Coldwell Banker Real Estate

Survey: Pets Drive Homebuying, Renovation Decisions
Real estate professionals are figuring out ways to highlight pet-friendly property features to entice consumers.- By Melissa Dittmann Tracey
There are more American households with pets than children, and studies show that home buyers’ furry friends increasingly influence the type of home or remodeling project buyers choose. So, real estate pros need to be tuned in to the needs of their clients’ pets.

“Whether selecting pet-friendly materials or incorporating built-in feeding stations and cozy nooks, homeowners are designing spaces that prioritize the needs of all family members, including pets,” says Marine Sargsyan, an economist at Houzz, a home remodeling website. “This highlights the important role pets play in shaping how people invest in and customize their homes.”

Suzanne Weinstein, an associate broker with Coldwell Banker Warburg, recently featured an owner’s black poodle, Xander, in listing photos for a one-bedroom co-op in New York. The shot was taken unexpectedly when Xander jumped in front of the camera. Weinstein liked the photo so much that she chose it as the first listing image when marketing the home.

“There’s a nobility to Xander that helps make the photo more memorable and helps the elegance and warmth of the home come across,” Weinstein says. “Buyers have shown a lot of interest in the apartment, and about half of them have even asked whether they’ll get to meet Xander.”

Nearly 80% of consumers say that if they saw signs of a pet in a home, it wouldn’t deter them from making an offer as long as there was no damage to the property, according to a survey conducted by Quicken Loans earlier this year. Two in 10 people even said a pet-friendly home would make them want to increase their offer.
Sixty-six percent of American households own a pet, according to the American Pet Products Association. And about one-fifth of recent home buyers said they considered their pet when deciding what neighborhood to live in, according to research from the National Association of REALTORS®.

An entire home design movement, called “barkitecture,” has been inspired by pets. The style centers around incorporating pet-friendly features throughout the home, from washing stations to discreet food and watering stations incorporated into kitchen islands. About half of homeowners say they prioritized pets in their decision-making process when upgrading their home, according to the newly released 2024 Houzz Pets & Home Report, the most common considerations include choosing pet-friendly materials and a design or functionality specific to their pet, such as an animal bed or feeding station. Common projects for remodeling pet-owners include:
Flooring: Scratch-resistant and hardy flooring may be a priority. Common pet-friendly options include laminate, tile and vinyl. Laminate floors, which can resemble hardwood, can come with added protection against claw marks, according to tip sheets from National Floors Direct.
Landscaping: About 34% of pet-owning renovators say they upgraded their landscaping(link is external) specifically with their pets in mind, the Houzz survey finds.
Custom areas: Nearly one in 10 homeowners prioritize custom feeding stations and outdoor enclosures for their pets, even adding "CATIOS” or outdoor patios for cats (See photo). Some homeowners also add sleeping or relaxation areas, grooming stations and play structures for their pets’ enjoyment.

Well Pets aren’t perfect. Nearly three quarters of pet owners say they’ve had to replace a household item because their pets damaged it. Carpets and rugs were the most replaced items, followed by furniture, bedding and door frame replacements, according to the Houzz survey.

Also, homeowners acknowledge that pet messes happen, saying their biggest pet-related challenge at home is an abundance of fur and hair, followed by dirt, mud and other outdoor items being tracked into the home. More than a quarter say organizing and storing pet-related items is a challenge to keeping the home clean.

That’s why, when it comes to showings, Weinstein knows it’s best for Xander to be out of the home. Plus, “it’s easier to focus on the beautiful apartment details when Xander isn’t there being adorable and regal all at once,” Weinstein says. She does, however, give him credit for helping to get buyers in the door.

Real Estate Pro says don't believe NAR settlement Myths.- by Budge Huskey, CEO Premier Sothebys' International Realty:

THE SETTLEMENT FORCES BROKERS TO REDUCE THEIR COMPENSATION--FALSE
The settlement in no way establishes a standard or limitation on Realtors for what they may charge, nor services they elect to deliver. Those fees have always been negotiable and there has never been any collective bargaining. In every market there is a wide variety of fees, just as there are levels of marketing, service and competence.

