Three Things To Know About Today’s Housing Market
One thing is obvious from what we've observed over the past two years: the present housing market is one for the history books. These are three crucial factors that can help first-time buyers understand how this market is being shaped.
The Shortage of Homes for Sale
In January 2022, the number of houses up for sale reached an all-time low. According to realtor.com's chief economist, Danielle Hale:
“We expect that we’ll start to see a turnaround and inventory will stabilize and start to go up a little bit in 2022. . . . But that means we’re looking at inventory levels of roughly half of what we saw before the pandemic. For buyers, the market is likely to continue to move fast. If you see a home you like, you want to jump on it right away.”
Buyer Competition and Bidding Wars
Due to the persistently low supply and strong demand, there is intense buyer competition, which leads to bidding wars. Some buyers are making overbid offers, all-cash offers, or waivers of certain stipulations. But keep in mind that the inspection is vital to establish the state of the house you're buying, so don't skip it.
Home Price Appreciation
The buyers' competition is raising prices. All throughout the nation, home price growth has surpassed previous records in the last year. ContinuityLogic claims:
“Home prices rose 18% during 2021 in the CoreLogic Home Price Index, the largest annual gain recorded in its 45-year history…”
The good news is that growing prices give you confidence that your investment will pay off in the long run. This is because when you move in, the continued price appreciation will contribute to the long-term increase in your home's value.
To help you find and buy your first home, you need the support of a real estate professional that you can lean on for insights on today’s housing market, what’s happening in your area, and expert advice for how to submit a strong offer at a fair price.