Home Prices Continue To Skyrocket
Depending on which side of the coin you are on, high home prices are godsend or the bane of your existence. For home buyers, rising home prices have been very frustrating. Home buyers have found themselves in constant bidding wars as they try to buy the homes of their dreams. This is because of record low home inventory, while demand has been sky high because of near historic low mortgage rates. The ongoing bidding wars have been pushing home prices higher and higher. While everyone is aware that home prices have been increasing for months, the latest data is eye-popping. Home prices have reached some auspicious highs during the month of May and they will have a big impact on home buyers and home sellers.
May’s Home Price Data
Several different sources of data indicate that home prices increased significantly. First, the median home price in America shot all the way up to $350,000. This is a record-breaking figure. According to the National Association of Realtors this is a 24% increase from hope prices in May of 2020. Second, new data from CoreLogic indicates that house prices rose in May at a rate that is greater than at any point in the last 17 years. Both sets of research point to these rising prices being a result of high demand combined with low inventory.
Rising Home Prices are Great for Home Sellers
Anyone who is considering selling their home is thrilled by the rising home prices. Right now there is significant demand for nearly every house on the market, which means that home sellers are getting far more than their listing prices. This is what every homeowner dreams of when they think about selling their home.
Home Buyers Will Soon Get Relief from Rising Home Prices
While this is everything a home seller could dream of, skyrocketing home prices are daunting for home buyers. However, home buyers should start to see some significant relief. A lot of homes are starting to be listed. First, home sellers recognize that today’s environment is perfect to sell a home and they want to cash in while the market is still in their favor. Second, a lot of newly built homes are also starting to come on the market. Third, the federal foreclosure moratorium is ending at the end of this month. This is all welcomed news for home buyers who should see conditions improve greatly as we continue into the summer.
On the other hand, relief for home buyers means that home sellers should think twice before deciding to delay putting their house on the market. While it might be tempting to hold out as long as possible to get as much as possible, waiting too long is risky. Markets are zero-sum. What is good for buyers is not good for sellers. While it might be possible to delay listing your house and make more money, it is just as possible that you miss out on today’s prime sellers market. Right now, homes are selling very quickly. This might not be the case by the end of the summer if as much inventory becomes available as anticipated.
Final Thoughts
The home price data for May is shocking and is a good indicator of just how red hot the real estate market has been. However, markets change and sometimes they can change quickly. For home buyers, that is great news. The near future might produce a real estate environment where it is much easier to buy a home than it has been. For home sellers, all signs point to right now being the best time to take advantage of today’s market conditions.
If you are a homeowner who wants to take advantage of today’s prices and sell your home with a trusted professional, contact us. The team at Streamline Realty will help you get the most for your home and create maximum leverage between potential buyers. On the other hand, if you are wanting to buy a home and you are excited about the increase in inventory, you should also contact us. Our realtors can help you position yourself so that you can pounce on your dream home the second it is available.
