Home Buyers Face Tough Competition

To win in a hot market, take advantage of tech to find homes as soon as they are listed.

- Patricia Mertz Esswein

Nela Richardson is chief economist for Redfin, a national real estate brokerage.

How would you describe the housing market?

Hot and record-breaking. This past spring, strong demand and a shortage of inventory resulted in the lowest supply and the fastest pace of sales that we’ve seen, and the trend will continue this fall. Basically, starter homes have disappeared. Price growth was astounding everywhere—not only on the coasts, but in places like Omaha, Grand Rapids, Mich., and Buffalo, N.Y. In most markets, buyers must be intrepid, and they need to understand that sellers are under a lot of pressure, too. Sellers want to feel confident that the deal will close so they can buy their next home.