The United States is currently in one of the most competitive housing markets the nation has ever seen. With a record low inventory of homes and an impressively high demand, prices continue to soar. In nearly every city across the country, buyers are entering into bidding wars for single-family homes. The average house is selling in only 18 days, which is 17 days faster than this time last year. Remarkably, 45% of listings are under contract in only one week, and 58% are under contract in two weeks.
The low supply and high demand of houses can be partially attributed to the record-high lumber prices that are continuing to surge. The price of softwood lumber, which is often used for framing homes, is up over 83% from one year ago. Likewise, wood and lumber prices are also hitting record numbers, as they are up 34% from last year. These alarmingly high prices are deterring many potential builders from building single-family homes which, consequentially, is reducing the supply of available homes and escalating the demand even further.
Over the next few months we can expect to see interest rates rise, however they should plateau at a relatively low number. Despite the unprecedented lumber prices, home inventory is slowly increasing, however, not fast enough to meet the demand of homebuyers. The seller’s market is predicted to continue for months to come, so if you are considering listing your house, now would be a great time to do so!