If you are thinking of buying a home and you have saved for the down payment and closing costs, now is NOT the time for you to buy! Why? Because homes are selling for over list and the appraised price by $10k, $20k or even $80k. This type of market is not a good deal for a buyer. You are paying more for a house than it is worth, and this difference must be paid for in cash. You are upside down in the equity of the home from day one. I know you are thinking, “this is happening to every sale, so this is the new appraised value”. Not really.
This type of market skews the appraisals later in the year too. Appraisals are based on the sold property price, so higher price means higher appraisal. Which is true, but the appraisals are not going to be able to adsorb $30k or more price differences, overnight. If you are getting a VA or FHA loan, then you must have an appraisal. This crazy market is forcing buyers to either have a conventional loan or cash. FHA and VA buyers are being pushed out of the market.
If you are the seller than you are making great money. We list a home on the MLS, have it open to show for two days and get 5 to 10 or more offers. I hope you already have somewhere to move, because there is a huge shortage of homes, so you may have to live in an RV or a box until the market settles down!