THE SETTLEMENT WILL, FOR THE FIRST TIME, ALLOW SELLERS TO NO LONGER PAY COMPENSATION FOR AN AGENT BRINGING THE BUYER--FALSE
There has never been an obligation for a seller to pay buyer agent compensation, yet it is a practice that has worked well. A past rule requiring an offer of some amount of compensation was a rule of display on a Realtor-owned MLS, yet it could have been as low as $1. That limitation was removed and today the MLS accepts all listings, regardless of buyer agent consideration.

THE SETTLEMENT PROHIBITS SELLERS FROM PAYING A COMMISSION TO A BUYER'S AGENTAND RELIEVES SELLERS OF THE FINANCIAL BURDEN-FALSE
The mandate restricts properties with an offer of buyer agent compensation from displaying on association-owned MLS, yet the practice can't be restricted in any other form of marketing. Sellers may still elect to pay buyer agent compensation to differentiate their properties. While sellers can elect not to pay buyer agent compensation, that doesn't mean they will avoid the economics as buyers may write into any offer a contingency requiring the seller to cover the cost.

THE SETTLEMENTWILL SERVE TO MEANINGFULLY LOWER PRICES AND MAKE HOMEOWNERSHIP AFFORDABLE AGAIN--FALSE
Values in real estate are determined by supply and demand. Fees in a real estate transaction represent additional expenses, yet these include not only commissions but many other related charges. Should real estate commissions be reduced by 1% because of compression, that $500,000 home will now cost $495,000. Not only is the potential impact marginal at best, does that mean the seller now believes the home is worth less and will happily give the buyer the difference? The reason home ownership is increasingly less affordable is that homes in our market have risen significantly risen in value these last few years.

THE SETTLEMENT WILL RESULT IN SIGNIFICANT RESTITUTION TO CONSUMERS WHO WERE "HARMED" OVER RECENT YEARS IN THEIR TRANSACTIONS BY REALTORS--FALSE
The settlement is huge, yet when one divides the amount by the number of potentially qualifying consumers, it works out to about $10.00 per person! Those benefitting are the attorneys who have submitted a request to the court for over $80 million in fees. As a Realtor for over 40m years, I have had the privilege of working with Realtors who represent the public in what is likely their largest investment. What I have witnessed are the countless situations where an agent has gone above and beyond to help buyers realize their dreams and sellers maximize their returns, often serving in ways far beyond their job description.

Everyone would like to see costs lowered yet I do not see the DOJ going after attorneys or other professionals we wish would charge less. I have always believed in the concept of free enterprise. If one is willing to assume the risk of running a business, one may do so at rates that allow a reasonable return for the capital investment and time.

As my dad would say during his 60-year career, you wake up every day unemployed and have to find a job. Then you spend out of pocket and don't make a cent unless you achieve someone else's goals.

The broker community has always adapted to best represent buyers and sellers whenever there is a shift in the environment. And we will again. Yet when an industry I love is singled out for the justification is for false reasons, I will not be quiet.

49 ICHABOD ROAD in SIMSBURY
Custom Contemporary Split level

JUST LISTED! 10 PAINE ROAD in SIMSBURY! $525,000

Attention Simsbury Buyers and Sellers!

🗓️ June 2023 Market Update 🗓️

Anita Miller, REALTOR® at Coldwell Banker Realty, here to provide you with the latest real estate trends in Simsbury, Connecticut. Stay informed and make confident decisions with this comprehensive update!

📉 Inventory Update 📉
We currently have a low inventory of homes in Simsbury, with only 1.31 months supply available. Over the past 12 months, the Months Supply of Inventory has decreased by an impressive -22.49%. This means the market is highly competitive, and now may be the perfect time for sellers to list their homes. 🏘️

💰 Pricing Insights 💰
When it comes to pricing, Simsbury is thriving! The List to Sold Price percentage is a remarkable 108.8%. This indicates that homes are selling above their listing price, providing sellers with excellent opportunities for a profitable sale. 💵

⌛️ Quick Sales ⌛️
Buyers, be prepared to act fast! The median days on market in Simsbury is just 27 days. Homes are selling quickly, reflecting the strong demand from motivated buyers. Don't miss out on your dream home – work with a Realtor who can help you navigate this fast-paced market! ⚡

💲 Median Sold Price 💲
The median sold price in Simsbury is currently $500,000. This figure demonstrates the value and desirability of homes in our beautiful city. Whether you're buying or selling, it's crucial to have an experienced Realtor like myself by your side to negotiate the best possible deal. 🤝

📈 As a Realtor with local expertise, I'm here to guide you through Simsbury's dynamic real estate market. Whether you're looking to buy or sell, let's connect and discuss how these market trends can work in your favor. Contact me today to get started!

