With the housing market continuing to heat up, the average home sale price reached an all-time high for this time compared to last year. The median home-sale price increased by about 16%, which comes out to an average sale price of $331,590.
In addition, the demand for homes has increased the percentage of pending home sales by 28% compared to this time last year. With more potential home buyers than there are available homes, the time that a house is staying on the market is getting narrower. The bidding wars over homes is increasing as buyers seek to one-up other potential buyers. During March alone, 39% of homes were sold above their asking price.
While the demand for homes is generating profit for sellers, the increasing price of homes is concerning.
According to Redfin Chief Economist Daryl Fairweather, in an article published by Redfin, “It’s concerning how much home prices have risen during the pandemic.. When the pandemic is over, purchasing a home is going to cost much more than ever before, putting homeownership much further out of reach for many Americans.”
The housing market heating up was certainly a surprise for many, especially with research finding renters concerned about their ability to pay rent. However, there seems to be no indication that those concerns are stopping the increased traffic in the housing market.