Bargain hunting when buying a house is a thing of the past. Now, home buyers should be ready to go over the list price of a property if they even want their offer to be considered. According to data from the National Association of Realtors, more than half of the homes being sold in the U.S. currently are going for above their original asking price.
On average, there are 5.1 offers for every home listing. This is leading to intense bidding wars that are pleasing to sellers but discouraging to buyers. Approximately 40 percent of potential buyers say they haven’t yet made a purchase because they keep getting out bid, according to a survey from the National Association of Home Builders.
These bidding wars are also becoming an expectation for sellers with a Realtor.com survey showing that nearly a quarter of sellers anticipate getting more than their asking price.
Today, conforming no-point 30-year fixed mortgage rates are averaging 2.875 percent and 15-year rates are near 2.25 percent.
Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.