Anita Miller, REALTOR®
Coldwell Banker Realty

www.anitamillerrealtor.co

Congratulations Connie & Kyle! That's quite a home for a first time buyer you should be proud! It was our pleasure to help you find your home.

Congratulations Connie and Kyle! That's quite a house for first time homebuyers, you should be proud...It was a pleasure to help you in your home search.

One Cedar Lane in Barkhamsted....Meticulously kept ranch with beautiful grounds and a short walk to West Hill Lake! Beams and wide-board flooring, open shelf concept in kitchen....Extensive decking and walk ways...Built in Fire pit.. Sun porch and so much more!

JUST LISTED!

49 Ichabod Road, Simsbury $339,00 Custom Split level in a fantastic neighborhood! 3 Bedroom-2 Bath, updated Kitchen, hardwood refinished in LR & DR, sun porch Great back yard, very pet friendly!

Biden Administration Takes Aim at America’s Housing Shortage
Source: National Association of REALTORS® and Whitehouse.gov

The nation faces a shortage of 5.5 million homes, a gap so large it would take more than a decade to close, even if new-home construction accelerates, according to research from the National Association of REALTORS®.

The Biden administration on Monday unveiled a plan that calls for legislative and administrative actions to try to close America’s housing shortfall within five years.

The plan includes steps to create and preserve hundreds of thousands of affordable housing units in the next three years, including policies aimed at reducing housing costs and ensuring affordability, such as rental assistance and down payment assistance. It also calls for boosting the housing supply by rewarding areas that have reformed their zoning and land-use policies by offering higher scores in certain federal grant processes.

The plan also includes an outline for working with the private sector to address supply chain challenges and improve building techniques with the goal to “finish construction in 2022 on the most new homes in any year since 2006.”

NAR President Leslie Rouda Smith welcomed the administration’s focus on addressing the housing supply shortage and said calls are growing more urgent for more to be done.

“With rising mortgage rates and a persistent shortage of affordable homes, the dream of homeownership is limited for many middle-income, first-time, and first-generation home buyers,” Rouda Smith said. “Urgent action is needed to tackle our nation’s housing supply crisis.”
Rouda Smith says that a “comprehensive action” is needed that includes zoning reforms, investment in new construction, as well as expansion of financing and tax incentives to spur investment in housing and convert unused commercial space to residential.

“For too long, land use restrictions have driven up the cost of housing for too many,” Rouda Smith says. “NAR supports policies encouraging states and localities receiving federal dollars to explore high-density zoning and other land-use rules that lock out families. We also support new grant programs for localities to enact pro-housing policies.”

In April, at an event sponsored by think tank Third Way, Bryan Greene, NAR’s vice president of policy advocacy, joined Gene Sperling, American Rescue Plan Coordinator and senior adviser to the president, and Erika Poethig, special assistant to the president for housing and urban policy, to discuss solutions to the housing supply and affordability crisis. Greene spotlighted NAR’s policy proposals for increasing housing inventory:
Greene highlighted policy proposals NAR is pursuing to make homeownership accessible to more people, including down payment assistance, alternative credit, and special purpose credit programs. As a founding member of the Black Homeownership Collaborative, NAR supports the 3by30(link is external) initiative, which promotes many of these policy solutions with the goal of adding three million net new Black homeowners by 2030.
"The big challenge is that, even doing all those things, it's going to be hard to keep up with the ever-rising prices and, on top of that, the increase in interest rates," Greene said. "So, we have to address the root cause … lack of housing production."

Greene outlined supply solutions that can be activated immediately, such as converting underutilized commercial properties to residential, rehabilitating homes through the Neighborhood Homes Investment Act, and reducing capital gains taxes to promote the sale of single-family homes that are currently being held back from the market.

