It is estimated that the housing market is short about 4 million homes to meet buyer's demand. Builders have just not kept up with the need in the marketplace. To say it is a seller's market is an understatement. Houses are often selling above list price as buyers bid up prices. Home inspections are being waived, or at least ignored in terms of required repairs as home are being sold "as is".
What all this means is that it may take more than 3 years to catch up with demand as long as interest rates remain low, prices are likely to remain high. However, if President Biden raises taxes, it could cause a recession. If that happens, there will be lay off's and fewer people in a position to buy homes. If interest rates go up besides, which is likely because of projected inflation coming our way, it could bring home prices down.
A lot of this is a crap shoot. What we know today is that home prices have gone up dramatically. Average home prices nationally are above $300,000. In many markets, prices are significantly higher. The cost of building materials are going through the roof, which insures that new home prices will keep going up. Used homes bench mark against new homes. So used homes are usually about 20% less expensive that new homes. So as the price of new homes goes up, so will the price of used homes.
At Paragon Home Resources, we work with families all over the country to sell and buy homes. We know how to negotiate the best price when selling and the best price when buying. In these times, having an expert on your side is even more important.
