Homes are selling left, right, and center. If you read our recent post, how to accurately price your home for sale, you’ll know that sellers know very well how much their homes are worth and how much they should be listing them for. But homes are still selling way above list price, in some cases, double the asking price. This is causing a lot of confusion and concern for first time home buyers trying to enter the market and real estate watchers alike.
How the Pandemic Affected Home Prices
Like almost everything lately, the answer comes down (in part) to the pandemic. The way Covid-19 and the stay-at-home orders upended our lives has given us a new perspective on what we need and expect out of our homes. For many of us that means moving somewhere else.
For others, it can mean putting the sale of our home on hold while we wait for it to be safer to do showings and closings in person. The result? More people looking to move than there are houses to move into, and the price for the few available is going up accordingly.
America’s Housing Shortage
In that vein, America in general is facing a massive housing shortage. The Wall Street Journal estimated that the US is short somewhere near 3.8 million single family homes. This shortage (caused by several years of development being slowed) is being especially felt by first-time homebuyers. With America being nearly 4 million homes short of what’s needed to adequately meet demands, it’s not surprising that many are being edged out of the market entirely. It’s creating some frantic behavior in buyers, including making offers way over list price in an attempt to secure their dream home.
What can I do?
If you’re looking to buy a house right now you may find it’s an uphill battle for homeownership. Some experts are encouraging people to wait and let the dust settle and not get caught in the trap of buying what doesn’t fit your needs. That may or may not be an option for you. The best way to move forward while home prices skyrocket is to keep an open line of communication, with your family and the professionals helping you with your specific situation and needs.
Although houses are selling for way over their list price right now, it doesn’t mean home ownership is permanently out of reach. When the time comes remember us! Georgia Law requires a real estate attorney be present at closing to ensure everything is legal and fair. At Frank B. Pallotta Law we are licensed Real Estate Lawyers with 20 years of experience helping our clients in Georgia navigate the closing process. Reach out to us with your questions.