Imagine a home in Berkley, CA, selling to a buyer that paid $1 million over the asking price to beat out 29 other buyers. Why? A strange phenomenon has overtaken the housing market, and prospective homeowners are finding themselves in a seller’s market when they come to the table looking for a new home. The coronavirus pandemic has caused the perfect storm for homebuyers that is causing the price of houses to rise and made the home buying process far more competitive.
Here’s what caused the spike in home costs.
COVID-19 shifted consumer habits in a very short period of time. People who lived in smaller spaces and commuted to work in big cities found themselves suddenly homebound and in need of…
While mortgage rates fluctuate, they’re still sitting at record lows, making it the perfect season for housing shopping. Still, Sacramento realtor, Rick Delgado, says there’s a massive shortage of available homes in the current housing market. The low inventory of available homes has created a shopping frenzy that characterizes this unique seller’s market.
Bidding Wars
According to the National Association of Realtors, as of the end of February 2021, housing inventory remained at a record low of 1.03 million, down by almost 30% compared to last year’s numbers. The lowest number of homes available since 1982.
The average time of a house in the market was less than 20 days – a record low.
