Rising interest rates toward the end of 2016 spurred buyers into locking in their mortgage rates. As CoreLogic reports, the market became so tight that the months of available housing supply dipped to 4.1 months, well under the recommended six months that a healthy market has.
Sparse inventory and high buyer demand has resulted in strong price gains over the last few years. Home prices are rising faster than incomes, and bidding wars are becoming more common.
With tight supply, it becomes more difficult to bargain with the seller and multiple offers are more likely to happen.
Some of the nation’s hottest markets include Denver, San Francisco, San Jose, and Seattle.