WHAT’S GOING ON IN THE HOUSING MARKET RIGHT NOW?
Bidding wars declined in recent months from a high 71% of offers down to 61% of offers, according to Redfin data. Meanwhile, mortgage rates have jumped by over 2% so far this year according to Freddie Mac data, and it’s likely they’ll continue moving higher as the Fed removes its pandemic-era stimulus programs. This is prompting many homebuyers to rush to make offers on homes before interest rates increase further. The increased demand for homes is happening at exactly the same time as a widespread shortage of housing due to over a decade of under-building. In fact, the US is currently facing a housing shortage of over 5 million homes according to the National Association of Realtors.
WHAT SHOULD YOU DO ABOUT IT?
- Home Buyers: If you’re a homebuyer, it may be worthwhile to re-adjust your expectations, move quickly, and be prepared to bid above the listing price in order to win the offer on your home. Although bidding wars have declined in many markets, over half of all homebuyers are still facing bidding wars.
- Home Sellers: If you’re thinking of selling your home, this would be the perfect time to do so. That’s because you can likely get top-dollar for your current home and still lock in a relatively low rate and monthly payment on the new home before interest rates increase further.
Contact me for more info or to evaluate your options!