Three Things To Know About Today ’ s Housing Market
Based on what we ’ ve seen over the past two years , one thing is clear : the current housing market is one for the record books . As a first-time buyer , here are three key components that are shaping this unprecedented market .
The Shortage of Homes for Sale
The number of homes available for sale hit an all-time low in January 2022 . As Danielle Hale , Chief Economist for realtor . com , says :
“ 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
The ongoing low supply , coupled with high demand , creates significant buyer competition and bidding wars . Some buyers are offering over the asking price , all cash , or waiving some contingencies . Just remember , you don ’ t want to waive the inspection , as it ’ s necessary to determine the condition of the home you ’ re buying .
Home Price Appreciation
That competition among buyers is driving prices up . Over the past year , home price appreciation has reached record levels throughout the country . According to CoreLogic :
“ 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 , rising prices helps you know you ’ re making a good long-term investment . That ’ s because once you move in , that ongoing price appreciation will help grow your home ’ s value with time .
Bottom Line
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 .
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