The housing market has been quite an interesting one to watch over the last year. Before Covid-19, housing was already limited, but it was further restricted as lockdowns were implemented. People began looking for new places for many reasons, from the desire to leave crowded cities to improved home offices or simply anxiety about missing out.
Since mortgage rates have remained fairly low, coupled with increased work-from-home possibilities caused by the epidemic, demand for housing has increased even more. Read on to know more about how the housing market has changed and its current situation now that we are close to the end of 2021.
In June 2021, residential property values increased by 17.2% compared to June 2020-a new high, according to the most recent CoreLogic study. While there have, undoubtedly, been hot-selling markets in the past, none compare to the current market, where more than 50% of houses have sold for over asking price.
However, according to real estate professionals, prices are beginning to slow down as more single-family home inventory has become available in certain areas. As a result, first-time homeowners and prospective homebuyers can be comforted by knowing that the housing market is stabilizing.
According to the National Association of Realtors, unsold houses increased 3.3% to 1.25 million during the second quarter of this year. Even though this rise in inventory is not enough to satisfy the demand, it could give buyers hope and possibly a buying impulse with more options to choose from.
Despite a slight fall in time-on-market, homes are still being snapped up rapidly as demand stays high. The time a property remains on the market is beginning to reflect seasonal trends. This October, the typical home stayed on the market for 45 days, 6 days fewer than last year, as the housing market slows down into the winter off-season.
According to experts, the combination of high demand and low mortgage rates has pushed home prices to such heights that it's becoming harder for first-time buyers to save for a down payment. This means that sellers could face more challenges to close transactions with potential buyers.
At the same time, new sellers are entering the market in nearly average numbers, and while housing values remain high, they may need to price their properties more competitively soon.
The end of the year house marketing is upon us; this means that buyers and sellers alike will want to do everything possible to get the best price for their house, so if you are selling your house or thinking of doing it soon, consider contacting cash home buyers.
Cash home buyers are special buyers who purchase houses without a mortgage, allowing you to sell your house quickly and in cash. They will not waste time qualifying for a loan or dealing with the banks; instead, they'll make an offer on your property while evaluating its value and paying in cash in as little as 7 days!