Record breaking demand as housing market skyrockets

An expert from “Million Dollar Listing” shares real estate tips as more buyers look for homes amid historically low interest rates.
3:54 | 04/12/21

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Transcript for Record breaking demand as housing market skyrockets
We are back now with the skyrocketing housing market, record-breaking demand and short supply triggering bidding wars around the country. Google searches should I buy a house and should I sell my house at an all-time high. Becky Worley is here with advice from a million dollar listing. Reporter: It's all about the supply and demand equation. Covid lockdowns have families wanting for space. Throw in historically low interest rates and a lack of home construction, and the math adds up to sky-high prices. This morning, with the housing market red hot, prospective buyers are trying not to get burned as demand soars, but supply is limited. Home prices rising at their highest rate in 15 years, up 11.2%. Demand so intense that redfin reports nearly half of homes are selling within a week of hitting the market. That's a record. The market is crazy right now. Reporter: The spike, a result of the pandemic as more people work from home. Mortgage rates drop, and millions of millennials now enter their homebuying years. People with dreams of owning a home could be in for a rude awakening. Just over 1 million homes available for sale now compared to a peak of more than 4 million at the height of the last housing bubble in 2007. This couple were outbid on homes five different times since they started their home search last month. We kept seeing houses on the market that would be gone within 24 hours. Reporter: With a little patience and luck, they finally landed a home within their budget. We were outbid, and then their other buyer fell through, and they went with our off secondarily. It's really if. We need to come up with a number that works for everyone so I can get this deal done today. Reporter: Tracy Tudor says despite the competition, now is the best time to buy a home. Because the interest rates are historically low, now what you are getting into, and secure that interest rate now. You will not find it again. Reporter: A secret tip for buyers, use an escalation clause. In an escalation clause, you can say, my buyer is willing to pay $5,000 more than the highest offer you have, and then you can cap that. Reporter: Most importantly, find out what the seller really wants. Every seller has different needs and wants and desires. Make sure that your broker is reaching out to the listing broker and asking them the types of terms that their seller is actually looking for. You would be surprised. That can kind of put it over the edge. All other things considered equal. Reporter: For buyers, our experts offer a few tips. Find out as much as you can about the seller like she just said, with many sales being so quick. Sellers need more time to move out. Let them stay in the house a few months after closing escrow. Don't get married to a specific do the math. Low interest rates could make a slightly more expensive house feasible. Also have your loan ready to go, robin. Those documents can take awhile to organize. Becky, what are some tips for sellers? Reporter: Right, sellers. If you are downsizinger to planning to sell and then rent, now is the best time, but have a plan for next steps. You need a place to live, and sales and escrows can move fast. A for sale by owner is a bad idea. Use a realtor that is well-informed about your neighborhood. This is complicated, special for the multiple offer situations. It's crazy. Is that a real -- did you make that up, or is that real? My parents are realtors. Got it. Give my best to your parents too in Hawaii. Thank you, Becky.

This transcript has been automatically generated and may not be 100% accurate.

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