If you’re thinking about selling your home — or buying a new one — you have probably been watching the market carefully. And, if you have, one thing is clear: Property values just keep on climbing.
For instance, between March of 2020 and March of 2021, the value of homes in the United States went up by more than 13%. This kind of jump in real estate prices has not been seen since 2005 when prices soared before the bubble popped in 2008.
Why are property values increasing?
The biggest reason for the increase is simple: The demand is higher than the supply. As long as people are willing to pay and need homes, they’ll keep paying higher prices. Rather than putting your home on the market and getting a lot of low offers, as you may have in previous years, you could get bids over your asking price.
That said, there is worry among investors that the housing market is just in another bubble. The last time the bottom fell out, prices plummeted for years. Those who were buying homes around 2010-2012 saw some of the lowest prices on homes that may now be worth twice what they were then.
There is also talk that values may shift as people stop working from home and go back to the office. Will that impact buyers and sellers who previously viewed homes as both houses and workspaces? Time will tell.
Do you need a lawyer for a real estate deal?
It’s clear that the housing and real estate situation may be on the verge of getting very complicated. It’s important to understand every legal step you should take at a time like this. Having an experienced firm on your side can help you avoid major problems with a real estate deal.