Hello and happy "first day of Spring!" Here in Atlanta it may not crack 60ºF but that certainly isn't stopping nature from doing her thing; just ask your sinuses (am I right?)
It's also the time of year we REALTORS get stronger quad and calf muscles from pushing in all those "for sale" and "open house" signs into the ground, but it's yet to be seen if there's going to be a delay in that cycle (as it was in 2020) or if we'll see a spike in home sales listings once we're back into a more "normal" way of life when enough of us are vaccinated. Last week, I noted that the National Association of REALTORS reported we're down 49% from last year this time in the amount of listed inventory - and we're down 59% here in Atlanta.
That leads to buyers pouncing on a home listing like piranha on a new wiggly morsel in the water. So we're seeing increases in sales prices (somewhat inflated, I'd say) but no - I don't think we're headed for another dreaded "bubble." Why?
Because people with the means to outbid the rest, well, had the means. They can afford to wait for their home value to climb. Here in Atlanta, paying slightly above appraisal just means months, maybe a year until you begin building equity as opposed to doing so beginning the day you close on the home.
That doesn't mean buyers who can ONLY afford to pay what a home is worth CAN'T afford to wait for equity-building; it's just that having excess cash on hand to pad an offer isn't something the average American family believes they have, so they don't.
You may actually have access, but aren't aware or just not interested in taking the "risk." I get that; but I'll continue to say this: interest rates (thought slightly climbing) are still at historic lows and to buy in that environment means to save TENS of THOUSANDS over the life of a mortgage. If surrendering $5,000 (for example) to in savings to get the house you love makes you $25,000 (for example) in five years of equity growth - is that a good investment? I'm no financial advisor but ... isn't it obvious?
Let's discuss your options if you're considering.