Jacob Channel is a Senior Economist for LendingTree where he conducts studies on a wide variety of subjects related to the U.S. housing market as well as provides general macroeconomic analysis.
Well, the thing about housing prices is that certainly you can appraise how much your house will be worth and while you can make a really educated guess, you don’t necessarily know until it hits the market. A lot of times what people find, especially in housing markets that are as hot as it currently is, when they list their house, it starts to sell for more and more money than they had initially anticipated it being worth. So, the correlation in LendingTree’s data is largely due to the fact that when more people are looking to buy, there’s more competition. And as a result, people are more willing to put forth larger bids on houses and some are willing to spend a little bit more than the asking price. So, you see home prices tend to rise a little bit faster.29 July 2021