The housing market is so hot right now, that even digital homes are selling for unbelievable prices. Recently nine adjacent Genesis plots on virtual land sold for approximately $1.5 million. This purchase was completed as a non-fungible token (NFT) and while it’s an interesting trend, it means little to house hunters searching for a physical roof over their heads.
In a competitive housing market, it’s not uncommon to see home prices creep up. With limited inventory and multiple offers on homes, the price you’re willing to pay for a home may end up being higher than the appraised value. This is known as an appraisal gap and it can be a deal-breaker for mortgage lenders who use appraisals to make sure the home is worth the money they’re lending you.
Today’s housing market is white-hot. Home prices continue to rise, demand remains high, and mortgage rates remain low. Month after month the market’s activity remains on the uptick. But Google’s reports show the search question “When is the housing market going to crash?” jumped 2,450% in March confirming that homeowners, buyers, and sellers are nervous that this housing boom might actually be a bubble.
Across the country, houses are selling quickly, and prices are steadily rising, and many home buyers are losing bidding wars to buyers with all-cash offers. For couples like Alissa Resnick and Brett Banhazl, the fear of missing out makes the idea of presenting a non-contingent offer appealing.
Buying a home is a costly undertaking but it’s money well spent when you consider owning a home is one of the best ways to build generational wealth. However, the cost of homeownership for Black American’s can be over $13,000 higher when compared to White homeowners.