Traditionally, President’s Day weekend is the unofficial beginning of the spring house buying and selling surge. If you plan to be part of the activities, you should be aware, bidding wars continue to contribute to the price increases.
According to CNBC many potential buyers still have not made a purchase because they keep getting outbid. The National Association of Home Builders conducted a survey that shows that 40% of buyers are claiming this as an issue. This is quite interesting since a year ago 44% said the prices were just too high and only 19% said they were outbid.
According to a Redfin survey, in January 56% of buyers had to deal with bidding wars, which is up from 52% in December. Daryl Fairweather, chief economist of Redfin stated, “With so few new listings hitting the market, I expect bidding wars to become more common and involve even more potential buyers as we head into the spring homebuying season.” She also added that buyers should be ready to go see a property as soon as it is listed, and they should get pre-approved for a loan.
There are many reasons for the housing boom, however, the biggest reason is the low supply. Paul Legere, an agent with Joel Nelson Group in Washington, D.C. states “The low cost of money now has buyers able to be more aggressive and willing to overpay for properties. As a buyer’s agent tasked with trying to help clients find value, that piece of the equation is nearly impossible to do,” he added “It is a constant struggle and scramble to find desirable targets.”
Are you planning to buy this year? Do you have a property to sell but you are not if it is the right time? Are you worried about buying or selling during a pandemic? Do you feel like you do not have the necessary support to move forward with your real estate plans? Talk to us, we are here to answer your questions, to help you figure what is right for YOU. Amin Vali Real Estate Investment is motivated by making you happy and comfortable with any decisions you choose to make.