Right now it seems as though EVERY area is being affected by the real estate boom, the market in Tulsa has been reaching record numbers, the high demand for new homes has caused a lot of turmoil for home buyers struggling to find homes before there gone…according to redfin 51% of homes are selling ABOVE listing price. The real estate market continues to break record number highs month over month in 2021, the real question is why is this happening nationwide?
The pandemic has caused record highs
The post pandemic real estate market has emerged and most researchers are suggesting that this real estate market is the result of the COVID-19 pandemic. Work from home orders has caused lots of home relocations and a shortage of homes for sale. Last year the world was put on pause and now that the real estate market is bouncing back we are having an influx of home buyers. Increasing the supply of homes for sale would certainly help bring balance to this strong seller’s market, but the most recent housing market trends don’t suggest that inventory is likely to improve soon.
Millenials are reaching prime home buying age
Millenials were born between 1981 and 1994, this generation ranges from ages 27-40 and there now making up the largest portion of home buyers in the market. Now that this generation is reaching peak home buying age they are making up the largest share of mortgage applications. According to corelogic prior to the 2020 pandemic, millennial home applications consisted of less than half of all purchase applications.
What to expect in this current real estate market?
Google reported last week that the search “When is the housing market going to crash?” had spiked 2,450% in the past month. We are in a record-breaking housing market with asking prices at an all-time high ($357,200), median sale prices at an all-time high ($347,500), the share of homes selling over list price at an all-time high (46%), and homes selling faster than ever before: 58% under contract within two weeks of listing and 46% within one week of listing. Many are left wondering if we are in the midst of a real estate crash? Researchers are suggesting that this market is likely due to the pandemic and record low inventory rates and is likely to regulate itself back to normal, therefore the chances of a crash similar to the one in 2007 is relatively low.
Want to know more about the real estate market??
our team has over 50 years of experience in both buyers and sellers markets in the Tulsa area. Home values are fluctuating frequently and your home may be worth more than you think, Give us a call today to find out more about what your home is worth in today’s market.