stories…

• Real estate millionaire Barbara Corcoran predicts 10% home price surge if mortgage rates dip

• Convicted crypto king's $222M Bahamas real estate empire hits the market

• Italian town's 1 euro home sale hits a major snag 🇮🇹

• Deal of the Day!: No deals today. Have a great weekend!

Today’s mortgage rate (30 Yr. Fixed): 6.91%

Shark Tank's Barbara Corcoran: Mortgage Rate Dip Could Spark 10% Home Price Surge

Barbara Corcoran, the self-made real estate millionaire and Shark Tank star, has a prediction that'll make your wallets sing: If mortgage rates drop just one more percentage point, home prices could skyrocket by 10%!

Here are the juicy details:

• The average 30-year fixed mortgage rate is currently 6.91%, down from the 8% we saw in October, but still higher than pandemic-era lows.

• Corcoran believes 6% is the "magic number" that'll bring sidelined buyers rushing back into the market.

• National average house prices have already risen nearly 50% since the start of the pandemic, with the average sales price hitting $492,300 in Q4 2022.

But wait, there's more! The housing shortage is still a major player in this game, with estimates ranging from 2 to 7 million missing homes. Even the Biden administration and the Fed Chair are taking notice.

Now, some of you might be thinking, "What about that groundbreaking $418 million NAR settlement? Won't that bring prices down?" Not according to Corcoran! She believes sellers will pocket any commission savings and keep pushing for the highest prices possible.

So, what does this mean for you, savvy real estate investors?

• Keep an eye on those mortgage rates! If they dip to 6%, be ready to pounce.

• Don't wait too long, or you might end up paying even more as prices continue to climb.

• Stay informed on the housing shortage and any potential policy changes that could impact the market.

Crypto Castles to Courtroom: SBF's Bahamas Properties Up for Grabs

Remember Sam Bankman-Fried, the disgraced crypto king who's now facing a 25-year prison sentence for the massive FTX fraud? Well, get ready to see his $222 million Bahamas real estate empire hit the market!

FTX has reclaimed a whopping 38 properties from Bankman-Fried and his cronies, and they're gearing up to sell them off to pay back the legion of defrauded customers. Here's what's on the menu:

• The infamous $30 million penthouse at Albany Bahamas, where Bankman-Fried lived with his on-and-off girlfriend and fellow execs

• 15 other properties in the Albany resort community, valued at $151 million total 🌴

• 7 luxury condos at Goldwynn Resort & Residences, worth $7 million

• 4 condos at One Cable Beach, purchased for $5 million by Bankman-Fried and his inner circle 🌊

• Various commercial properties, including office spaces and land for FTX's planned headquarters

But wait, there's a twist! The $16.4 million vacation home owned by Bankman-Fried's parents is still in limbo. Despite their claims of voluntarily returning the property, FTX alleges the title remains in their names. Talk about a sticky situation!

Italian Dream Homes for a Euro? Not So Fast.

The Italian town of Patrica had a brilliant idea: sell off their abandoned homes for just 1 euro each (that's about $1.08 in good ol' American dollars) to breathe new life into the area. Sounds like a dream come true for fixer-upper enthusiasts, right?

Well, not so fast. Turns out, there's a massive roadblock in the way of this seemingly perfect plan.

According to Italian law, the town needs permission from the original owners to sell these properties. The catch? Many of these owners left their homes way back in the early 1900s, making tracking them down a real challenge.

Mayor Lucio Fiordaliso compares the process to "looking for a needle in a haystack." With relatives spread far and wide, disagreeing on the sale, or barely knowing each other, it's no wonder only two of the nearly 40 homes have been sold so far.

Now, you might be thinking, "Hey, I've heard about these 1 euro homes before! What's the big deal?" Well, here's the scoop:

• While the strategy has worked in other Italian towns like Mussomeli and Zungoli, Patrica's unique situation has made it nearly impossible to move these properties.

• Even if you do manage to snag one of these dirt-cheap homes, be prepared to shell out tens of thousands of dollars in renovation costs.

• Some new owners have found themselves in over their heads with the amount of work required to make these homes livable.

Ciao for now!

See you on Monday!

✍️ Brett