The Housing Madness Shows No Signs of Slowing

Anna Bahney at CNN Business reports that the current housing madness shows no sigs of stopping.

Bahney reported on Ellen Coleman, a real estate agent in D.C. She listed a fixer-upper in suburban Washington, DC for $275,000 on a Thursday. By Sunday evening, she had 88 offers, 76 of which were all-cash. She said in her 15-year career she had never received more offers on a house, “The offers just kept coming…I’m thinking, ‘This is just out of control.'”

  • This is not exclusive to the D.C. area. When the pandemic hit home sales dropped off. One year later, home demand has bounced back. Unfortunately, the inventory has not. Brad Dillman, the chief economist at Cortland, said “It is competition for a home that is driving the price up.”
  • Where is the inventory? Liz Brent, broker and founder of GoBrent, said millions of homeowners took advantage of record-low interest rates over the past year to refinance into a lower rate. Those homeowners aren’t likely to move soon, said Brent. “In addition, another 2.57 million homeowners are in forbearance programs with their lenders, according to Black Knight. Those homeowners may ultimately sell to find a more affordable living situation, but not right now.”

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