Everywhere you turn all you hear is about crazy home sales. Bidding wars and not enough homes for sale is a given. Homes selling within days of hitting the market- sometimes sold before the sign is put in the yard. Sellers are rejoicing by asking for lots of money and often get offers for more than the asking price. Buyers are thrilled to finally have an offer accepted.
It sounds too good to be true!
The National Association of Realtors predicts 2021 to be a record year for home sales. And while the crazy market is both profitable and frustrating some buyers are already feeling remorse. Paying a premium price also increased expected mortgage, insurance, and tax payments. After a few months, some buyers realize owning the most expensive home in the neighborhood may not be a good short-term investment.
Anytime the real estate market heavily favors one side over the other conditions have a way of throwing a monkey wrench into the situation. The impact of slightly higher mortgage rates, higher fuel costs, and inflation may help balance the sides. Rapidly rising prices have left some buyers wondering whether they should wait or bite the bullet and buy now. Tough call. The best advice, do your homework and buy for the long term.