If the pandemic taught us one thing, it’s that stationary bikes seemed a lot cooler when we couldn’t go outside.
That and the whole recognition of our collective mortality thing, which has ignited many to adopt a Get Busy Livin’ mentality and a primal urge to leave this earth with some equity in it goddamnit. It also doesn’t help that your worst Facebook friend just posted a photo holding a key outside a “SOLD” sign accompanied with the caption, “At least one good thing came out of this crazy year…#homeowner.”
But before you delete your landlord’s number and migrate to the burbs, consider just how ridiculous the market is with these cold hard facts.
Home prices are rising more than ever before.
The median sale price of an existing home rose to a record high of $363,300 in June, 23.4 percent in the year since June 2020. The median sale price of an existing home one year ago was $294,000, The Hill reports.
The sale prices have escalated so high due to super low interest rates, federal stimulus, and buyers getting the itch.
Home prices are rising faster than at any point on record.
A great way to solve our housing crisis is to expand remote work. Someone making $100k in Seattle can't afford a house, but give them $100k in a more affordable place and watch them move from a studio to a house.
— Dan Price (@DanPriceSeattle) July 27, 2021
Asking price is just a suggestion.
According to Zillow, there were more than 940 sales that were more than $500,000 over the list price in the first quarter.
And as CNN points out, there were 310 sales that went for $1 million or more over asking in the first quarter of 2021, up 74% from last year.
— ᴡʜᴀᴛ ᴍᴏʀᴛɢᴀɢᴇ (@WhatMortgage) July 27, 2021
Bidding wars are merciless.
Wines. Dinners. Crytpo. Warriors tickets. You name it.
Esty Perez, an agent with Knipe Realty in Portland, Oregon, told CNN one of his clients was in a bidding war on a $530,000 home, and offered $25,000 over the asking price.
Another prospective buyer offered $15,000 above asking, but threw in 10 Ether coins (worth nearly $40,000 at the time of the transaction in May).
Needless to say, Buyer 2 won out.
The good news.
After a year on the market and an initial asking price of $23,950,000, Chrissy Teigen and John Legend sold their Los Angeles mansion for $16,808,000, nearly $7 million BELOW asking.
PHOTOS: Chrissy Teigen & John Legend Sell L.A. Mansion for $17M After a Year on the Market https://t.co/9CHhNtU9OD
— People (@people) July 26, 2021
So I guess there’s hope for the rest of us hapless potential homebuyers?