If you’re ready to sell your house, recent data suggests 60% of homes are selling over asking price. That means sellers today have an incredible opportunity to maximize their house’s potential so they can capitalize on this hot sellers’ market. U.S. home prices rose in the second quarter as buyers battle with a shortage of listings. Low mortgage rates have stoked the hot U.S. housing market for more than a year now. This amidst a shortage of inventory that has resulted in higher prices ever.
Many buyers are having difficulty finding properties they can afford. The median price of an existing single-family home jumped 23% from a year earlier to an all-time high of $357,900, the National Association of Realtors said in a report Thursday. About 94% of 183 metropolitan areas measured had double-digit gains, up from 89% in the first quarter.
Lawrence Yun, chief economist for the Realtors group says in a recent report, “Home price gains and the accompanying housing wealth accumulation have been spectacular over the past year, but are unlikely to be repeated in 2022. There are signs of more supply reaching the market and some tapering of demand.”
In an article published August 16, 2021 in At Home Colorado, “Housing affordability for first-time buyers is weakening,” Yun said. “Unfortunately, the benefits of historically low interest rates are overwhelmed by home prices rising too fast.”
So, the question is where do we go from here if you’re buying a home? In our last blog post we discussed the WOW!, hot sellers real estate market that results in inevitable “buyer’s fatigue.” Staying focused and motivated is not easy because just when you think you have found your dream home the rug is pulled out from under and major disappointment steps in.
Market Watch discusses the fact that most homes are selling well above asking price and bidding wars have decided who wins the prize. It’s disconcerting, as seller hesitate to put their homes on the market for fear of not finding a replacement. As a result, properties are rapidly sold and those bent on buying a home are frustrated.
Building More is The Answer
This underscores the need to begin to begin to build more homes as it is estimated, in Forbes Magazine, that 5.5 millions more units are needed in the next 10 years to keep pace with demand quoting a WSJ report published June 16, 2021. This because construction of new homes has lagged in the last two decades, contributing to the recent surge in home prices. This according to a new National Association of Realtors report, which is calling for a “once-in-a-generation” policy response. This is a staggering goal, but unless it is met housing will prices will remain out of reach for many and housing insecurity will worsen. “[W]e’ll need to do something dramatic to close this gap,” said Lawrence Yun, NAR’s chief economist, in a press release.
“Decades of underinvestment and underbuilding have created a shortage of housing in America that is more dire than previously expected and will require a concerted, long-term nationwide commitment to overcome, according to a new report released today by the National Association of Realtors® published June 16, 2021 and authored by the Rosen Consulting Group.
Bankrate states that, “In California and Colorado, fully 60 percent of homes sold last month fetched more than their asking price, according to research by the National Association of Realtors. In Oregon and Washington, 56 percent of properties topped their list price. And in Massachusetts and Utah, 54 percent of home sales topped the asking amount.” So how do your deal with those stats if you are ready, willing and able to buy?
How Buying a Home Can Become a Great Experience
Because buyers are at a disadvantage, the first rule is to be prepared to bid aggressively by getting approved for a bigger mortgage. Move fast, your specialist at Katchen Company is prepared to tour properties the minute they hit the market. No time to haggle, some buyers are foregoing inspections or appraisals. Know when to walk away if you are uncomfortable bidding up and joining the buying frenzy. Wait for another house to come on the market.
You deserve the Katchen Company specialized experience. Their highly experienced brokers love being able to assist clients with the challenges that real estate transactions present. They are an essential partner in making complex real estate transactions. Clients trust their solid dependability, insight, and expertise to move them forward into an ever-changing future.