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How Are Soaring Materials Costs Affecting Real Estate?
 There are some factors converging in the real estate market right now that are putting home prices at an all-time high. In fact, home prices are so high and bidding wars so common that a lot of buyers are waiting for things to settle down a bit, although we don’t know when that’s going to happen.
So what’s behind the increasing home prices around the country?
There’s limited supply and increased demand, coupled with extremely high costs for building materials. That’s putting a limit on what new home builders can do right now, and a lot of current homeowners aren’t willing to sell.
Home Price
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Mortgage Rates
U.S. averages as of July 2021:
30 yr. fixed: 3.02%
15 yr. fixed: 2.34%
5/1 yr. adj: 2.53%
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price inflation peaked last year at 11.4%, and the estimates for anticipated average price growth were recently revised upward to 8.1% in 2021 and 5% in 2022. By 2023, price growth is
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How Long Should A House Stay on the Market?
 When you put your house on the market, you obviously want it to sell as fast as possible. That’s not always what happens, though. In 2020, homes spent an average of 25 days on the market, which was down from 30 days. Compare that to 2010, when the average number of days to sell a home was a whopping 140.
It’s a seller’s market right now, especially since inventory is low and building materials are incredibly expensive.
While the time on the market has, on average, gone down, there are a lot of individual factors that play a role in how long it takes to sell a house.
For example, demand, seasonality, and local market factors all play a role. So how long is too long, and why
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What’s Going On with Home Prices Right Now?
 The housing market is currently what many analysts are describing as overheated. Demand continues to grow more quickly than supply can keep up with, meaning home prices keep reaching record highs.
Rising Prices
According to data gathered by Redfin, two years ago, before the start of the COVID-19 pandemic, only around ¼ of properties were selling above asking.
Now, the most recent data shows that home prices in March rose at the fastest pace in over seven years.
The S&P CoreLogic Case-Shiller 20-city home price index went up 13.3% in March compared to a year before, making it the biggest jump since December 2013. That follows a 12% year-over-year increase in February.
Many homeowners aren’t willing to sell, and that’s leading to bidding wars. As of the end of April, there were 1.6 million homes for sale in the U.S. That’s a 20.5%
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The Law Offices of Fred Peet
55 Patchen Road
South Burlington, VT 05403
802-860-4767
800-683-3903 (toll free)
802-860-2822 (fax)
fpeet@peetlaw.com
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Meet Our Real Estate Law Team
Attorneys:
Fred V. Peet
Richard C. Maxson
Christopher M. Perra
Kevin J. Shortell
Paula LeBlanc
William Flender
Eric Derry
Paralegals/Legal Assistants:
Doreen Guthrie
Sherry Morin Barton
Amy Benway
David MacPeek
Shawn A. Nelson
Karen Eddy
Elise Martin
Marcy Brigham
Sheri Slack
Linnea Oosterman
Samantha Kittredge
Kristy Farnham
Carol Davis
Kate Miller
Closing Coordinators:
Katy Baker
Laura Martin
Daily News and Advice
Read about the events shaping the Real Estate market today, find current interest rates, or browse the extensive library of advice and how-to articles written by some of the top experts in Real Estate. Updated each weekday.
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