During the pandemic, demand in America’s heated housing market continues to outstrip supply, causing prices to surge. It’s a problem that hasn’t gone away, according to real estate brokerage Redfin.
Not only are homeowners desperately seeking out additional space provided by a single-family home but they are looking to capitalize on historically low mortgage rates with the average rate on a 30-year fixed mortgage around 3%.
“Buyers found that they could purchase with very low-interest rates and lock in these rates for a long term,” Kristin Ehrgott, founding broker of the Live Here Property Group at Compass, New Jersey, told FOX Business. “This means that their budget can stretch higher on the purchase price of the home while still keeping their mortgage payments low for up to 30 years.”
This, among other factors, “is what caused the values of homes to increase rapidly and created the bidding wars,” Ehrgott added.
In fact, residents across the country are so desperate to nab a home that a record-high 51% of homes sold for more than their list price in the four-week period ending May 23, 2021, according to data collected by Redfin, which analyzed more than 400 metro areas nationwide.
And while the competition is finally…