By Craig Erwin, Ph.D.
Photo by Andrea Piacquadio on Pexels.com
I got a mailing from a realtor informing me that: there are relatively few homes for sale, home prices are at record highs, and buyers are waiting to pounce. Is this hyperbole? No. This is an accurate depiction of the real estate market. Sellers are in command and many buyers, facing challenging conditions, are desperate. Not only are houses in short supply, mortgage rates are much higher than they have been in years. Plus, buyers face competition from investors who can often make more attractive offers.
I remember well trying to buy a house in a sellers’ market. It’s easy to panic as you submit one failed bid after another. It can lead you to spend too much. And it could result in a winner’s curse; making the winning bid, but later regretting it. After we bought, my wife complained for many years that we had overpaid. Finally, after nearly 15 years, Zillow said our house was worth what we paid for it.
If you are in the market for a house, expect to be frustrated. Set a limit on how much you’ll pay and stick to it. It could help you avoid years of regret.
Are you house-hunting? Are you frustrated?
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