Does the housing upswing have a downside?
More than a year after the pandemic kicked off a home-buying spree that sent prices to record highs, the real estate market is still gaining steam.
Buyers feel encouraged as 30-year fixed mortgage rates dip just below 3 percent, relieving some of the pressure of taking on a hefty home loan.
But as the demand for homes outpaces supply, many would-be buyers are faced with an increasingly competitive market. Bidding wars are breaking out, resulting in multiple offers on a single home and final sale prices far above asking.
Daren Jensen of Edina Realty told the Star Tribune in March he listed a midcentury rambler for $325,000. Within the first day, 41 showings were scheduled, and more than 80 buyers showed up. “I had to shut it down,” he said, “there were just too many people.”
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In the end, the sellers received 21 offers — one for $70,000 over list price.
These prospects have left hopeful first-time buyers frustrated, making it harder for some to find affordable homes.
So, who is snatching up homes? And who is being locked out of the market?
Friday, host Kerri Miller talked to two experts about real estate housing trends and your questions.
Guests:
Jeff Smith is executive director at the Missouri Workforce Housing Association and former professor of public policy at The New School.
Daryl Fairweather is the chief economist at Redfin.com.
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