There is no one thing that is driving the market right now, but there are a few factors
that have combined to make this the craziest market we have ever seen:
1. Interest rates remain low - when money is this cheap, buyers want to take advantage and can afford more
2. Low inventory - low supply in a high demand area will always drive up prices
3. A LOT of cash - young techsters and foreign investors are pouring cash into the market
4. Rental prices are at all time highs - it frequently costs more to rent than a mortgage would cost on a similar place, so
many of those with down payment money are buying out of self-defense.
So what do you do? The short answer is it depends on your financial profile, age, goals, plan for the future, and timeline requirements to buy/sell. Even in this market we have been successful at getting offers accepted that were not the highest price, while still paying attention to some rationality when applying market metrics.
For a no-strings expert consultation to see if the time is right for you to buy (or sell), contact Managing Broker Lance R King: