High demand, low housing supply, a lack of starter homes, and fierce competition are the critical factors of a booming 2021 housing market reporting record-breaking prices, says Forbes Business Council.
As demand continues to outpace supply and interest rates steadily increase, prices will likely rise in areas where housing options are limited, making it especially difficult for first-time buyers to find homes at affordable prices.
Over the summer, there were a few months when home sales slowed a little, but in August, sell rates came back stronger than ever. Lines at open houses and bidding wars for houses that in the past couldn't be sold are now commonplace. Sellers are in a tough position even when they can sell at a great price, for it only exposes them to the high prices and scarcity of the seller's market. This is why many realtors are advising clients to find a home first before they sell.
There are a total of 1.6 million homeowners currently in forbearance, and Zillow estimates 25% of them will end up in the foreclosure process. But unlike in 2008, today's market brings additional equity to those who are forced to sell and allows even those who lose their homes to access the market again and look for something more affordable.
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