If you are looking to buy a home right now, prepare yourself. In February, median home listing prices increased by 12.9% over the previous year — which was already 26.6% over February 2020’s prices.
Over the past year, the real estate market has seen some surprising numbers. Low housing inventory combined with record low mortgage rates led to substantial price increases. Now, while mortgage rates are climbing, potential buyers are still facing low housing inventory. All of this increased demand without an increase in homes for sale continues to drive housing prices up.
Realtor.com also reports that homes are still selling quickly. In February, it took about 47 days on average for a home to sell — which was 17 less days than February 2021.
So what can we learn from this?
Well, if you want to be competitive, you need to come prepared. Understanding how much you can spend on a home is crucial. Having a clear idea of what you can offer as a down payment and how high over a listing price or appraisal you are willing to go can help you quickly create an offer with your Realtor when you fall in love with a property.
Some good news for buyers did come out of the Realtor.com report — new listings increased in the final two weeks of February. If the trend continues, there may be more housing inventory to deal with demand.If you are looking for a home in this hot market, partner with someone who is dedicated to helping you find the right property for you. Contact me today and let’s find your next home.