Housing market buying frenzy

Demand is surging in almost all housing markets across the U.S. as the average U.S. home is selling above list price for the first time in history.
2:44 | 04/11/21

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Transcript for Housing market buying frenzy
look at the buying frenzy - hitting the housing market across the country. So what should you do if you are looking for a new home? ABC's Deirdre Bolton joins us this morning with more. Deirdre, good morning. Reporter: Good morning, whit. Demand is surging in almost every single market across the U.S. In fact, for the first time ever, the average home is selling for higher than list price. This morning, the housing market is on fire. Home prices are rising at the fastest pace in 15 years. If you are not willing to bring cash to the table and willing to make a lot of concessions, you're out of the game. Reporter: One example is in Austin, Texas where people from northern California is moving in droves. Some selling homes in Austin for more than 100% above asking price. The list price is no longer the list price. It's the starting point. Reporter: What is driving this frenzy? Experts say historically low inventory, historically low mortgage rates and many professionals' ability to work remotely. Prospective home buyer Jessica Russell says she's been repeatedly outbid. We started looking about a year ago. I have been told I lost out on cash offers before. Cash is king. Sadly I can't do that. I have to go through a mortgage and everything. Reporter: The competition is so intense that some would-be buyers are skipping home inspections. Experts say that is unwise. So if you spent part or a large portion of your down -- or your life savings as a down payment, god forbid you have a structural issue or mold issue, it's not going to be a good situation. Reporter: Inventory is so lean, active listings are half of what they were this time last year, and that is feeding fierce demands. Most homes are selling within a week of hitting the market. It's a fast pace, and there's a sense of immediacy. Reporter: Would-be home buyers like Jessica Russell are not giving up even though it's been a difficult year. I expect it be that way because of the way the market is. I would love to be shocked and hear yes. You put the offer in, and in this room I can do this kind of decoration, and this kind of furniture for this room. You get your hopes up. Reporter: Three tips for home buyers here. Go a little bit beneath your budget because the chances of a bidding war breaking out are high. Also, stick to your budget, whatever it is. Do not get carried away by emotion, and lastly get pre-qualified for a mortgage because as one broker told me, if you have to sleep on it, you will not sleep in it. Whit? That is a good point. So act quickly. Great tips. Thank you so much, Deirdre. We appreciate it.

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