According to a recent CNN article, the housing market is on a tear, after a slowdown at the beginning of the pandemic. You can read the entire story about one Washington, D.C.-area realtor who listed a property that received 76 all-cash offers in the first 72 hours. Incredible!
The article specifically mentions that home sales bounced back a few months after the pandemic began, but inventory did not. That increased demand, coupled with a lack of supply, has driven home prices up at a crazy pace. According to the National Association of Realtors, the median price of a home has risen 16% from last year.
It seems to be the competition that is driving home prices up so much, and causing this market to take off, however, buyers ultimately determine what they are willing to pay for a home. A long-standing slowdown in homebuilding, plus the pandemic, plus the low interest rates, a desire for more space due to working from home, and a recent exodus out of the cities (since people don’t need to be so close to work) have all contributed to this buying frenzy and a perfect storm for the housing market right now. It isn’t just happening in California, it is across the United States.
If you’re buying, buckle up, because it might be a bumpy ride. Many offers that are being accepted see the buyers removing all of their contingencies. Do I think that is smart? No, but if you have to get into a home and have written and lost 10-plus offers, then a buyer may just do that! If you’re interested in knowing more about the market, the process, or are ready to sell, now might be the best time to do it. In either case, if you want to buy or sell, especially in the East Bay, please give me a call. I’d be happy to help you out!