Anyone looking notice house prices seem to be higher?

Been looking at a lot of open houses and stuff in areas that we are interested in...notice that the home prices have risen from last year or so?

It's hard to compare one house to another but just kinda just how it seems. Of course my budget hasn't changed so it seems I can get less and less every year

Re: Anyone looking notice house prices seem to be higher?

I think sellers (and agents) are pricing homes more aggressively now, because the market is heating up.

I put in an offer on behalf of a client this weekend, and there were already 3 other offers on the house, 1 was significantly above asking!!! This house had only come out on the market a few days earlier and had the first open house yesterday. There are a LOT of buyers out there looking; at my company, our open house attendance is way up over this time last year (and same with our sale stats).

So when demand increases, prices go up!

But I do think prices are still relatively low, and interest rates are still crazy low. My FHA customers are getting rates in the high 3s still, and my conventional mortgage customers are still getting rates in the range of 4 to low 4s range (FHA rates are always better).

So even if your budget stays the same and prices go up a little, the affordability is still there. It's really all about monthly payment, and you will be able to afford SO much more if you are getting a 4% rate versus if rates go back up to over 6% (which they were when I bought in 2008). Imo, rates affect long-term affordability more than even prices do. So now is still a great time to buy.

But the key for buyers is to know the market (and working with a good agent, as well as having access to things like Listingbook, is essential for that), and to jump on a good house when you see it.

And also be reasonable with your expectations going into negotiations... nothing wrong with trying to negotiate the best deal, but try to be realistic about the value of the home and don't low-ball for the sake of lowballing. Try to package your offer as attractively as possible (make a detailed offer and back it up with a preapproval - or better yet, a mortgage commitment -- and other necessary info to show you are serious, make an emotional appeal to the seller if it is an emotionally attached seller, etc.).

In addition, price isn't everything -- terms factor in as well. So if you can be flexible about closing dates, for example, you may be able to use that as leverage and negotiate a better deal or prevail over other offers.