Housing demand has been on fire amid the pandemic, and home prices have skyrocketed in response. Many markets have seen double-digit percentage price growth since the pandemic began.

For example, in Rochester, N.Y., where home prices have been particularly volatile, the median sales price has surged by nearly 170% from September 2020 to September 2021.

The National Association of REALTORS® reports that the median existing-home price for all housing types in September was $352,800, a jump of 13.3% compared to September 2020.

Forbes.com recently identified the markets that have seen their home prices surge the most in 2021, culling housing data from Redfin. They factored in median sales price and year-over-year changes from September 2019 to 2020, inventory, months of homes supply, and the number of new listings. The following markets have posted the largest home price increases from 2019 to 2021.

Bellevue, Wash.

• Median sale price in September 2019: $887,500
• Median sale price in September 2020: $1.096 million
• Median sale price in 2021: $1.295 million

Fremont, Calif.

• Median sale price in September 2019: $992,500
• Median sale price in September 2020: $1.19 million
• Median sale price in September 2021: $1.35 million (a record high)

Scottsdale, Ariz.

• Median sale price in September 2019: $477,000
• Median sale price in September 2020: $582,500
• Median sale price in September 2021: $695,000

San Jose, Calif.

• Median sale price in September 2019: $946,000
• Median sale price in September 2020: $1.094 million
• Median sale price in September 2021: $1.24 million

Rochester, N.Y.

• Median sale price in September 2019: $167,950
• Median sale price in September 2020: $121,296
• Median sale price in September 2021: $285,000

Pembroke Pines, Fla.

• Median sale price in September 2019: $265,000
• Median sale price in September 2020: $324,450
• Median sale price in September 2021: $395,750

Glendale, Calif.

• Median sale price in September 2019: $810,000
• Median sale price in September 2020: $936,000
• Median sale price in September 2021: $1.05 million

Worcester, Mass.

• Median sale price in September 2019: $252,500
• Median sale price in September 2020: $315,000
• Median sale price in September 2021: $370,000

Boise, Idaho

• Median sale price in September 2019: $326,500
• Median sale price in September 2020: $387,270
• Median sale price in September 2021: $480,000

Palmdale, Calif.

• Median sale price in September 2019: $333,000
• Median sale price in September 2020: $410,000
• Median sale price in September 2021: $470,000

View the full list at Forbes.com.

Home building has ramped up over the last decade and notably accelerated sharply in 2020 during the pandemic, according to the National Association of Home Builders. Builders applied for 134% more single-family permits in 2020 compared to 2011. Permits are used as a gauge to measure future construction. Multifamily construction permits are 139% higher in that period.

Construction has increased the most in Texas, which nabs the top spot for activity with three out of the five largest single-family markets for housing permits.

The National Association of Home Builders identified the following markets as seeing the fastest growth in construction based on single-family permit growth from 2011 to 2020:

• Houston-The Woodlands-Sugar Land, Texas: 363,067 (total single-family permits from 2011-2020)
• Dallas-Fort Worth-Arlington, Texas: 292,219
• Atlanta-Sandy Springs-Roswell, Ga.: 196,745
• Phoenix-Mesa-Scottsdale, Ariz.: 179,479
• Austin-Round Rock, Texas: 135,181
• Charlotte-Concord-Gastonia, N.C.-S.C.: 129,832
• Washington-Arlington-Alexandria, D.C.-Va.-Md.-W. Va.: 127,967
• Orlando-Kissimmee-Sanford, Fla.: 118,372
• Nashville-Davidson-Murfreesboro-Franklin, Tenn.: 108,311
• Tampa-St. Petersburg-Clearwater, Fla.: 103,117
• New York-Newark-Jersey City, N.Y.-N.J.-Pa.: 97,224

The top three markets for multifamily permits between 2011 and 2020 have been in New York-Newark-Jersey City, N.Y.-N.J.-Pa.; Dallas-Fort Worth-Arlington, Texas; and Los Angeles-Long Beach-Anaheim, Calif.

Homes are still selling at a quick pace, but the number of bidding wars for individual listings is on the decline this fall.