The "two troubles" simultaneously impacting the real estate market – record-high home prices and record-low inventory – are creating roadblocks for many Americans to achieve homeownership.

The National Association of Realtors® is America's largest trade association, representing 1.5 million members involved in all aspects of the residential and commercial real estate industries.

The spring market is already blooming, and so is the competition. Buyer competition intensified ahead of spring in February and likely will intensify further over the next few weeks.

On average, there were nearly five offers for every home sold in February, higher than in recent months, according to the February 2022 REALTORS® Confidence Index Survey. Real estate professionals who were surveyed reported more than five offers, on average, in Massachusetts, Georgia, Texas, Colorado, Utah, Washington, and California.

Nationwide, 48% of buyers’ offers were above the list price, according to NAR’s data. On average, those offers were about 2.9% above the list price; on the median-priced home, that would be about $10,000 over the asking price. However, 13% of the offers were 10% above the list price.

Real estate pros report that in general their buyers typically lose two homes before succeeding on the third try, according to the study.

Homes are selling quickly under the intense competition. Eighty-four percent of listings were on the market for less than a month.

“Competition could intensify in 2022 before waning in 2023 as home buyers compete to lock in at the current rates,” Gay Cororaton, a research economist for NAR, writes on the association’s blog. “Mortgage rates may rise more steeply in 2023.”

Source: February 2022 Realtors Confidence Index Survey

Top 5 Remodeling Projects to Boost Resale Value:
House hunters will likely wonder about the age and upkeep of certain big-ticket features in a home like the roof and HVAC system. But they will also likely be interested in just how move-in ready the home is. Sellers can take on some prep work to get their house move-in ready to appeal to the largest buyer pool.

HomeLight, a real estate referral company, recently interviewed real estate agents to list some of the top remodeling projects before selling a home. Some of the projects that topped their list:

1. Painting

Average project cost: $954 to $2,893 (depending on location, paint type, and labor)

Stick with neutral colors throughout, like whites, beiges, or soft grays. “It’s fine when there’s an accent wall or whatever; that’s different,” MaryBeth Harrison, a real estate professional in Dallas, told HomeLight. “But when every room’s a different color … that’s cheap to fix with paint.” More than half of real estate professionals surveyed by HomeLight said they advise sellers to paint their interiors before listing. Some of the most popular colors: Sherwin-Williams Agreeable Gray and Benjamin Moore’s Revere Pewter.

2. Keep flooring consistent

To install carpet: $789 to $2,794
To install hardwood floors: $2,493 to $6,754
To install vinyl floors: $800 to $2,900

Real estate pros may be more likely to recommend this house project if the home has several different kinds of flooring throughout. A more uniform flooring look—one or two types—can be more appealing to buyers. Real estate pros say that many buyers may expect hardwood floors or premium vinyl. But not all carpeting has to go. However, many real estate pros do suggest removing any dated carpet, like those in bright colors, as well as any stained or worn carpet.

3. Brighten the kitchen

Average project cost: $382 to $1,064 (depending on equipment and labor); $2 to $20 per piece of hardware

White-colored kitchens remain the most popular. They can brighten the look of the space. “What the buyers are looking for today is white and clean—they just want clean,” Harrison told HomeLight. “It doesn’t have to be stark white. But they just want a clean palette.”
Dated kitchen cabinets can be painted by a pro for a quick fix. If the kitchen has other colors throughout, real estate pros recommend painting the walls white to try to brighten the space. Also, kitchen cabinets can get an upgrade with new hardware, such as hand pulls.

4. Replace dated countertops and appliances

Average project cost: $40 to $100 per square foot for new countertops (depending on material); $1,360 to $19,050 for appliance

Dated appliances and countertops can turn off buyers. If replacing the countertop, Harrison suggests a bright, monochromatic look, such as a gray or white countertop made of granite, marble, or quartz. Butcher block countertops could be a more cost-effective option. Harrison advises against brown or multicolored granite, which she says can date a home. She also recommends not replacing a countertop if the rest of the kitchen has not been upgraded and is dated. New countertops will look out of place.

