As the economy continues its recovery from the COVID-19 pandemic, certain industries are starting to make a comeback. One of the most popular is the real estate market. Houses seem to be selling only within a matter of days of entering the market, and at much higher prices. It certainly is a seller’s market, but why?
Largely due to historically low interest rates, there are more buyers than in recent memory.
It goes back to the simple economic rule of supply and demand. There are far more prospective buyers than sellers, which drives demand. With high demand in real estate comes fierce bidding wars. As seen in the video, one recent seller was able to receive over $65,000 then the original asking price. That trend is happening over most of the country. On top of that, in order to have an advantage against other buyers, some people are even waiving the inspection to save both time and money. This is rather risky, but when the competition is as tough as it currently is, buyers will continue to be aggressive.
As people get back to work coupled with low interest rates, that is the perfect formula for a seller’s market. .