Shark Tank host and real estate guru Barbara Corcoran is putting her money where her mouth is and scooping up shares of real estate marketplace giant Zillow (Z).
Since being asked in a November Yahoo Finance interview if Zillow shares bottomed after falling 21% on news the company was ending its home buying operation, Corcoran says she was confident enough to jump on the stock.
"I did invest in Zillow, remember you asked me last time?" she said Thursday on Yahoo Finance Live. "I did, and I've lost 2 [percentage] points so far, but I know I'm going to make a fortune. I know i'm going to make a fortune if I just hang on maybe another three, four months. I think they are doing better than everybody expected."
The company said last month its algorithms had misjudged the prices it would be able to get for the homes it was looking to flip. With Zillow offloading about 7,000 homes and shutting down that part of the business, Corcoran predicts the company can get back to its winning ways by riding a home market that doesn't appear to be showing any signs of slowing down. A recent Redfin report pointed to record high home prices in America on a record low inventory of homes for sale.
"Homes [for sale] in November always go down, but they went down 23%. I've never seen that happen before," she said. "On those homes that sold in the month, they sold in a week or less. Think about that. That's bizarre. The housing market was bonkers now it's still nuts."
From a local perspective, Corcoran said she's reallocating money out of high-priced areas and into less developed ones. After spotlighting Raleigh, North Carolina as a top market earlier this year in the pandemic, the Shark Tank star says she's increasingly bullish on Pittsburgh real estate.
"I'm taking a lot of money out of real estate in New York because I think it's priced so terribly high as an investment right now and I've looked for other smaller cities to invest in," she said. "I've invested a lot of money in Pittsburgh because Pittsburgh is like the perfect storm right now, it's got a friendly government, it's got the most educated work force in America and it's got big businesses moving in there, specifically technology businesses and prices are deflated they shouldn't be. They're catching up."
Aside from Zillow and scooping up more real estate, Corcoran didn't flag any other outside assets worth putting on her radar for 2022.
“I’m so sorry to say I love real estate. I trust real estate," she said. "It’s a very, very, slow way to get very, very, rich.”
Zack Guzman is an anchor for Yahoo Finance Live as well as a senior writer covering crypto, cannabis, startups, and breaking news at Yahoo Finance. Follow him on Twitter @zGuz.
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