5. Hire a professional cleaner for your bathroom

Average project cost: $70 to $85 per hour for a professional
A thorough cleaning of the bathroom can make a big difference, and often a professional cleaner can do the most thorough job. Pay attention to tile grout lines and any signs of mildew.

This winter is expected to be unseasonably hot for the housing market.

“Compared to other past winter seasons, this winter season’s sales activity will be stronger,” says Lawrence Yun, chief economist of the National Association of REALTORS®. “This winter, there will be more sales compared to pre-pandemic winters going back all the way to 2006.”

The momentum from the last few months is expected to continue. From March through October, homes have been selling faster than they traditionally do.

“Although there are fewer buyers in the winter months than in the competitive spring and summer period, all signs suggest that housing demand remains high,” says Danielle Hale, realtor.com®’s chief economist.

Housing inventories remain tight. The inventory of unsold homes fell by 12% in October compared to last year, according to NAR data. A limited supply of homes for sale is an ongoing issue for the housing market against continued strong demand among potential home buyers.

Homes are selling fast. Eighty-two percent of homes sold in October were on the market for less than a month, according to NAR data.

“Many sellers should not feel the need to wait until spring, especially in high-demand areas,” Kelly Mangold, principal at RCLCO Real Estate Consulting, told realtor.com®.

Buyers may feel more rushed ad may try to qualify for historically low mortgage rates ahead of any more rises. The 30-year fixed-rate mortgage averaged 3.10% last week, according to Freddie Mac. NAR is forecasting that rates will increase to 3.50% by the middle of 2022.

Home price increases may be leveling off somewhat, too. “The days of fast price gains are over,” Yun says. “There will be few pockets of the market where bidding wars do occur, but sellers should expect much less than what was occurring the past 12 months. Home prices generally will be higher price compared to one year ago, but maybe a bit lower compared to what occurred in the summer.”

Must-See Connecticut Castle Back on the Market for $35M
by Kristine Hansen

There are certain places you’d expect to find a castle. Say France, Italy, or even Ireland. But suburban Connecticut?

The intrigue of this distinctive castle in Woodstock, CT, continues to captivate the internet.

Like with a fairy-tale romance, gawkers can’t seem to quit this wild residence. In fact, it was last week’s most popular home. And in 2014, it was even the most-viewed home of the year.

The home was relisted this month for $35,000,000, which is a $3 million increase from its 2016 list price but a big decrease from the $45 million the homeowner sought in 2014.

Prospective suitors should know that the 75-acre lot (sans home) was sold for $167,500 in 2003, with the castle built seven years later.
A railed terrace extends the entire width of the residence. Imagine what your holiday-card photos might look like!

Diamond-inlaid windows as well as beveled-glass windows contribute to the regal appeal. A dozen fireplaces keep the place cozy during winter. Entertaining will be a breeze—who wouldn’t want to show off their private castle?—thanks to the massive main kitchen with custom cabinetry, warming ovens, a Wolf range, wine fridge, and custom tower of spices at the ready. The secondary kitchen is just a tad smaller, used for hosting large parties or events.

Speaking of parties, the 4,500-square-foot lower level opens to the outdoors and folds in a fireplace and circular bar. There is also an auditorium and stage for hosting your favorite bands. Come winter you won’t have to worry about slipping and falling on the home’s deck and patios as the radiant floor heating extends to the exterior spaces.

Fit for royalty, the palatial 18,777-square-foot home features nine bedrooms and 10 bathrooms. In true castle style, the entry is connected by a bridge and encircled by a moat.

Hardwoods used in the home’s construction didn’t come just from the Northeast nor were they sourced solely from North America. They were shipped in from around the globe.

The design inspiration for this castle’s interiors skews historical, with stained-glass windows and doors throughout. The cloud-motif ceiling in the entry and living room—along with the main kitchen—makes the castle feel even more worldly than its Connecticut perch.

A regal sight to behold, the one-of-a-kind castle also overlooks the 30-acre Potter Pond.
The listing is represented by John Pizzi of Randall, Realtors.

