As we quickly approach the fourth quarter of the year, we know one thing: today’s real estate market is one for the record books in several different ways. There is a huge opportunity for both buyers and sellers.
Below we have listed four major aspects that shape the unprecedented market we are currently in.
Home prices are on the rise, making the housing market very competitive. In the past year, home price appreciation has rose a lot across the country. According to the most recent Home Price Index (HPI) from CoreLogic, national home prices increased 15.4% year-over-year in May:
“The May 2021 HPI gain was up from the May 2020 gain of 4.2% and was the highest year-over-year gain since November 2005. Low mortgage rates and low for-sale inventory drove the increase in home prices.”
An increase in home values is a major part of why real estate remains one of the top sought-after investments for Americans.
When you become a homeowner, your home equity doesn’t just grow when you pay the mortgage, it also grows as the home appreciates in value. CoreLogic recently reported: