Home Prices on the Rise…Sellers Demand Even More
Everyone knows home prices are on the rise. But did you know that they are rising faster than ever? A reputed real estate website has conducted a survey which states that home prices are rising rapidly and have now reached an all-time high. The sellers have cashed in on this, and are demanding even higher prices than necessary, forcing buyers on the lower end to be edged out of the market.
A real estate agent told us that sellers are really excited about the rise in prices. For the buyers, this is a huge problem. The survey also reports that more than 40% of the sellers will list their homes at a price that is higher than the market value as soon as the year enters its second quarter. Considering the beginning of this year, the rise in prices by that time will be more than 33%.
So why are the sellers demanding higher prices than the market value? Because they have no issues in waiting, and they really need the extra money to pay back their mortgages. The prices which these sellers are demanding can only be met by all-cash deals because that is when there are no appraisals involved. Should the buyer opt for a mortgage, an appraisal will be conducted and if the asking price is too high, the loans will be rejected.
The real estate experts are not so sure about the high asking prices because the market does not have enough all-cash buyers.
According to the results of the survey, the sellers are really confident about the housing market right now. Over 52% of them said that this season is a great time to sell. Three months back, this value was at 37.5%. This is not a surprise since few houses were sold in March. Compared to the year before, March sales were lower by 7.5%.
Fannie Mae also conducted a survey which comprised a sample size of 1,000 homeowners and renters. The results state that 69% people thought that now is a great time to become a homeowner. Compared to the previous value, no change was observed. For people who believed that it is a good time to sell, the value increased by 4% to reach 42%. This is the highest value which this survey has ever recorded.