Burned Out and Taking a Break: Homebuyer Fatigue Is Real—and Affecting the Market: - By Clare Trapasso
Sep 22, 2021

After contending with more than a year of record-high and fast-rising home prices, ruthless bidding wars, offers that are all cash and 10% to 20% over the asking price, and a historic shortage of properties for sale, many shoppers in today’s pandemic-fueled housing market are suffering from buyer fatigue.
Some are burned out and taking a break, or leaving the market entirely. Others fear another housing bubble is on the horizon (even though real estate experts believe that’s not likely) so are sitting this one out. And there are those who were priced out as home prices rose higher than their budgets.

“The ultimate sign of buyer fatigue is putting a search on pause,” says Realtor.com® Chief Economist Danielle Hale. “I can understand how in today’s tough market some buyers may not be willing to keep searching.

“There is a real grief that happens if you bid for a house and don’t get it. Mentally a part of you was already committed to the home,” she says.

Only about a third of recent homebuyers had their first offer on a property accepted, according to a Realtor.com survey from January of recent and prospective first-time buyers.

The situation was bleaker for first-time buyers, many of whom struggle to come up with the down payment. Roughly 68% of first-time buyers fell in love with a home, but ended up not being able to buy it, due to being outbid or not securing financing, or the house failing inspection, according to the survey.

The COVID-19 pandemic and all the safety concerns that come along with it have exacerbated the situation. Some potential sellers have become more hesitant to list their properties, worsening the housing shortage. Meanwhile, desperate buyers who can work remotely for part of—if not the entire—week are moving farther outside of big cities and into smaller urban areas, boosting prices and competition across the country.

“It’s likely to continue to be competitive for the foreseeable future unless something drastic changes and we see a lot more homes for sale,” says Hale. But “even if some buyers bow out, there are still plenty of buyers in the market.”

Many local and first-time buyers are being priced out
The work-from-home (aka anywhere) phenomenon has pushed prices up to unheard of heights in many parts of the country where they had previously been more reasonable. But many white-collar workers who no longer need to go to an office in the big, pricey cities on the coasts have been able to sell their expensive homes and use that cash to purchase homes in vacation areas as well as the farther-out suburbs and smaller cities. That’s made it harder for locals to compete.

“It’s pretty bad in our market for first-time buyers,” says Barbara Jordan, a real estate agent at Coldwell Banker Realty in Tampa, FL. Many of the buyers who are winning the bidding wars are from the Northeast, Chicago, and California who are selling their homes and moving to Florida. “What we’re seeing is up to 20, 30 offers on a house. The ones who win are the cash buyers or have money they can throw on top.”

The first-time buyers—most of whom are college-educated, with good jobs and often 20% down payments—sometimes just can’t compete, she says. That’s because it’s harder to get offers accepted with a mortgage. Sellers want to know they’ll get the prices offered to them even if their property doesn’t appraise for as much.

“It’s so sad—they’re good people who have done everything right,” says Jordan of these buyers. “But a lot of them are pulling back from the market.””
On the other side of the country, Los Angeles–area real estate agent Scott Pinkerton says his clients who can afford to stay put are doing just that.

“A lot have gotten frustrated by losing out to all-cash offers, investors, and being outbid,” says Pinkerton, of Century 21 Peak. Some who could have afforded a single-family home are realizing they may be able to afford only a condo now or they may need to move to a cheaper location if they want to buy. “What they want is no longer available in their price range.”

But others are just waiting for the right opportunity.

“I’ve got clients sitting on the fence who reach out to me every so often, checking to see what the market is and what they can get for their money,” he says. “Some people are sitting around waiting for a shift in the market.”

Not everyone can wait until the market cools further and more homes come online. Many of Dallas-based associate broker Debbie Murray‘s clients are out-of-towners who got jobs in the area and need places to live (whether they’re going into the office one day a week or five). The Dallas region, in particular, has become a hot spot for big companies (such as Toyota) relocating their headquarters or expanding operations in the area.

One couple from Chicago whom Murray worked with put in 11 offers before one was finally accepted. They recently closed on a $1.1 million home they bought sight unseen for roughly $100,000 over the list price with no contingencies.

“If you’re moving here from out of state, you have no choice,” says Murray, who’s with Allie Beth Allman & Associates.

