Yes, the real estate market has gone crazy this year. Who would have guessed a pandemic would have caused prices to go up 10 percent in one year! However with interest rates low it is still a good time to buy. If you are considering a purchase there are some key things you need to do which will allow you to compete in this market.
First and foremost, get pre-approved for a mortgage.
COVID restrictions have made it more complicated to view a property. Because of this some sellers won’t even let you see their house unless they know you are serious and can afford it. In reality should you even shop for a house if you don’t know what you can afford?
Second, shop under what you are willing to spend. If your maximum budget is $550,000 look at homes in the $525,000 – $530,000 range knowing that there will be multiple offers on the property and you can’t compete if it goes over your max.
Third, don’t forget their are extra costs in the transaction as well as once you buy the home. Allocate funds for those too. Homeowner’s insurance, property taxes, appraisal fee, escrow fee, etc.
According to a November 6 article in the Union Tribune, 34 percent of homes in San Diego County are selling above listing price. That is up from about 15 percent at the end of 2019.
With inventory still very low that may continue for awhile. If you want to jump into the market just make sure you are prepared and let me know how I can help!