Did you know the supply of homes has dropped by 1/6 compared to years past when there were more homes from which to choose? As inventory decreased, the number of buyers increased. Many sellers were too uneasy due to of the pandemic to put their home on the market. More recently, homeowners are concerned about being able to purchase a new home after selling their current one.
More buyers are out looking for a larger home where they can work at least part time. Since the interest rates are also low, buyers want to take advantage to lock in some of the lowest interest rates not seen in many years.
This situation in the market is creating the perfect storm. There are multiple offers for about half the escrows. We are now seeing buyers offering no contingency for inspections or financing as part of their offer. I sold a home for $200,000 over asking price with no contingencies because it was a unique view home.
The tight real estate market is expected to continue through this year so hold on tight to this fast-moving real estate market. It’s going to be quite a ride.
Home prices in many areas in the country and locally have been surging in this hot market. There are implications for homeowners that give them many options even if they do not want to sell. Renters all have seen rents on both sides of the scale. Understanding why prices are surging is helpful to see benefits and challenges as a result.Read This Post