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Home prices are skyrocketing. Why?

A lack of inventory and scarcity of lumber is sending the cost of house construction soaring.

SAN ANTONIO — With the pandemic winding down, many who put off moving for the year are back in the market. But they’re not liking what they’re seeing, namely skyrocketing home prices and not many homes up for sale. 

It is such a strong seller's market that people aren't just buying homes and paying well over the asking price, but buying houses without examining them in person.

"I've had four people this year buy houses sight unseen, which I've never had happen. And I've only been doing this in San Antonio 36 years," said realtor Karen Nolan, adding that, because of a lack of inventory and the skyrocketing price of lumber, people are taking desperate measures to get into the house they want. "I would never tell someone (they) should not inspect the house. They are. That's a big mistake. I'm not their agent, but my people will always inspect their house."

The National Association of Realtors reports the medium price for existing homes in the U.S. climbed 16% since early 2020. That means a home that would sell for $300,000 a year ago would sell for $348,000 today. 

In San Antonio, the jump in prices matches the rises seen across the country, but some homes are selling for much much more. 

"We found plenty, but at the time we find them (and) go look at them they've got multiple offers," said Dustin Rushing, who has been looking for a home for a year and a half. "One we found had a $70,000 cash over-asking price. And it was like the same day that went up."

The house was listed at $180,000 but sold for $250,000. That's 39% over the asking price. 

"There's just a lot of different things that have happened to coalesce into a crazy, crazy market," Nolan said. 

Even as a realtor that relies on your business, Nolan says if you don't need to move right now, just wait. And make sure you do business with a realtor you trust. 

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