In the current state of the 2021 housing market, many homebuyers are searching for homes in the suburbs rather than city living. Is this due to the price surge in homes?
We’ll give you insight into the market trends Americans faced this year and tips on how homebuyers can navigate a competitive season.
What are the current housing market conditions?
Here are a few market trends we have seen in summer 2021:
• Interest rates rose slightly, but are still relatively low
• Rental assistance continues to provide relief for those worried about evictions
• In many areas, there was a high demand for houses, but a low supply of homes for sale
• There is a current house prices surge
Why are the prices of houses surging?
Due to the supply and demand issues in this summer’s market, the price of houses is currently skyrocketing. Although the supply of houses is steadily increasing, sellers are selling their homes for a higher price to have the upper-hand in the competitive market’s bidding war. The National Association of Realtors notes that in February, the national median price for a home was $313,000. This is a 15.8% increase from the year before!
Tip: These numbers are a national average — individual housing markets will vary by area. Speak with a local real estate agent to learn more about home prices and your local market condition.
How long will the supply and demand issues last in the market?
The National Association of Home Builders predicts that the United States will continue to face a tight housing supply market for the next 3 to 5 years. Because of this, long-term planning for homebuyers is crucial.
In the meantime, while prices continue to rise, buyers can take advantage of low mortgage rates and secure a larger loan. When you’re thinking of buying a home, it’s a good idea to look into getting pre-qualified or pre-approved before making an offer on a home. To understand the difference between the two, check out our resources on the mortgage pre-approval process. Showing up to an open house with a pre-approval letter shows the seller that you’re serious about your offer and you can afford the asking price. You can also find a loan officer near you to assist you in securing a larger loan.
What can you expect over the next few months to finally get the home you’ve been wanting?
As the fall season approaches, we expect the prices of homes to decrease slightly as more homes are being put on the market. However, it is important to keep in mind the following strategies that you can use when preparing to buy a home during a competitive market:
• Get familiar with the area where you’re buying
• Expect to pay more than the asking price and save accordingly
• Get pre-approved for more than the asking price
• There are supply and demand issues in the market causing a pricing surge
• There will be a tight housing supply market for the next 3-5 years
• You should get pre-qualified and pre-approved for a mortgage prior to making an offer
Summer 2021 market conditions were overwhelming for many homebuyers. At iLENDi, we want to help you navigate this competitive market. To start the process of getting pre-qualified for a mortgage, get a quote from our virtual assistant — Lucy.
What did the happy realtor put on their business card?
I have ‘a lot’ to be grateful for!