Nationwide, it’s been an unusually hot summer—and we’re not just talking about the weather.
Home prices have been driven to an all-time high as buyers compete for limited inventory. And building material costs have skyrocketed amid a shortage of labor and materials.
But will the temperature keep rising? Or is the real estate market poised for a cool down?
You may have heard that there’s a shortage of available homes on the market. And it’s sparked bidding wars amongst eager (and sometimes desperate) buyers who are just looking for a place to live. This is causing homes to sell at record highs.
Then it happens… the home appraisal comes in LOW 📉😱!
With how quickly homes have been appreciating, comparable sales, which are typically used for appraisals, can be lagging, causing what we call an “appraisal gap.”
Sellers will get top dollar as buyers will struggle with affordability. This appears to be the primary message for the 2021 housing market at least through the summer housing market in 2021. Of course, it’s not very different from what we experienced throughout the second half of 2020.
