By Tamra Haase
Ever since the housing market has emerged from its pandemic driven freeze in late spring 2020, there has been a frenzy of home buying and a sharp rise in prices. The common explanation is that the pandemic has swollen the ranks of those who need more private space for work and play and safety from possibly a home office atmosphere. More are home and needing more space.
But why has that translated into fast-rising home prices all around? After all, if buying a new home means leaving behind an old one, an equal contribution to supply and demand…then what’s disturbing the market balance and driving up prices? A number of factors are at work. Some are well known, and others like innovations that speed up home buying.
Supply and demand oftentimes is a big reason sales may sore in price. We are experiencing an all-time low in interest rates which can assist in buying more homes for the money.
One effect of the pandemic has been to prompt many renters to make the leap into home buying. To some extent, that’s because the U.S. housing market traditionally associates multifamily housing with rentals, and single-family homes with homeownership (despite recent trends to the contrary), leaving those who want more private space fewer options except buying a home. We have seen more people take early retirement and are ready to downsize. We see the renters decide to buy their first home and then the family that is growing make the leap to the 5-bedroom home.
Many ask me how long this housing frenzy will go on? I don’t have a crystal ball, but, if you are looking to buy, don’t be disappointed in having to make a few offers on homes. Be patient and stay positive. Don’t let your emotions take the fun out of your dreams. The right one that is meant to be for YOU and your needs will come up when the TIME is right for YOU!
If you want to sell, don’t get too caught up in the “greed” frenzy. Be smart and call me. I will advise you on the best time and way to approach the possibility of multiple offers and the best possible offer that fits your financial position and gets you moving.
