Competition Surges for Prospective Homeowners

Competition Surges for Prospective Homeowners

( – Before the pandemic started in March 2020, the average home for sale sat on the market for about three weeks before receiving an offer. Now, enthusiastic and ready buyers must compete with multiple offers quickly — or risk losing their desired home because of low supply and high demand. In fact, the average time a house remained on the market in November 2021 was just one week.

The fierce competition is driving the price of houses up, which is good for sellers but bad for buyers. The dilemma pushes many first-time homebuyers out of the market entirely because homes are too expensive, and down payments are more difficult to fund. Many home prices are currently more than five times the salary of the average American.

Unfortunately for buyers, the trend doesn’t seem to be slowing down, making it challenging to take advantage of the historically low-interest rates offered by mortgage companies. If interested parties are lucky enough to find a property, they need to have the down payment, be ready to make a quick decision and give concessions to stay competitive.

Those priced out of the current housing market are turning to rentals that are also rapidly increasing in cost. Until the available home supply increases or demand decreases, the trend is likely to continue.

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