(NewsNation Now) — Trying to buy a home right now is tough, as homebuyers are facing high prices, bidding wars and low inventory.
The National Association of Realtors reports home inventory is at its lowest since the 1970s.
Adding to their frustration, homebuyers face one of three options: move away, build their own home or jump in on a bidding war.
With so many buyers, realtors say competition is still very real as “For sale” signs are coming down almost as quickly as they go up.
According to a Zillow report, 2021 had the highest number of home sales in 15 years.
“I put a listing up and within minutes my phone’s nonstop ringing, people asking for showings,” said Jose Castro with RE/MAX 5 Star Realty.
This has been the case in almost every region of the nation. Homes sell within two to four days and the average home is up in value by 19.6%, giving home sellers the upper hand.
For buyers, it’s a different story.
In South Florida, eager homebuyers are waiting every weekend ready to close a deal.
“That’s the new normal. I was ready for it,” Castro said. “That week prior to that I had the same instance on a property in West End. Listed it on a Friday, phone wouldn’t stop ringing the whole weekend. Sunday came, an open house and we had a line of people as well.”
Castro tells NewsNation that homes have received as many as 26 offers on the first day and says there are still not enough homes on the market to keep up with demand, so homebuyers are forced to make quick offers with no contingencies.
“People bidding 50, 60, $70,000 over the asking price and waiving their appraisal contingency, waiving their inspections. Never, never thought I would see somebody waiving inspection when buying a $700 —$800,000. home,” Castro said.
This year, mortgage rates are expected to slightly rise which could slow down the housing markets. But real estate experts say 2022 is still a strong seller’s market.
“I make sure they have a plan of where to go because their house will be gone in a blink of an eye,” Castro said.
Realtors say that a lot of these sellers are people that are downsizing and cashing out, trying to take advantage of the market. And they also say that there have been two new kinds of buyers who have emerged during the pandemic, millennials and families looking for more space.