Only 58.9% of home offers faced competition in September, the lowest level for 2021 so far, according to a market index produced by Redfin based on offers written by its agents. That’s down from a peak of 74.3% in April. September also marked the fifth consecutive month of declines in bidding wars.

“It’s typical to see a decline in competition as families head back to school and the weather cools down,” says Taylor Marr, Redfin’s deputy chief economist. “Buyers also aren’t having to offer as much above the asking price as they were in the spring, when competition in the housing market was peaking. As mortgage rates continue to rise, we can expect bidding wars to keep slowing.”

Still, homes are selling quickly: Eighty-six percent of homes sold in September were on the market for less than a month, according to the National Association of REALTORS®’ latest housing report. About 33% of homes that went under contract had an accepted offer within just one week of being listed on the market, up from 30% a year ago and 20% in 2019, according to Redfin data. Forty-five percent of homes sold at or above list price, up from 22% in 2019.

Where Competition Is Highest

The highest bidding war rate of 45 metro areas tracked was in the following areas, according to Redfin’s index:

• Raleigh, N.C.: 73.9% of agent offers written reported competition
• Boston: 71.7%
• Indianapolis: 71.4%
• Sacramento, Calif.: 70.5%
• San Diego: 70.3%
• Tucson, Ariz.: 70%
• Cincinnati: 69.6%
• San Francisco/San Jose, Calif.: 69.4%
• Philadelphia.: 66.3%
• Colorado Springs, Colo.: 64.3%

Repair requests after a home inspection often are the last major hurdle to clear on the way to settlement for home sellers. Sometimes the inspection report can leave buyers uncertain about what inspection repairs truly need to be fixed and what’s up for negotiation.

Many buyers over the last few months had been waiving home inspections to better compete in a bidding war. Twenty-one percent of home buyers waived the inspection contingency in September, according to the REALTORS® Confidence Index Survey from September, a survey of real estate professionals conducted by the National Association of REALTORS®.

But that is lessening, and home inspections are again a common request among buyers before completing a sale. Home inspections have long had the reputation of jeopardizing housing deals. And they still are: 10% of contracts in September were delayed due to a home inspection or environmental issue; 9% of contracts were terminated altogether for those reasons, according to the REALTORS® Confidence Index Survey.

Real estate professionals often find themselves helping their clients sort out what needs to be fixed from a home inspection report, what’s up for negotiation, and what buyers may want to let go of.

Sellers don’t have to fix everything that a home inspection turns up. No house is perfect, after all.

Lenders may require some fixes to fund buyers’ loans. Those usually involve any defects uncovered with any structural elements of the home, building code violations, or safety issues.

Inspectors often carefully evaluate the condition of the septic system, heating, electrical systems, roof, plumbing lines, and HVAC system. Problems with any of these housing elements will likely result in a fix from the home seller or a credit to the buyer, according to a recent article at realtor.com®.

“As a seller, you should never sign an inspection contract until you fully understand its obligations, particularly where it concerns your responsibility for fixing things,” Michele Lerner, author of Homebuying: Tough Times, First Time, Any Time: Smart Ways to Make a Sound Investment, told realtor.com®.

Cosmetic issues and normal wear and tear uncovered by a home inspector aren’t mandatory to fix. “Some inspection contracts will expressly state that the buyers cannot request any cosmetic fixes to be made and can only ask that structural defects, building code violations, or safety issues be addressed,” Lerner told realtor.com®.

Some home sellers are offering a home warranty to help ease buyers’ concerns from items that turn up on a home inspection.

It’s trendy to paint a brick house white. Some homeowners are jumping on the bandwagon painting their more dated red brick, for example, a more contemporary white. But others have strong views that you should never paint over original brick.

Painting a house can offer a modern update to the exterior of a home and boost its curb appeal, according to a 2021 report on the exterior and interior color trends by Clever Real Estate. “Going with a trendy color is a great way to maximize your home’s appeal—but don’t get lost in the crowd” so the home’s exterior looks the same as every other house on the block, the report notes. Exterior color schemes usually change every 10 to 20 years. Some of the trendiest exterior colors for 2021 include whites, grays, or darker slate tones, according to Consumer Reports.

