You’ve probably heard that home prices have been rising. If you have been in the market to buy a home, you may have encountered rising prices, lack of supply and a crazy amount of competition for every home that comes on the market.
Why is this happening?
There are a number of forces at work including a low supply of homes that are available for sale. The uncertainty of the pandemic made many people decide that they needed to stay where they were and not put their house on the market. Also, newly constructed homes have not been meeting the rising demand for over a decade since the crash of 2008. When that crash happened, builders pulled back and slowed their construction.
Low mortgage rates have made it incredibly cheap to borrow money. People who could not afford to buy a home suddenly found prices within reach because interest rates were so low. This added to the demand for homes.
All of these forces and others have combined to create more demand for homes than the supply is able to meet. When demand exceeds supply, homesellers are naturally going to raise their prices, sometimes by tens of thousands of dollars.
Many homes are receiving multiple bids within a day or two of going on the market. Buyers are desperate to find a place to live and they are bidding more than asking price just to be considered by the seller.
To buy a house in this environment, you need a plan and you need the help of an experience team that knows how to make a deal happen.