Tough market forces like the 30-year fixed rate at 4.47 percent, homes selling 7 percent faster than last year, and intense bidding wars are not enough to diminish the strength of current homebuyer demand.
"The same $250,000 budget won't buy what it would have bought you last year," said Danielle Hale, chief economist for realtor.com. "But people are still finding ways to make that $250,000 work." Experts predict that the market will cool along with the weather by the end of 2018, as interest rates are expected to reach close to 5 percent, CNN reports. "There is an important psychological point when you cross 5%," says Keith Gumbinger, vice president of HSH.com.
Last year, almost a quarter of all homes sold for more than the asking price, according to a recent report from Zillow. That's one reason experts recommend knowing exactly how much you can afford and are comfortable spending on a home. It's also a good idea to get pre-approved for a loan to make your offer stronger, and be ready to move right away.