To get the white house look, homeowners are painting over their brick. An advantage to painting the original brick is that it can offer some protection to the home, notes a recent blog post at Redfin on the pros and cons of painted brick. Original brick can deteriorate over time and water can be trapped within the pores. Painting the brick could offer a layer of protection.

Painted brick can also be easy to maintain. Use a hose to simply remove dirt and debris from the home. However, pressure washing could damage the paint, Redfin’s article warns.

But one of the biggest cons to carefully consider before painting the brick: “Getting back to the look of the original brick is nearly impossible once it is painted,” Redfin’s blog post warns. “Not only is it difficult to retrieve the authentic look, but painting with the wrong paint can trap existing moisture and cause damage.” The home will likely never be restored to how it looked before.

Also, after a few years, the paint will begin to peel. A new coat of paint will likely need to be applied every three to five years.

Housing in Infrastructure Bill

Leaders from the National Association of REALTORS® and other housing groups went to the U.S. Capitol on Wednesday to urge lawmakers to preserve the affordable housing provisions in the infrastructure bill Congress is debating. Lawmakers are whittling down the package—which invests in various programs such as health care, paid family leave, affordable housing, and education—from its current $3.5 trillion price tag. President Joe Biden hinted Tuesday that the final bill could be closer to $2 trillion, and media reports last week suggested housing provisions could be scaled back or eliminated.

“NAR’s 1.5 million members serve consumers in every U.S. ZIP code to ensure a fair and equitable housing market,” NAR CEO Bob Goldberg said during Wednesday’s visit to Capitol Hill. “But making sure everyone has a place to call home isn’t just the foundation of our economy. It’s the fabric of our communities, our families, and each of our lives.”

An NAR report in the spring found that America faces a housing shortage of about 6 million units, which should be an impetus for Congressional action, Goldberg added. “As a nation, we have to find ways to close this shortfall. Doing so will be particularly meaningful for lower-income households, millennials, and households of color.”

Senate Banking, Housing and Urban Affairs Committee Chair Sherrod Brown (D-OH) and House Financial Services Committee Chair Maxine Waters (D-CA) joined Goldberg and other housing leaders at a press conference near the Senate steps. Officials from a wide range of real estate industry groups were present, including Habitat for Humanity, the National Association of Hispanic Real Estate Professionals, the National Association of Home Builders, the National Fair Housing Alliance, the National Housing Conference, and the National Low Income Housing Coalition.

The real estate industry accounted for 18%—or $3.83 trillion—of America’s gross domestic product in 2020, according to NAR data. Each home sale injects roughly $94,000 into a community’s economy. View this NAR fact sheet:

©National Association of REALTORS®
Reprinted with permission

The housing market will likely remain hot, even as mortgage rates and home prices continue to rise, say economists at the government-sponsored enterprises Fannie Mae and Freddie Mac, who remain bullish on housing’s outlook.

The GSEs predict continued high levels of homebuyer demand and growth in purchase originations in 2022.

“Despite some obvious headwinds, the housing market remains strong as the economy grows,” Sam Khater, Freddie Mac’s chief economist, says. “Even as mortgage rates are expected to increase and home prices continue to rise, homebuyer demand remains steady as inventory issues have slightly improved.”

Khater expects that in 2022 strong home price growth will lift home purchase mortgage originations by more than $500 billion from 2020.

Freddie Mac and Fannie Mae economists predict that home prices will grow by nearly 17% overall for 2021 and then slow to about 7% growth in 2022. They predict the 30-year fixed-rate mortgage—which likely will end the year averaging about 3%—will inch up to 3.5% in 2022, a projection similar to expectations by National Association of REALTORS® economists.

Fannie Mae economists say that new single-family construction remains in high demand but continues to be hindered by ongoing supply constraints in materials and skilled labor. Also, economists expect inflation to run higher and suggest that the Fed’s tightening of its monetary policy, first by tapering its asset purchases, will likely impact housing.

Still, “even a modest tightening of monetary policy would of course impact housing, but we expect the effects to be largely muted given current market conditions,” says Doug Duncan, Fannie Mae’s chief economist. “Mortgage rates may rise in response to the tighter environment, but we expect the severe shortage of homes for sale to remain the primary driver of strong house price appreciation through at least 2022, limiting interest rate effects on home sales and home prices.”