In recent weeks, the search term "housing bubble" reached new highs, and with good reason. This past year has seen ever increasing home prices and valuations. It seems understated to use the word "competitive" when describing the housing market, with potential home buyers vying for the same home with anywhere from 10 to 25 other buyers.
But are we in a housing bubble?
The resounding answer is no. While the rising home prices is pushing housing affordability out of reach for some, the underlying cause of the uptick in prices comes down simply to the law of supply and demand. With interest rates at record lows, and the pandemic causing folks to reevaluate their living and work from home situations, there are more buyers on the market. However, there just isn't enough supply to keep up with that demand.
New home builders are trying to push through their developments, but brand new builds take time. To compound the matter, raw materials such as lumber are getting harder to source and have doubled or tripled in price. The inventory of existing homes coming on the market has also been tepid, hampered by sellers' fear of having strangers walking through their house. Additionally, many home owners who would otherwise be selling have instead decided to take advantage of the low interest rates to refinance their homes and make home improvements instead.
If you're planning on buying a home in this environment, what can you do? First, I would suggest understanding the realities of today's market and setting realistic expectations that finding a home could take a little time. Next, don't try to time the market. No one has a crystal ball, and with home values rising, it's better to buy a home today, and sit back and watch your equity grow than to try waiting for that "right" time. You may instead find yourself priced out! Instead, reach out to me so we can set up some time to chat. I have proven strategies in working with a number of home buyer that will help make your offer stand out!
If you're planning on selling your home in this environment, that's great news! But even though this market favors sellers, it's still not the time to rest on your laurels. Let's chat so I can share how we can get your home to stand out with buyers.
