Rising home prices not deterring buyers

Rising home prices not deterring buyers

Rising home prices not deterring buyers
Even as home prices experienced a record-high growth of 12.9 percent over the last year, home buyers haven’t lessoned their demand. In fact, homes are selling almost as quickly as ever with no signs of slowing down any time soon

“While buyers would normally begin to hunker down this time of year, we expect to see an unusually high number remain in the market this fall,” said Danielle Hale, chief economist with Realtor.com. “A key question is whether this frenzied demand will continue into the spring or if we’ll see more balance between home buyers and sellers.”

Fierce competition is partly responsible for the surge in home prices. The number of homes for sale on the market has plummeted by 38 percent compared to last year as the pandemic keeps weary sellers from listing. In San Diego, the annual gain in home prices was 11.8 percent while listings are down 26.2 percent.

Today, conforming no-point 30-year fixed mortgage rates are averaging 2.875 percent and 15-year rates are near 2.5 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.