Taking a break can price some buyers out
Taking an emotional health break from an active home search can be a financial risk. While bidding wars may die down a bit, potentially saving buyers some big money, prices and mortgage rates are still rising.

“Unfortunately in our market, prices just keep increasing, and in some cases for a buyer who waits too long, can price them out of the neighborhood they desire the most,” says Brad Pauly, a real estate broker at Pauly Presley Realty in Austin, TX. “I do tell them that I understand what they’re going through, but to try and push through and wait for the next week of properties to hit the market.”

During the COVID-19 pandemic, Austin emerged as one of the nation’s hottest markets. Median home list prices surged more than 46% in the metropolitan area from March 2020, when the pandemic upended life in the U.S., through August 2021, according to the most recent Realtor.com data. (Metros include the main city and surrounding suburbs, towns, and smaller cities.)

He’s seeing homes sell for 40% over the list price as out-of-towners from the coast have moved in and are bidding up prices.

“You’ve got to be the crazy buyer to win. You have to be the one who’s willing to pay well over market value to buy the house you really want,” Pauly says.

Even those who can afford the higher price tags aren’t finding the home they want with so few properties for sale.

“It’s kind of like the whole world is against them. They’re throwing their hands up. They’re defeated,” says real estate agent Greg Nino, of Re/Max Compass in Houston.

The Kerns, who were trying to find a forever home in the Indianapolis suburbs, certainly had enough—at least for now.

“We’re going to stop looking for a while,” says Ron Kern. “Right now the entire market is so out of whack. … You don’t have time to think through all the things that need to be thought through.

“We’re really fortunate that we don’t have to move. We’ve got a nice house. We can stay here for a while,” he says. “But at some point it would be nice to move toward something that’s more fitting for people our age.”

On the other side of the country, Los Angeles–area real estate agent Scott Pinkerton says his clients who can afford to stay put are doing just that.

“A lot have gotten frustrated by losing out to all-cash offers, investors, and being outbid,” says Pinkerton, of Century 21 Peak. Some who could have afforded a single-family home are realizing they may be able to afford only a condo now or they may need to move to a cheaper location if they want to buy. “What they want is no longer available in their price range.”

But others are just waiting for the right opportunity.

“I’ve got clients sitting on the fence who reach out to me every so often, checking to see what the market is and what they can get for their money,” he says. “Some people are sitting around waiting for a shift in the market.”

Not everyone can wait until the market cools further and more homes come online. Many of Dallas-based associate broker Debbie Murray‘s clients are out-of-towners who got jobs in the area and need places to live (whether they’re going into the office one day a week or five). The Dallas region, in particular, has become a hot spot for big companies (such as Toyota) relocating their headquarters or expanding operations in the area.
“If you’re moving here from out of state, you have no choice,” says Debbie Murray, who’s with Allie Beth Allman & Associates.

Taking a break can price some buyers out
Taking an emotional health break from an active home search can be a financial risk. While bidding wars may die down a bit, potentially saving buyers some big money, prices and mortgage rates are still rising.

“Unfortunately in our market, prices just keep increasing, and in some cases for a buyer who waits too long, can price them out of the neighborhood they desire the most,” says Brad Pauly, a real estate broker at Pauly Presley Realty in Austin, TX. “I do tell them that I understand what they’re going through, but to try and push through and wait for the next week of properties to hit the market.”

During the COVID-19 pandemic, Austin emerged as one of the nation’s hottest markets. Median home list prices surged more than 46% in the metropolitan area from March 2020, when the pandemic upended life in the U.S., through August 2021, according to the most recent Realtor.com data. (Metros include the main city and surrounding suburbs, towns, and smaller cities.)

He’s seeing homes sell for 40% over the list price as out-of-towners from the coast have moved in and are bidding up prices.

“You’ve got to be the crazy buyer to win. You have to be the one who’s willing to pay well over market value to buy the house you really want,” Pauly says.

Even those who can afford the higher price tags aren’t finding the home they want with so few properties for sale.

“It’s kind of like the whole world is against them. They’re throwing their hands up. They’re defeated,” says real estate agent Greg Nino, of Re/Max Compass in Houston.