In May, more than half of homes sold for above asking price.
Even with mortgage rates down to 2.93%, those high prices mean consumers will be getting less house for their money.
With low supply and huge demand, bidding wars have become common and the typical home sold in just 16 days last month.
Who needs the aggravation, right? Maybe consumers should just wait six months or a year for the market to calm down.
But consider the argument for buying right now:
Interest rates are still very low, and without rising rates, there's nothing tocool off prices in the foreseeable future.
A demographic tidal wave of millennials looking to buy meansdemand will be strong through 2024.
Waiting to buy in markets like Austin, Phoenix, Sacramento, Miami and Las Vegas could cost consumers dearly. Home prices rose from 18% to a staggering 42% in these markets over the last year. That means those who waited will have to pay more for the same house year over year, and lost out on the equity they could have been building during that time.
Should you buy in a super-hot housing market? If it's just going to get hotter, the answer is probably yes.
While the CFPB is reinvigorated under the Biden administration, there's plenty of room for it to retake a leading role and coordinate with the NYDFS, says Allison Schoenthal, a partner at Goodwin Proctor. HW+ Premium Content
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