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‘Too many buyers, not enough sellers’: New trends emerge in soaring real estate market

The housing market across metro Richmond is on fire right now, but new trends are emerging that keep realtors on their feet!
Published: Apr. 20, 2022 at 5:41 PM EDT|Updated: Apr. 20, 2022 at 5:45 PM EDT
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CHESTERFIELD COUNTY, Va. (WWBT) - The housing market across metro Richmond is on fire right now, but new trends are emerging that keep realtors on their feet!

Shannon Milligan, a realtor at RVA Home Team with Exp Realty, said the trend is tied to the “coming soon” list. While the home is technically listed on the market, it has not yet opened for showings.

“The challenge is when a buyer gets so excited that they do make that sight-unseen offer. It is not allowing the opportunity for the other buyers to come in,” Milligan said.

Milligan said buying sight unseen is becoming common as home buyers race against time to find a house.

“[It’s like] the game Hungry Hippos… except you have 10-20 hippos and just one marble; we just have way too many buyers and not enough sellers,” she added.

It has even led to buyer fatigue, but some families still push through it.

“When you’ve lost your third, fourth, fifth house you’ve made an offer on, buyers tend to get a little more aggressive,” Milligan said.

Real estate agents said buyers are doing things they typically would not do in the past:

  • Covering the seller’s closing costs
  • Waving home inspections
  • Paying over the asking price

“We’re seeing anywhere from over $40,000, and I had one recently go for $160,000 over,” Milligan said. “It really depends on the area.”

However, many question when this hot market could start to fizzle. Milligan believes it may be tied to the interest rates.

“I think as the rates go up, maybe into the 6%-7% [range], as they’re somewhat projected, we might see some buyers pull back,” she added.

At the same time, rentals are also rising, meaning families could be dishing out more money than they’d like.

“It still might be a really good time to just hang in there and find your home vs. paying the rents you’re going to be paying for two, three or four years and then essentially paying the landlord’s mortgage,” Milligan said.

While there is no crystal ball for when the housing market may start to dip, Milligan added it’s best to look at your finances to see what options would be best for you.

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